KUALA LUMPUR: Lower number of operating vessels in the petroleum segment has dragged MISC Bhd's revenue down RM13.0 million or 0.5 per cent to RM2.37 billion in the fourth quarter ended December 31 2019 from RM2.38 billion a year ago.
Group net profit dropped to RM249.9 million from RM338.7 million previously.
MISC said the lower revenue had been offset by uplift in the liquefied natural gas (LNG) segment.
This followed redeployment of vessels previously on charter suspension and acquisition of two LNG carriers in December 2018 and January 2019 respectively, the company said in a statement today.
For the full-year, MISC said group revenue went up 2.1 per cent to RM8.96 billion from RM8.78 billion previously. Its net profit rose to RM1.43 billion from RM1.31 billion previously.
Higher revenue from dry docking services and conversion works from the heavy engineering segment contributed to the higher revenue.
MISC said the higher revenue in the LNG segment had pushed group operating profit up 25.0 per cent or RM95.2 million to RM476.6 million in the fourth quarter compared to RM381.4 million a year ago. This was supported by higher margin on freight rates in the petroleum segment.
Its heavy engineering segment also contributed to the increase as a result of improved margin in the marine sub-segment coupled with lower unabsorbed overhead costs in the current quarter.
President and group chief executive officer Yee Yang Chien said the full-year performance reflected the company's ability to generate a 36.1 per cent increase in operating cash flow year-on-year.
"Taking into consideration our current capital commitments and foreseeable new investment opportunities, I am happy that we are able to return some surplus cash to our shareholders in the form of the special dividend that has been announced together with the quarterly dividend.
"Unique to the MISC Group, we continue to see new investment opportunities before us, despite the backdrop of uncertain global growth outlook. We intend to ride this tailwind with the mission to further accelerate our growth in 2020," Yee said in the statement.
Elaborating on the results, MISC said its full-year operating profit stood at RM1.92 billion, 31.6 per cent or RM462.9 million higher from last year’s RM1.46 billion.
The petroleum segment recorded operating profit compared to an operating loss in 2018, mainly due to the higher margin on freight rates achieved.
The LNG segment also recorded higher operating profit, mainly contributed by higher revenue as well as additional charter rate for Floating Storage Units.
Lower operating loss was recorded in the heavy engineering segment mainly from higher revenue coupled with lower unabsorbed overheads in the marine sub-segment.
Group cash generated from operating activities increased by 36.1 per cent or RM1.47 billion to RM5.57 billion during the year from RM4.09 billion previously.
The increase was mainly from higher net inflows in all the business segments, MISC said.