KUALA LUMPUR (Aug 18): MISC Bhd slipped into the red, with a net loss of RM19.1 million, for the second quarter ended June 30, 2022 (2QFY22), against a net profit of RM538.8 million for the same quarter last year, amid higher impairment losses on non-current assets and finance costs, as well as its share of losses from joint ventures (JVs). 

The Petronas shipping arm recorded loss per share of 0.4 sen, versus earnings per share of 12.1 sen a year earlier, according to a filing with Bursa Malaysia on Thursday (Aug 18). 

MISC declared a second tax-exempt dividend of seven sen per share, with an ex date of Sept 2, to be paid on Sept 14. 

The group booked higher impairment losses of RM309.8 million for 2QFY22, compared with RM42 million a year ago, while finance costs rose to RM147.5 million from RM97.9 million. 

It recorded a RM10.3 million share of JV losses, compared to a profit of RM44.7 million a year ago.

Quarterly revenue, in contrast, grew 36.47% to RM3.21 billion for 2QFY22, from RM2.35 billion a year ago, thanks to contributions from all of its business segments. 

Gas assets and solutions revenue rose 10.4% to RM762.5 million, from RM690.5 million, mainly from higher earnings following lower dry-docking activities. 

Revenue from petroleum and product shipping was at RM1.13 billion, or 43.8% higher than RM787.2 million previously, on higher freight rates in the mid-sized tanker segment. 

Offshore business revenue jumped 57% to RM890.4 million, from RM567.1 million, mainly from recognition of higher revenue from the conversion of a floating, production, storage and offloading unit following improved project progress. 

“Revenue [from marine and heavy engineering] of RM400.6 million was RM98.1 million or 32.4% higher than the corresponding quarter’s revenue of RM302.5 million, mainly from higher activities for ongoing heavy engineering projects and increased dry-docking activities in the marine sub-segment in the current quarter (2QFY22).

“The 'others' segment recorded an operating loss of RM53.6 million, compared with the previous corresponding quarter’s loss of RM39.1 million, mainly due to higher corporate expenses,” said MISC.

For the first half ended June 30, 2022, the group booked a cumulative net profit of RM357.3 million, down 63.11% from RM968.6 million a year ago, while cumulative revenue rose 24.21% to RM6.08 billion from RM4.89 billion. 

On its prospects, MISC said its gas assets and solutions segment will continue to pursue growth opportunities available while operating income continues to remain sturdy, supported by the existing portfolio of long-term charters.

“The petroleum and product shipping segment will continue to focus on building long-term secured income through its niche shuttle tanker business and the rejuvenation of its tanker fleet,” it said. 

In the meantime, MISC’s existing portfolio of long-term contracts will continue to support the financial performance of the offshore business segment.

On the marine and heavy engineering segment, it maintains a cautious stance, while focusing on order book replenishment. It will also continue to focus on cost optimisation, while ensuring safe and timely execution of ongoing projects.

At Thursday’s noon break, MISC settled two sen or 0.28% higher at RM7.24. The stock, which was trading at a historical price-earnings ratio of 18.18 times, had a market capitalisation of RM32.32 billion.