by BERNAMA / graphic by MZUKRI MOHAMAD
MISC Bhd posted a slightly lower net profit of RM258.3 million in its third quarter ended Sept 30, 2020 (Q3 2020) versus RM266.1 million in the same quarter last year.
Revenue slipped by 4.1 per cent to RM2.06 billion compared with RM2.15 billion recorded in Q3 2019, it said in a filing with Bursa Malaysia today.
It said revenue from the liquefied natural gas (LNG), petroleum and offshore segments dropped by 5.7 per cent, 13.2 per cent and 17.4 per cent to RM613.4 million, RM851.1 million and RM215 million, respectively.
In contrast, revenue from the heavy engineering segment jumped 45.3 per cent to RM369.4 million from the corresponding quarter’s revenue of RM254.3 million, mainly from increased activities in ongoing heavy engineering projects.
MISC said given the prolonged oil market downturn prognosis, its heavy engineering segment will remain vigilant in pursuing business opportunities in other segments to replenish its order book.
It will also continue to focus on cost management to optimise its operating cost and delivery of ongoing projects while the market is recovering.
However, it noted that the rising COVID-19 cases worldwide, further cuts to oil and gas capital spending as well as deferment of final investment decisions by oil majors will limit its ability to secure new orders in the interim.
MISC said although the cutback in capital spending by major oil companies will affect the number of floater opportunities available in the near term, the offshore business segment will continue to source for attractive opportunities in targeted markets.
It will also concentrate on the execution of the new floating production, storage and offloading project in hand.
Additionally, the company’s petroleum shipping segment will continue to focus on building long-term secured income through its niche shuttle tanker business and rejuvenate its fleet with eco-friendly LNG dual-fuel systems.
In a separate announcement, MISC announced a third interim tax exempt dividend of seven sen per share.