KUALA LUMPUR: After a tough 2018, MISC Bhd is looking at a stronger performance this year and in 2020, as its past projects begin contributing to its bottomline, and anticipated better market conditions.Its president and CEO Yee Yang Chien told a press conference that the company is expecting a “big jump” in 2020 as five shuttle tankers are commissioned for a floating production, storage and offloading (FPSO) project, and begin contributing to its revenue.“We are hoping for an at least 20% jump in our net operating cashflow in 2020, compared to 2018,” he said.The reason the company is measuring its performance based on cashflow, he said, was due to the changes in accounting standard.He noted that the group’s profits over the coming years will be very “lumpy” with a lot of large movements, largely due to these new accounting standards.“If we build an asset, and it is chartered out to the client for 15 years, the current accounting convention requires us to recognise the value of the entire 15 years, in the year when the asset comes into service.“So you get a sudden, big jump in the number, while in the past, we only recognised what we earned during each year,” he said.

Source: The Star April 24, 2019 08:15 UTC