Malaysian LNG shipping giant MISC, a unit of Petronas, said its revenue for the first nine months of the year jumped in comparison to the corresponding period in 2018.
Group revenue for the 9 months period ended September 30, 2019, of 6.58 billion Malaysian ringgit ($1.58 billion) was 3.1 percent higher than the revenue for the corresponding 9 months period ended September 30, 2018, of 6.39 billion Malaysian ringgit ($1.54 billion).
Group revenue for the quarter ended September 30, 2019, of 2.14 billion Malaysian ringgit ($517.2 million) was 3.7 percent lower than the corresponding quarter’s revenue of 2.23 billion Malaysian ringgit ($536.8 million).
The group revenue for the quarter and nine-month period was positively impacted by the uplift in the LNG business segment which was contributed by the higher number of operating vessels in the current quarter following lower drydocking and acquisition of two LNG carriers, each in December 2018 and January 2019.
The LNG business segment recorded higher operating profit, mainly contributed by higher revenue as well as additional charter rate for floating storage units (FSU).
Furthermore, lower operating loss was recorded in the Heavy Engineering segment following higher contribution from conversion works and dry-docking services on LNG carriers in the current period.
Moving forward, MISC said that in the LNG shipping segment, a surge in spot rates has raised expectation that the ground is being laid for a robust winter market.
Tonnage availability remains low and increased US liquefaction capacity is expected to drive spot rates further in the coming months. Nevertheless, the operating income of MISC’s LNG Business segment continues to be underwritten by the portfolio of long-term contracts that are in place.