KUALA LUMPUR: MISC Bhd's net profit eased 17 per cent year-on-year (YoY) to RM461.70 million for the fourth quarter (Q4) ended December 31, 2021, from RM556.00 million recorded a year ago.
In an exchange filing yesterday, the energy-related maritime solutions and services provider said this was mainly dragged by a write-back of trade receivables and loss on re-measurement of finance lease receivables.
MISC's Q4 revenue increased 17.4 per cent year-on-year to RM3.10 billion from RM2.64 billion on the back of higher recognition of revenue from conversion of an floating, production, storage and offloading (FPSO) in the offshore business segment and continued progress of ongoing projects in the heavy engineering division.
For the full year, MISC returned to the black with a net profit of RM1.83 billion, reversing its net loss of RM43 million previously, while revenue increased 13.5 per cent to RM10.67 billion from RM9.40 billion.
The group declared a fourth tax exempt dividend of 12 sen per share, payable on March 16.
President and group chief executive officer Datuk Yee Yang Chien said MISC's FY21 results demonstrated its continued resilience to sustain the upward momentum to end the year with measured confidence.
"Over the years, we have been consistently integrating the environmental, social and governance principles into our business, in line with our future-focused approach in driving long-term sustainable value for our stakeholders.
"As a result of our firm focus and commitment to sustainability, we achieved a significant milestone on the global front with our debut on the Dow Jones Sustainability Emerging Markets Index in 2021," he said in a separate statement today.
MISC expects varying macro headwinds linger in 2022 due to multiple factors affecting the near-term global economic recovery.
"Despite these challenges, we shall remain steadfast in our priorities and focus on ensuring the successful execution of our projects, delivering them into operations and converting them into cash-generating assets in the years to come," Yee said.
MISC will continue to invest strategically, prioritising key growth opportunities and maximising value creation for all our stakeholders.
The group said the medium-term outlook for liquified natural gas (LNG) shipping should remain favourable as reflected by the record number of new LNG carriers ordered in 2021.
"Notwithstanding, the operating income of the gas assets and solutions segment continues to remain stable, supported by its existing portfolio of long-term charters," Yee said.
On the petroleum shipping market, MISC said the short-term outlook was clouded by the rapid spread of the Omicron virus variant.
However, the tanker market fundamentals are expected to improve further in 2022, especially towards the second half.
"Given the uncertain landscape, the petroleum shipping segment will continue to focus on building long-term secured income through its niche shuttle tanker business and rejuvenation of its fleet with eco-friendly tankers," it said.
As the oil market continues to rebalance and with oil prices staying high, the outlook of the upstream oil and gas sector continues to be positive.
"FPSO contract awards rebounded strongly in 2021 after the slump in 2020, and demand for FPSOs is expected to stay robust in 2022, despite lingering Covid-19 concerns," MISC said.
The group's offshore business segment is expected to continue to focus on the execution of the FPSO project in hand while sourcing for opportunities in targeted markets.