Thursday 28 Mar 2024
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KUALA LUMPUR (March 11): Shares in MISC Bhd extended their rebound for a second day after the oil and gas (O&G) stock dropped to a 10-year low of RM6.65 on Monday.

At 4.08pm, MISC was trading at RM7.47, up 6.7% from yesterday’s closing price of RM7.02.

Some 6.33 million shares were traded, pushing the company’s market capitalisation to RM33.48 billion.

Earlier, MIDF Research in a note that MISC is poised to benefit from the oversupply of oil which is deemed favourable for the O&G firm’s freight rates.

“As oil prices continue to remain low, oil traders are looking to hold more barrels as the oil markets face a supply glut caused by a lack of Opec+ cuts and dampened demand due to the Covid-19 outbreak.

“As such, MISC could benefit because an oversupply of oil is bullish for freight rates as tonnage will be tightened with more barrels of oil in storage,” MIDF said.

MISC’s net profit fell 26.2% to RM249.9 million for the fourth quarter ended Dec 31, 2019, from RM338.7 million a year ago, on a lower share of profit of joint ventures and higher impairment of assets, coupled with recognition of a gain on acquisition of a business in the year-ago fourth quarter.

Quarterly revenue fell by a marginal 0.5% year-on-year to RM2.38 billion, from RM2.39 billion, on a lower number of operating vessels in its petroleum segment.

This was offset by an uplift in its liquefied natural gas (LNG) segment following redeployment of vessels previously under charter suspension, and acquisition of two LNG carriers in December 2018 and January 2019 respectively.

The group declared a fourth interim dividend of nine sen per share amounting to RM401.7 million, as well as a special dividend of three sen totalling RM133.9 million.

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