PETALING JAYA: MISC Bhd posted a net profit of RM1.82 billion in the financial year ended Dec 31, 2022 (FY2022), marginally lower than the RM1.83 billion in FY2021.
However, revenue jumped 30% to RM13.87 billion from RM10.67 billion amid higher revenue contributions from all segments.
For the fourth quarter (Q4), net profit surged 39.7% to RM645 million from RM461.7 million a year ago on higher revenue contributions, while revenue jumped 34.95% to RM4.17 billion from RM3.09 billion previously.
The energy-related maritime solutions and services provider declared a fourth tax-exempt dividend of 12 sen per share, to be paid on March 15, with the entitlement date on March 1.
Earnings per share for the quarter rose to 14.40 sen from 10.30 sen last year.
“MISC delivered a positive financial performance for this quarter, driven by the resilience of our businesses across the group,’’ president and group CEO Rajalingam Subramaniam said in a statement.
He added the group will remain focused and committed to exploring new prospects, synergistic partnerships, and innovative solutions.
Boost from higher freight rates
For FY2022, its petroleum and product shipping division revenue surged to RM4.67 billion, 45.8% higher mainly from higher freight rates and earning days.
The offshore business revenue increased 42.2% to RM4.32 billion from higher recognition of revenue from the conversion of a floating, production, storage and offloading unit (FPSO) following improved project progress during the year.
The revenue of the gas assets and solutions segment increased by 8% to RM3.11 billion following higher earning days mainly from lower dry-docking activities.
Meanwhile, the marine and heavy engineering revenue rose 12.6% to RM1.65 billion amid higher progress for an ongoing heavy engineering project and higher dry-docking activities in the marine sub-segment.
In the near-term, the group expects prospects to continue to be positively backed by increasing European demand for liquefied natural gas (LNG) arising from the ongoing Russia-Europe tension; China’s demand recovery; tight vessel availability and growing LNG infrastructure reaching investment decisions, which would further support growth.
“The operating income for the gas assets and solutions segment is expected to remain strong, underwritten by its portfolio of long-term charters.
“Market rates for the petroleum and product shipping continue to remain firm with average rates further escalated in the final quarter of FY2022,” it said.
Outlook still positive
MISC said despite some recent softening, the outlook appears “positive” with average tanker earnings still relatively high.
This was supported by ongoing shifts in trade patterns following Russia-related European Union sanctions and increasing Asia-bound crude imports due to stronger demand and easing of Covid-19 restrictions.
‘’The recent OPEC+ production curbs are expected to keep the oil supply tight throughout 2023,’’ it said.
The outlook for the upstream oil and gas sector remains promising given high oil prices, increased capital expenditure spending, and improved global oil demand with China reopening its market, despite concerns on the world economy and potential for a global recession.
MISC also expects FPSO demand to continue growing favourably, with the increase in planned projects over the next few years mainly coming from the South American region with Brazil leading the bulk of the FPSO growth market, followed by the West Africa region.
At the close of trading today, MISC’s share price dropped 2 sen to RM7.33, giving it a market capitalisation of RM32.72 billion.