KUALA LUMPUR: MISC Bhd’s net earnings jumped 79.9% to RM538.8mil in the second quarter ended June 30, 2021, from RM299.5mil in the previous corresponding quarter.

       The growth is attributable to improvements in marine engineering, shipping and offshore business segments as well as lower forex losses.

       Revenue for the quarter was RM2.35bil, 7.7% higher than in the same quarter last year, while operating profit jumped 19.9% year-on-year (y-o-y) to RM627mil.

       The board of directors declared a dividend of seven sen per share, which brought year-to-date payout to 14 sen per share.

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       In a filing with Bursa Malaysia yesterday, MISC said its offshore business division’s revenue more than doubled to RM336.3mil from the previous corresponding quarter.

       This is due mainly to the recognition of revenue from conversion of a floating, production, storage and offloading in the quarter.

       This resulted in the segment’s operating profit rising 39.1% to RM52.5mil.

       In the marine and heavy engineering segment, the group recorded a 94.9% y-o-y jump in revenue to RM302.5mil, owing to the negative impact of the yard shutdown during the movement control order in the comparative quarter.

       The segment’s operating loss narrowed to RM26.3mil from RM100.2mil due to the additional cost provision associated with the Covid-19 pandemic recognised in the comparative quarter.

       In the petroleum and product shipping segment, operating profit was 5.1% higher y-o-y to RM212mil due to a one-off compensation for a contract renegotiation, which offset the impact of reduced freight rates and lower earning days.