18 August 2011
MISC Berhad (MISC) is pleased to announce its Group financial results for the first quarter ended 30 June 2011.
For the current quarter ended 30 June 2011, the Group recorded an 8.0% reduction in its revenue from RM3,270.5 million in the corresponding quarter to RM3,009.3 million, mainly due to lower revenue from Heavy Engineering and Liner businesses. However, the higher revenue in Chemical and Offshore businesses helped to cushion the impact of revenue reduction in Heavy Engineering and Liner businesses.
The Group profit before tax of RM200.6 million, was 57.4% lower than RM471.3 million recorded in the corresponding quarter. The decrease in profit was mainly due to losses in Petroleum business from weakening of freight rates and higher losses in Liner business from lower liftings.
As compared to the preceding quarter, the Group saw 2.9% growth in its revenue from RM 2,924.4 million in quarter 4 FY2010/2011 to RM3,009.3 million in the current quarter. The increase was mainly due to higher revenue in Petroleum and Offshore businesses.
The Group's profit before tax (excluding gains and impairment provisions for ships, loans and investments) of RM200.6 million was 17.2% higher than the RM171.2 million achieved in the preceding quarter. The higher profit in this quarter was contributed mainly by lower losses in Petroleum business from reduced operating costs.
Earnings per share dropped to 2.7 sen in the current quarter due to lower profit attributable to equity holders of the Corporation, whilst debt to equity ratio remains at 0.53 for both quarters.
Secured long term contracts in LNG and Offshore businesses together with relatively steady revenue and margins in Heavy Engineering continue to provide stable income stream to the Group.
However, market conditions for the Liner, Petroleum and Chemical businesses are expected to remain weak and will have an adverse impact on the Group's performance.