This article first appeared in The Edge Financial Daily on November 14, 2019

KUALA LUMPUR: MISC Bhd’s net profit fell 22% to RM266.1 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM341 million a year ago, on higher impairment of assets and finance costs in the current quarter coupled with higher gain on acquisition of a business in 3QFY18.

This resulted in lower earnings per share of six sen for 3QFY19 compared with 7.6 sen for 3QFY18.

Revenue for the quarter dropped 3.7% to RM2.15 billion from RM2.23 billion a year ago, due to a one-time reimbursement cost on towing and installation of a project in the offshore segment recognised in 3QFY18.

Nevetheless, MISC declared an interim dividend of seven sen per share, payable on Dec 10.

Net profit rose 20.9% to RM1.18 billion for the nine months ended Sept 30, 2019 (9MFY19) versus RM972.8 million a year ago, while revenue was up 3.1% to RM6.59 billion from RM6.39 billion for 9MFY18.

In a statement yesterday, MISC president and group chief executive officer Yee Yang Chien said MISC’s stable financial performance for the current quarter will pave the way for a positive financial close in 2019.

“We are pleased to see a lot of projects that were previously under consideration have now come to life especially in the recent months which bode well to sustain the momentum of our healthy financial growth.

“We are hopeful of ending the financial year 2019 on a high note with a few more projects secured, after our successful tender for the liquefied natural gas tanker time charter contracts with SeaRiver Maritime (a wholly-owned subsidiary of Exxon Mobil Corp) for two vessels [for] 15 years. MISC hopes to build on that momentum of growth from now into 2020,” Yee added.