KUALA LUMPUR, Feb 18 — MISC Bhd (MISC) has recorded a net loss of RM43 million for the financial year ended December 31, 2020 (FY2020), compared to a net profit of RM1.43 billion recorded in the previous year.

In a filing with Bursa Malaysia today, the group said its revenue, however, rose to RM9.40 billion from RM8.96 billion previously.

It said revenue from the liquified natural gas (LNG) segment rose by 2.7 per cent in FY2020 to RM2.65 billion, driven by higher earning days following fewer dry-docking being performed.

"The LNG operating profit of RM1.19 billion was RM600,000 higher than the corresponding year’s profit, but this was offset by higher vessel operating costs during the year,” it said.

The group also reported a higher impairment loss on ships, offshore floating assets and other property, plant and equipment of RM331.4 million in FY2020 compared to RM214.9 million in FY2019.

"The impairment loss was recorded after the group completed its assessment on the impact of Covid-19 pandemic and depressed oil price environment to the Heavy Engineering business, as most oil and gas companies are expected to postpone their upstream projects and reduce their capital spending.

"Additionally, provision for litigation claims amounting to RM1.05 billion and write-off of trade receivables and loss on re-measurement of finance lease receivables of RM846.2 million was recognised in the current year following the decision by the Arbitration Tribunal on the group’s arbitration proceeding against Sabah Shell Petroleum Ltd,” MISC said.

However, it noted that these were partially offset by the higher share of profit from joint ventures and an associate, which rose to RM429.0 million in FY2020 from RM250.6 million in FY2019, following the recognition of a one-time gain from a contract extension secured during the year. — Bernama