MISC’s bottom line has been affected by financing lease accounting adjustments on its Mero 3 floating production, storage and offloading vessel being built for the Petrobras-operated ultra-deepwater Mero field offshore Brazil.

The Malaysian maritime group’s operating profit for the quarter ended 30 June 2022 was 460.9 million ringgit ($103.02 million).

This was 26.5% lower than the same quarter last year, largely due to the increase in construction costs of the FPSO arising from global supply chain issues.

Recent lockdowns in parts of China also affected the movement of project personnel, goods and services, as well as engineering, procurement and construction activities.