MISC has seen its second-quarter net profit surge by 77.5% on the back of a robust performance by its tanker arm.
The Malaysian shipowner posted a profit of MYR 571.3m ($130.6m), versus the MYR 321.9m achieved 12 months, earlier helped by a significant decline in costs.
Operating profit at its tanker arm was up 23.7% to MYR 402.2m on the back of higher margins, while revenue was up 7.8% to MYR 1.3bn.
“The petroleum shipping market rates for mid-size tankers in the second quarter of 2024 remained resilient while VLCC rates had softened amid weaker imports from China,” MISC said.
“Nevertheless, the overall tanker market outlook remains positive with increasing long-haul exports from the US, Brazil and Guyana and low fleet growth.”
MISC said the operating income from its petroleum and product shipping segment is expected to remain stable, backed by its fleet of long-term chartered vessels and potential opportunities to be capitalised in the spot trading market.
MISC’s LNG arm saw operating profit slump 40.5% due to lower earning days from contract expiries and lower charter rates. Revenue was down 10.8% to MYR 688.4m.
MISC said spot rates remained subdued in the second quarter with slight improvements in June, driven by heatwaves in Asia that lifted LNG demand, increased competition for Europe-bound cargoes for inventory restocking and the restart of key LNG terminals post-maintenance.
“The outlook for the LNG shipping market remains favourable with spot rates expected to increase due to seasonal demand and potential winter restocking,” the shipowner added.
MISC said the global upstream capital expenditure spending remains steady amid stable oil prices, which bodes well for the offshore business segment.
“The demand for newbuild floating production storage and offloading units is expected to remain robust in the coming years, driven by projects in South America, West Africa and the Asia-Pacific region, along with the anticipated steady growth in global oil demand,” it said.
Newly appointed MISC chief executive Zahid Osman said the company’s performance in the second quarter reflects its “strategic resilience and adaptability in navigating complex market conditions”.
“Despite facing some headwinds, our diversified portfolio and focus on operational excellence have enabled us to achieve commendable results,” he said.
Zahid took over as CEO of the company last week following the retirement of Captain Rajalingam Subramaniam.
