While revenue grew 11.1% to MYR2.54bn from MYR2.28bn previously on the back of higher revenue in its heavy engineering division as a result of securing more projects, the MYR47.9m net loss on ship disposals dragged overall results down. The boost from MYR54.3m in net impairment reversals in the second quarter of last year was also missed.
"Higher earnings days in the LNG business and improved freight rates in the petroleum business contributed to the increase in group revenue, while a smaller fleet of operating vessels caused a decline in the chemical business revenue,” MISC said.
Operating profit rose 10.4% to MYR382.3m mainly due to the increase in revenue and lower operating costs from a smaller fleet of operating vessels.Looking ahead, the group expects the chemical and petroleum shipping prospects to remain challenging amid an oversupply in the vessel market. “Long-term contracts in LNG and offshore businesses continue to provide stability to the group,” it added.
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