MISC’s Group Financial Results For The Third Quarter Ended 31 December 2009
24 February 2010
MISC Berhad (MISC) is pleased to announce its Group financial results for the third quarter ended 31 December 2009.
For the third quarter ended 31 December 2009, the revenue of RM3,047.1 million was 17.2% lower than RM3,679.2 million recorded in the corresponding quarter. MISC Group recorded a profit before taxation of RM191.6 million, which was 38.6% lower than the corresponding quarter’s profit of RM312.1 million.
The reduction was mainly due to lower profit in Petroleum business and higher losses in Liner and Chemical businesses. The Group's cost reduction efforts have led to lower operating costs of revenue especially in cargo costs, charter hire payable and slots payable.
Net tangible asset per share decreased to RM4.94 from RM5.15 as at the end of the corresponding quarter with net debt equity ratio increasing to 0.52:1 from 037:1 due to increase in borrowings to fund capex spending.
The shipping industry continues to be challenged by low demand and excess tonnage. Recent pickup in demand have absorbed some of the excess tonnages resulting in freight rates rebounding from 2009’s trough. The recovery in freight rates is expected to continue over the short to medium term. MISC’s earnings for the medium term will continue to be underpinned by the long term charters in its LNG and Offshore businesses as well as growth in its heavy engineering division.