Malaysia International Shipping Corporation Berhad (MISC)'s net profit plunged 87.1% to RM 68.2 million (USD 17.36 mln) for the fourth quarter ended December 31, 2017 compared with RM 529.8 million (USD 134.88 mln) in the previous corresponding period.
MISC said the oversupply of tonnage and cut in global oil production by OPEC in 2017 will continue to weigh on the petroleum shipping segment in 2018. However, a smaller order book for tankers and robust oil demand projections amidst declining global crude inventory will help improve tanker supply-demand balance.
“Similarly, the liquid natural gas shipping segment faces an ongoing tonnage oversupply situation and the difficult market will persist in 2018. The lack of short-term positive indicators suggests another challenging year,” MISC said in a statement.
“2017 was a challenging year for the shipping and offshore sectors as growth opportunities were scarce while revenue was under constant pressure from weak freight rates and contract renegotiation risks. However, with a steady rise in oil price over
the past 2 years, we are looking forward to better days and a healthier level of activities for the oil and gas markets
in anticipation of a potential revival in investment spending for the global energy sector
," said MISC’s President/Group Chief Executive Officer, Yee Yang Chien.
"With a clear perspective of what we intend to accomplish for our MISC2020 corporate strategy as well as leveraging on our healthy financial position, highly committed workforce and robust business strategies, we are in a strong position to sustain our momentum and create opportunities for growth,” he said.
Yee Yang Chien added “2018 marks our 50th year of operations and as the results of the many initiatives undertaken as well as the strong foundation we have laid for transformation, we are poised for a sustained and robust growth. As the market continue to change, our businesses will evolve in order for us to seize the opportunities and address the challenges that lie ahead. MISC will continue to push boundaries as we strive to exceed the expectations of our stakeholders. As one of the Strategic Partners of the Global Maritime Forum, MISC will also play a more prominent role in championing for the transformation agenda and shaping the future of the maritime industry.”