Malaysian MISC Sees Drop in Q3 Profit

Malaysian shipowner MISC, a unit of state-run Petronas, on November 17 said net profit during the three months ending September 30 (Q3) slipped 2.93% yr/yr to ringgit 258.3mn ($63mn) from ringgit 266.1mn, as a result of lower revenue from LNG and petroleum shipping.

Revenue during Q3 was down 4.1% yr/yr to ringgit 2.06bn. MISC said that the slower pace of LNG supply growth and some instances of weather-related outages at liquefaction plants have tightened supply and is expected to provide further support to the spot charter rates in the fourth quarter of the year.

“Nevertheless, the operating income of the LNG shipping segment continues to be underwritten by the portfolio of long-term charters that are in place,” it said.

The company stated that the crude tanker market continued to be affected by weak tonnage demand coupled with increased vessel availability from the unwinding of floating storage.

“The weak market could persist until the end of 2020, based on the expected rate of oil demand recovery,” MISC said. “However, the medium-term tanker supply fundamentals appear healthier, given the current low order book for new vessels. Given this environment, the petroleum shipping segment will continue to focus on building long-term secured income through its niche shuttle tanker business and the rejuvenation of its fleet with eco-friendly LNG dual-fuel systems.”