Malaysian LNG shipping giant MISC, a unit of Petronas, said on Monday its liquefied natural gas business logged a 14.9 percent decrease in revenue in the third quarter of this year.

MISC’s LNG fleet of 27 carriers and two FSUs earned 595.9 million ringgit ($144.4m) in the quarter that ended September 30 as compared to 709.2 million ringgit in 2017.

MISC attributed the drop mainly due to “lower earning days and lower charter rate following contract renewal of an LNG carrier in October 2017.”

LNG operating profit of 249.4 million ringgit dropped 38.1 percent year-on-year.

Spot LNG hits record

MISC said in its quarterly financial report that LNG spot rates rose to a peak in third quarter, after a lacklustre start for the year, fuelled by higher than expected Chinese imports.

“The Group’s LNG shipping unit will take advantage of the buoyant market conditions to lockin higher charter rates for two to three of its vessels which are presently in the spot market,” MISC said.

Nevertheless, the operating income of the larger and core LNG fleet continues to be underwritten by the portfolio of long-term charters that are in place, it said.