The shipping firm said its gas assets and solution business, which includes a fleet of LNG and ethane carriers, posted second-quarter revenue of 688.4 million ringgit ($157 million), a drop of 10.8 percent compared to the same period last year.
This was due to lower earning days from contract expiries and lower charter rates in the current quarter, MISC said.
Moreover, MISC’s gas assets and solution business reported operating profit of 249.2 million ringgit ($57 million) in the second quarter.
Operating profit decreased by 40.5 percent compared to the same period last year due to lower revenue as explained above and higher vessel operating costs.
MISC is one of the largest operators of LNG carriers and most of them are on long-term charters.
According to MISC’s website, it operates a fleet of 28 LNG carriers, including 3 as part of joint ventures, and it also has one chartered LNG bunkering vessel.
Besides operational vessels, MISC previously said it has at least 14 LNG carriers on order.
Group profit up, revenue down
MISC’s petroleum and product shipping business reported revenue of 1.31 billion ringgit, up 7.8 percent year-on-year due to higher freight rates and earning days achieved in the current quarter.
Operating profit of 402.2 million ringgit was 23.7 percent higher than the corresponding quarter’s profit from higher margin in the current quarter, MISC said.
Looking at the overall quarterly results, MISC’s operating profit of 792.2 million ringgit ($181 million) in the second quarter rose by 49.1 percent year-on-year.
On the other hand, group revenue of 3.32 billion ringgit dropped by 6.2 percent compared to the same period before and 8.5 percent compared to the prior quarter.
MISC said revenue dropped form the prior quarter due to lower revenue recognition from the conversion of an FPSO in the offshore business segment, lower earning days in the gas assets and solutions segment in the current quarter, and lower revenue from the marine and heavy engineering segment.
Outlook for LNG shipping market remains “favorable”
In the LNG shipping market, spot rates remained subdued in the second quarter of 2024 with slight improvements in June, driven by heatwaves in Asia that uplifted LNG demand, increased competition for Europe-bound cargoes for inventory restocking, and the restart of key LNG terminals post-maintenance, according to MISC.
The outlook for the LNG shipping market remains “favorable” with spot rates expected to increase due to seasonal demand and potential winter restocking.
MISC’s gas assets and solutions segment is “well positioned to sustain its stable operating income, supported by its resilient portfolio of long-term charters,” MISC said.
