KUALA LUMPUR (Aug 9): MISC Bhd's second quarter net profit fell 59% to RM556.5 million, from RM1.35 billion a year earlier, as petroleum shipping and oil and gas structure construction revenue dropped. Asset impairment loss also curbed MISC's profit.
 
In a statement to Bursa Malaysia today, MISC said group revenue declined to RM2.3 billion in the second quarter ended June 30, 2017 (2QFY17), from RM2.39 billion. MISC places its oil and gas structure construction business under its heavy engineering unit.

"(Petroleum shipping) revenue of RM1,026.2 million was 12.0% lower than the corresponding quarter’s revenue of RM1,165.6 million, mainly due to lower freight rates and earning days in the current quarter. 

"(Heavy engineering) revenue of RM257.3 million was 13.5% lower than the corresponding quarter’s revenue of RM297.5 million, mainly due to most ongoing projects in the heavy engineering sub-segment, nearing completion," MISC said.

MISC's income statement showed impairment loss on ships, property, plant and equipment amounted to RM133.6 million versus zero a year earlier.
 
MISC's cumulative 1HFY17 net profit fell to RM1.23 billion, from RM1.92 billion a year earlier. Revenue was however higher at RM5.29 billion, versus RM4.79 billion. 

For 2QFY17, MISC declared a tax-free dividend of seven sen a share. The ex and payment dates fall on Aug 21 and Sept 7 respectively, this year.
 
At 12:30pm today, MISC shares settled at RM7.46, for a market value of RM33.3 billion.