KUALA LUMPUR (Nov 18): MISC Bhd's net profit for the third quarter ended Sept 30, 2021 (3QFY21) jumped 55% year-on-year to RM401 million from RM258.3 million on the back of higher revenue.

In a bourse filing on Thursday (Nov 18), MISC said revenue for the quarter rose to RM2.69 billion from RM2.06 billion.

Earnings per share jumped to nine sen from 5.8 sen.

MISC declared a dividend of seven sen per share in respect of FY21, amounting to RM312.5 million, to be paid on Dec 14.

For the nine months ended Sept 30, 2021, net profit surged to RM1.37 billion from a net loss of RM599 million on the back of a revenue of RM7.59 billion versus RM6.76 billion.

Reviewing its performance, MISC said spot charter rates remained relatively steady in 3QFY21 despite a surge in European gas demand due to lower wind and solar power generation.

However, it said liquefied natural gas (LNG) shipping rates are expected to strengthen towards year end on account of high winter season demand in Europe and Asia.

Despite surging gas prices, MISC said Asian LNG demand is likely to remain robust as China is facing power outages in its northern regions with its policy of curbing coal consumption leading to gas shortages.

Notwithstanding the market volatility, it said operating income of its LNG asset solutions segment is expected to remain fairly stable, underwritten by its portfolio of long-term charters.

“The prolonged impact of the pandemic and OPEC+ production cuts continues to have an adverse effect on the petroleum shipping market, especially in the crude sector.

“In the short term, the tanker market is expected to see some modest improvement towards winter, although risks to the market outlook remain,” it said.

On its prospects, MISC said the global offshore exploration and production space had shown its resilience and ability to execute projects despite Covid-19 restrictions.

It said the medium-term outlook for the floating production system sector seems promising with positive expectations for global growth and sturdy oil prices, together with attractive returns for offshore developments and pipeline projects to be sanctioned.

“The offshore business segment will continue to focus on the execution of the new FPSO (floating production storage and offloading) project in hand while also sourcing for opportunities in targeted markets.

“For the time being, the existing portfolio of long-term contracts will continue to support the financial performance of the segment,” it said.

In a separate statement, MISC president and group chief executive officer Datuk Yee Yang Chien said its third quarter results highlight the full value of portfolios as revenues continued to strengthen.

“The steps we have taken showcase our capacity in building strong business momentum, obtaining the maximum possible value and driving resilience in this dynamic market environment.

“Moving deeper into post-pandemic economic recovery, we are positioned well to execute our long-term strategy for profitable growth as we advance towards our goals for a decarbonised future,” said Yee.

At the midday break on Thursday, MISC had added one sen to RM6.90, valuing it at RM30.8 billion.