Net profit came in at RM613 million in the first quarter of 2023 (Q1 2023) compared with RM376 million in the previous corresponding quarter.
Revenue for the quarter rose to RM3.08 billion, up 7.4% from the RM2.7 billion recorded in the same period last year.
However, group revenue was down 26.2% and net profit slipped 5% from RM645 million compared with the preceding quarter.
It also saw lower revenue in gas assets and solutions on the back of the disposal of a vessel and expiry of a contract. Nonetheless, this was offset by the delivery of two liquefied natural gas (LNG) carriers in the same quarter.
Revenue from the shipping of petroleum products grew 36.6% to RM1.2 billion thanks to higher freight rates.
The group’s offshore as well as marine and heavy engineering segments also contributed to the higher overall net profit, with an increase in revenue of 38% and 18.8% respectively compared with the previous corresponding quarter.
This was attributed to lower project progress and relatively lower freight rates.
The company declared a first interim dividend of 7 sen per ordinary share, with entitlement date of June 9 and payment date of June 22.
Expecting a steady year ahead
Although spot rates remain subdued in the LNG shipping market, MISC is cautiously optimistic about the year ahead.
Earnings from majority of its market segments, such as gas assets and solutions as well as petroleum shipping, are expected to remain steady.
“The tanker market outlook remains positive as the recent shift in trade patterns will support tonne-mile demand and the concerns over the possible disruption to the Russian crude flows have eased,” MISC said.
“However, some moderation in overall average tanker rates is expected in the coming months as the Opec+ production curbs are likely to squeeze oil supply in the short-term,” it added.
MISC’s marine and heavy engineering segment said it would focus on improving project execution to capture more opportunities in both domestic and overseas markets to grow its order book.
At 3.37pm, MISC’s share price slipped 0.68% or 5 sen to RM7.28, giving it a market capitalisation of RM32.05 billion.