MISC’s Group Financial Results For The Financial Year Ended 31 March 2010
6 May 2010
MISC Berhad (MISC) is pleased to announce its Group financial results for the
financial year ended (FYE) 31 March 2010.
For FYE 31 March 2010, the Group’s revenue of RM13,775.1 million was 12.7%
lower than the RM15,783.5 million revenue recorded in the previous financial year.
The Group’s profit before tax (PBT) of RM933.1 million (excluding loss on disposal
of ships of RM21.2 million) was 40.0% lower than the previous year’s PBT of
RM1,556.3 million. The reduction in the Group’s profitability was mainly due to
higher losses recorded by its Liner and Chemical businesses and reduced
profitability in its Petroleum segment.
For the fourth quarter ended 31 March 2010, the Group’s revenue of RM3,307.4
million was 17.3% lower than the RM3,999.0 million recorded in the corresponding
quarter. The Group recorded a PBT of RM279.1 million (excluding gain on disposal
of ships) in the fourth quarter, which was 49.3% higher than the corresponding
quarter’s PBT of RM186.9 million. The increase was mainly due to higher profits in
LNG and Offshore businesses. The Group's cost reduction efforts have led to lower
operating costs thereby improving results as compared to the corresponding
Arising from the Rights Issue exercise completed in February 2010, the issuance of
744.0 million new shares has led to a drop in net tangible asset (NTA) per share
from RM5.54 at the end of previous financial year to RM5.17 as at 31 March 2010.
Higher Group cash balances from the Rights Issue proceeds have led to a reduction
in net debt equity ratio to 0.2:1 as at 31 March 2010 from 0.38:1 at the end of FYE
The year 2009 saw the trough of the freight rate cycles for liner, chemical and
petroleum shipping in tandem with the global economic turmoil. Continued recovery of freight rates will track the speed and trajectory of recovery of global
economic activities. The momentum of new tonnage deliveries remains strong in the
short term. However, MISC’s performance going forward is expected to improve
with the containment of losses of its liner business. Additionally expansion of its
heavy engineering business and increase in number of earning assets of its offshore
business are expected to contribute positively to the Group's performance.
For financial year ended 31 March 2010, the Board of Directors is also pleased to
recommend a final dividend of 20 sen per share tax exempt to be paid on 30 August
2010, subject to shareholders’ approval at the forthcoming Annual General Meeting.