Highlight MISC's 3Q revenue up on year at RM2.51b

by **Cals** Thu 05 Nov 2015, 02:13

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[size=28]MISC's 3Q revenue up on year at RM2.51b

By Chong Jin Hun / theedgemarkets.com | November 4, 2015 : 2:35 PM MYT

KUALA LUMPUR (Nov 4): MISC Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 1.20) reported a 3% rise in third quarter net profit from a year earlier, as revenue increased on higher petroleum shipping rates.

In a statement to Bursa Malaysia today, MISC, a 62.67%-owned subsidiary of Petroliam Nasional Bhd (Petronas), said net profit rose to RM483.56 million in the third quarter ended Sept 30, 2015 (3QFY15), from RM470.8 million. Revenue was higher at RM2.51 billion versus RM2.18 billion.

MISC said revenue rose "due to improved freight rates in the petroleum business. However, a smaller fleet of operating vessels and lower earning days, caused declines in chemical and LNG (liquified natural gas) businesses’ revenue respectively."

Cumulative 9MFY15 net profit climbed to RM1.72 billion, from RM1.25 billion a year earlier. Revenue increased to RM7.6 billion, from RM7.01 billion.

MISC's income statement showed the group registered RM232.33 million worth of impairment provision, which was incurred entirely in 3QFY15.

Looking ahead, the company said it was mindful of the impairment's impact on its financials. MISC said "the overall performance for the financial year is still subject to potential accounting impact from impairment tests, if any."

At 12:30pm today, MISC shares fell one sen or 0.1% to settle at RM9.09, for a market capitalisation of RM40.58 billion. The stock saw some 2.3 million shares done.

MISC owns 66.5% of Malaysia Marine and Heavy Engineering Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 1.65), which builds oil and gas (O&G)-related structures.

MISC said in a separate statement that the decline in world upstream O&G operations, amid lower crude oil prices, would not bode well for its heavy engineering unit.

"The cutback in exploration and production activities will continue to weigh heavily on the offshore construction activities for the heavy engineering segment," MISC said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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