KUALA LUMPUR (May 26): MISC Bhd posted a lower net profit of RM376.4 million for the first quarter ended March 31, 2022 (1QFY22) from RM429.8 million a year ago.

However, revenue was 12.9% higher at RM2.86 billion from RM2.54 billion previously, contributed by gas assets and solutions, petroleum and product shipping, offshore business, and marine and heavy engineering segments.

"Revenue of RM757.7 million for gas assets and solutions was 10.5% higher than the corresponding quarter's revenue of RM685.7 million, mainly from higher-earning days following a higher number of vessels from charter commencement of three Very Large Ethane Carriers since the end of the corresponding quarter," it said in a filing with Bursa Malaysia on Thursday.

Meanwhile, it said petroleum and product shipping's revenue of RM887.3 million was RM92.2 million higher than RM795.1 million previously, mainly from higher freight rates in the midsized tanker segment in the current quarter.

Other than that, the company said higher revenue for offshore business was due to higher recognition of revenue from the conversion of a floating, production, storage, and offloading unit.

In contrast, marine and heavy engineering's revenue was attributable to higher activities for ongoing heavy engineering projects and increased dry-docking activities in the marine subsegment.

On prospects, the company said it would continue to focus on rejuvenation of its eco-friendly tankers fleet and on building long-term secured income via its niche shuttle tanker business for the petroleum and product shipping segment.

"The outlook for the upstream oil and gas sector continues to be positive as oil prices stay elevated and with increasing global demand for oil amid a gradual return to more normal activity levels," it noted.

It also said the marine and heavy engineering segment remains vigilant on the outlook of its heavy engineering subsegment, as the timing of oil majors' capital spending remains uncertain with high prevailing steel prices, while the marine subsegment is expected to recover in 2022 gradually.

"With the reopening of international borders and removal of compulsory quarantine requirements, the entry of technical experts is no longer restrictive.

"This would increase the likelihood of projects to be secured from foreign clients," it added.