Gas assets revenue rose 2.6%—how much came from weak ringgit?

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MISC Bhd's Gas Segment Revenue Increase Attributed to Ringgit's Depreciation

MISC Bhd's gas assets and solutions segment experienced a 2.6 per cent increase in revenue, reaching RM775.3 million from RM755.9 million in the prior period. The primary driver behind this rise was the translational impact of a weaker ringgit against the US dollar during the quarter. However, operational factors, including fewer earning days due to contract expiries and vessel disposals, contributed to a decrease in segment revenue on an operational basis.
Revenue Growth Driven by Currency Fluctuations

The revenue for MISC Bhd's gas assets and solutions segment saw an uplift of 2.6 per cent, amounting to RM775.3 million compared to RM755.9 million previously. This positive movement in reported revenue was predominantly influenced by the exchange rate, specifically the depreciation of the Malaysian ringgit against the US dollar in the reported quarter.
Operational Challenges Impact Revenue

Despite the overall revenue increase, the operational performance of the gas assets and solutions segment indicated a decline. This was a direct consequence of a reduction in earning days. Factors contributing to this included the expiry of existing contracts and the disposal of certain vessels, which consequently reduced the segment's revenue-generating capacity from its core operations.
Broader Financial Performance of MISC Bhd

The overall financial results for MISC Bhd in the first quarter ended March 31, 2024, showed a significant increase in net profit, which surged to RM759.90 million from RM612.90 million in the corresponding period of the previous year. This overall profit growth was supported by a general rise in revenue across the company's various segments, with total revenue climbing to RM3.64 billion from RM3.08 billion.
Dividend Declaration

In conjunction with its strong financial performance, MISC Bhd announced a first tax-exempt dividend of eight sen per share. This dividend distribution amounts to RM357.1 million and is scheduled to be paid on June 27, 2024, reflecting the company's profitability and commitment to shareholder returns.

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Gas assets revenue rose 2.6%—how much came from weak ringgit?

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