Shipping giant MISC released its second quarter results with a revenue of RM3.3 billion which was RM220.2 million or 6.2% lower than the quarter ended 30 June 2023 of RM3.5 bilion, while Group operating profit of RM792.2 million was RM260.9 million or 49.1% higher than the corresponding quarter's profit of RM531.3 million.
Profit after expenses and tax stood at RM540 million which was higher by about RM90 million compared to RM452 million registered in the same period last year.
Gas Assets & Solutions revenue of RM688.4 million was RM83.4 million or 10.8% lower than the corresponding quarter's revenue of RM771.8 million due to lower earning days from contract expiries and lower charter rates in the current quarter.
Operating profit of RM249.2 million was RM169.4 million or 40.5% lower than the corresponding quarter's profit of RM418.6 million due to lower revenue as explained above and higher vessel operating costs.
Petroleum & Product Shipping revenue of RM1,312.7 million was RM94.6 million or 7.8% higher than the corresponding quarter's revenue of RM1,218.1 million following higher freight rates and earning days achieved in the current quarter.
Operating profit of RM402.2 million was RM77.0 million or 23.7% higher than the corresponding quarter's profit of RM325.2 million from higher margin in the current quarter.
Offshore Business revenue of RM431.4 million was RM35.3 million or 7.6% lower than the corresponding quarter's revenue of RM466.7 million due to lower recognition of revenue from the conversion of a Floating, Production, Storage and Offloading unit
("FPSO") following lower project progress in this quarter. Operating profit of RM73.2 million was RM166.5 million or 69.5% lower than the corresponding quarter's profit of RM239.7 million due to lower revenue as mentioned above and adjustment on cost provisions relating to an asset in the corresponding quarter.
As for the first half, the group revenue of RM6.9 billion was RM339.4 million or 5.1% higher than the revenue for the 6-month period ended 30 June 2023 ("corresponding period") of RM6.6 billion which the group said was mainly contributed by higher revenue from on-going Heavy Engineering projects as well as higher freight rates and earning days in the Petroleum & Product Shipping segment.
However, MISC said the increase in revenue was offset by lower revenue recognition from the conversion of an FPSO following
lower project progress in the current period. Group operating profit of RM1,674.2 million was RM317.4 million or 23.4% higher than the corresponding period's profit of RM1,356.8 million contributed by the recognition of cost recovery claims in the current period, offset with the additional cost provisions recorded in the corresponding period due to revised schedule for on-going projects in the Marine & Heavy Engineering segment. In addition, the higher operating profit was also contributed by higher margin in the Petroleum & Product Shipping segment.
The Board of Directors have approved a second tax exempt dividend of 8.0 sen per share in respect of financial year 2024
amounting to RM357.1 million. The proposed dividend will be paid on 26 September 2024 to shareholders registered at
the close of business on 9 September 2024.