MISC’s Group Financial Results For The First Quarter Ended 30 June 2010
19 August 2010
MISC Berhad (MISC) is pleased to announce its Group financial results for the 3 months ended 30 June 2010.
For the first quarter ended 30 June 2010, the Group’s revenue of RM3,270.5 million was 16.0% lower than the RM3,893.4 million revenue recorded in the corresponding quarter. Despite lower revenue, the Group’s profit before taxation (PBT) of RM471.3 million was 72.3% higher than the corresponding quarter’s PBT of RM273.5 million. The increase in the Group’s profitability for the current quarter was attributable to improved performance in the restructured Liner business and increased profitability in Heavy Engineering business.
The net tangible assets per share dropped marginally to RM5.04 as at 30 June 2010 from RM5.09 recorded at 30 June 2009 due to higher weighted average number of shares in issue (4,463.8 million vs. 3,860.8 million number of shares) in the current quarter following completion of its Rights Issue exercise in February 2010. The Group net debt equity ratio, however, reduced to 0.2:1 from 0.36:1 registered at 30 June 2009 from higher cash balances in the current quarter.
We continue to see improvements in freight rates which have translated into higher profitability for our shipping segments. However, the competitive landscape in the shipping industry remains challenging with volatility in short term rates being a key feature. In addition, expectations of higher Exploration and Production (E&P) spending in the region bodes well for our Heavy Engineering and Offshore businesses. Current year performance is expected to improve further in tandem with the global trade recovery.