MISC net profit falls to RM301m in Q2
KUALA LUMPUR: MISC Bhd's second quarter net profit ended June 2013 fell 21 per cent to RM300.95 million from RM380.08 million a year ago.
The profit decline was mainly due to higher operating losses in petroleum business in the quarter and one-off settlement received from early redelivery of vessels on time charter contracts.
MISC also incurred higher finance cost following the cessation of its liner business last year.
In its filing to the stock exchange yesterday, MISC said its RM2.3 billion group revenue for the second quarter was 3.2 per cent lower than the RM2.4 billion posted a year ago.
The decline was mainly attributed to lower revenue from slower progress in heavy engineering projects that are at the tail end of development, coupled with lower revenue in petroleum business from softer freight rates and weak market.
However, it highlighted that the decline was mitigated by higher revenue in liquefied natural gas (LNG) business following the commencement of two floating storage units in August 2012 and better chemical freight rates.
During the quarter, MISC also sold assets amounting to RM285.38 million, recognising a net loss on disposal of RM14.15 million. This led the company to recognise RM47.88 million in net impairment reversal on vessels in the quarter.
On outlook, MISC said 2013 is expected to be another challenging year for the shipping industry with soft demand growth, volatile fuel prices and excess capacity.
However, long-term contracts in LNG shipping and offshore projects continue to provide stability to the company.
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