KUALA LUMPUR: MISC Bhd said capex spending in the global upstream sector has remained resilient due to current high oil prices.
In a statement, the energy-related maritime solutions and services provider said demand for floating production storage and offloading (FPSO) units are anticipated to remain robust, driven by the increase in global oil demand and a healthy number of planned projects mainly from Brazil, Africa and Asia-Pacific.
“The segment’s secured revenue stream from its current portfolio of long-term contracts will continue to provide stable support for its financial performance,” it said.
Meanwhile, it said the offshore business segment will strategically and selectively pursue new opportunities in the market while maintaining focus on operationalising its current projects.
In the first quarter ended March 31, 2024, MISC posted a net profit of RM759.9mil, improved from RM612.9mil in the year-ago quarter, while earnings per share rose to 17 sen from 13.7 sen previously.
The group reported revenue of RM3.64bil in 1QFY24 against RM3.08bil in 1QFY23.
It declared an interim dividend of eight sen a share, with entitlement date on June 18, 2024 and payable on June 27, 2024.
According to MISC, the improved result was owing to higher year-on-year (y-o-y) revenue of 12.1% in the petroleum and product shipping segment to RM147.2mil during the quarter due to higher earning days achieved following vessel deliveries.
The segment’s operating profit jumped 24.8% to RM77.6mil in tandem with the higher revenue.
The group’s marine and heavy engineering segment also posted higher revenue of RM984.5mil, almost double the revenue of RM496.2mil in the previous-year quarter due to higher contribution from ongoing heavy engineering projects and marine sub-segments.
The segment’s operating profit rose to RM14.4mil from RM7mil on a y-o-y basis.