Liquefied natural gas (LNG) shipping company has released its financial results for the year ended 31st December 2016 which show Group revenue for the quarter and the year were low than the corresponding periods for 2015.
Group profit before tax for the quarter ended 31st December 2016 was lower than the corresponding quarter ended 31st December 2015 but Group profit before tax for the year ended 31st December 2016 was higher than the year ended 31st December 2015.
Group revenue for the quarter ended 31st December 2016 of RM2,517.5 million was 24% lower than the corresponding quarter’s revenue of RM3,312.1 million.
The decrease in Group revenue was mainly due to lower revenue in two business segments, namely, Heavy Engineering and LNG. Heavy Engineering’s lower revenue was due to fewer and lower backlog and order intake in its Heavy Engineering sub-segment.
However, its Marine sub-segment recorded higher revenue from higher value of vessel repairs and FPSO conversion works in the current quarter.
The disposal of two vessels and lower charter rates earned on new contracts caused a decline in LNG revenue. However, consolidation of Gumusut-Kakap Semi-Floating System’s results, following completion of the equity buyback in May 2016, and commencement of a Marginal Marine Production Unit contributed to an increase in Offshore revenue for the quarter ended 31st December 2016.
“The year 2016 saw the global shipping industry undergoing another volatile year where businesses across the Oil & Gas supply chain suffered
under very difficult market conditions. Despite the prevailing challenges in 2016, MISC once again proved its resilience by turning in commendable financial and operational performances,” Yee Yang Chien
, MISC President/Group Chief Executive Officer, said.