KUALA LUMPUR (Aug 13): MISC Bhd's net profit for the second quarter ended June 30, 2020 fell 25% to RM299.50 million from RM399.80 million a year earlier, due mainly to the recognition of an impairment loss of RM300 million.

In a bourse filing, the group said revenue for the quarter, however, was slightly higher at RM2.19 billion compared to RM2.16 billion previously.

Earnings per share slipped to 6.7 sen from 9 sen a year ago.

MISC declared a second tax-exempt dividend of 7 sen per share to be paid on Sept 15.

For the six months ended June 30, MISC posted a net loss of RM857.30 million versus a net profit of RM910.30 million in the year-ago period, on the back of revenue of RM4.70 billion against RM4.44 billion previously.

Reviewing its performance, MISC said the net loss for the six-month period was mainly due to the provisions and impairment loss recorded in the first quarter of 2020 relating to the adverse decision on arbitration proceedings by Gumusut-Kakap Semi-Floating Production System (L) Ltd against Sabah Shell Petroleum Company Ltd.

MISC said it also recorded impairment loss on its heavy engineering’s asset in the second quarter in light of the current oil and gas downturn, Covid-19 pandemic and the expected prolonged recovery of the industry.

In a separate statement, MISC president and group chief executive officer Yee Yang Chien said the group recorded a stable performance contributed largely by the LNG and petroleum segment for the second quarter notwithstanding the global harsh blows of the unprecedented Covid-19 pandemic.

“As we move on to the next quarter with a firm and steady steer, MISC will continue with the completion of projects and expenditure optimisation across the group.

“Most important for us now is that we keep a tight grip on our policies and practices on safety and health for our personnel across the globe; be it at sea or shore as their wellbeing remains as our top priority.

“We will not ignore reality and depart from the fact that the months to come will be challenging but we must persevere and remain optimistic on the development of many strategic initiatives that we have set out to achieve,” he said.

At midday break, MISC was unchanged at RM7.88, for a market capitalisation of RM35.18 billion.