Malaysian shipowner MISC , which recorded a 40% year-on-year (y-o-y) earnings jump for the fourth quarter of its 2022 financial year (4Q22), expects a promising outlook in its operating segments in financial year 2023 (FY23) and an upbeat on LNG and tanker shipping earning, despite some softening.
In particular,, MISC expects the LNG shipping market to remain strong thanks to increasing European demand for LNG, Chinese demand recovery and tight vessel availability and growing LNG infrastructure. In an official company statement, the company says that in the LNG shipping market, spot rates continue to remain high in the final quarter of FY2022 despite falling sharply in December due to unwinding floating storage activity and delayed restart of Freeport LNG plant in the US.
However, in the near term, prospects continue to be positive backed by:
- Increasing European demand for LNG arising from the ongoing Russia-Europe tension;
- China’s demand recovery; and
- Tight vessel availability and growing LNG infrastructure reaching investment decisions, which would further support LNG growth while surging newbuild price and tight shipbuilding spaces will be a challenge in meeting new LNG project requirements.
Over the full FY22, company’s net profit amounted to RM1.82bil, which was comparable to RM1.83bil net profit it earned in FY21, despite revenue for FY22 rising by 30% y-o-y to RM13.87bil.
MISC delivered a positive financial performance for this quarter, driven by the resilience of our businesses across the group. We remain focused and committed to exploring new prospects, synergistic partnerships, and innovative solutions
…said MISC president and group CEO Rajalingam Subramaniam in the statement.
