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 quarter.

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 2009.

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.