MISC Berhad Continues to Sustain a Dynamic Performance for Financial Year 2014 and Q1 2015

Highlights of Financial Year 2014

Recorded RM9.3 billion in Revenue & RM1.84 billion Operating Profit for FY 2014

MISC Berhad closed the Financial Year Ended (FYE) 2014 with a revenue of RM9,296.3 million which is equivalent to an increase of 3.6% against the preceding year, driven primarily by improved freight rates and commencement of operations of the Floating Production, Storage and Offloading (FPSO) Cendor.

These positive developments, coupled with effective cost management from a smaller fleet of operating vessels led to the increase of the Group Operating Profit at RM1,841.7 million which was higher by 18.6% compared to the previous financial year at RM1,552.6 million.

Higher Profit Before Tax & Earnings Per Share

Following the improvement in the Group Operating Profit, its Profit Before Tax from continuing operations increased to RM2,410.3 million.

This represents an increase of 8.2% from RM2,227.7 recorded in the previous year, mainly powered by contributions from our LNG, Offshore and Petroleum tanker businesses.

Notwithstanding, its Earnings Per Share also improved from 46.7 sen in the 2013 fiscal year to 49.4 sen in 2014 due to the increase in the profit attributable to the equity holders of the Company which was 5.7% higher in 2014 at RM2,204.3 million against RM2,085.4 million recorded in 2013.

Highlights of Quarter One (Q1) 2015

8.7% growth in Revenue from the previous corresponding Quarter

The Group attained RM2,490.3 million in revenue which translated to an increase of 8.7% from RM2,290.5 million achieved in the corresponding quarter.

The increase continues to be fuelled by improved freight rates in Petroleum business and commencement of finance lease income of FPSO Cendor. However, a smaller fleet of operating vessels in Chemical business and lower earning days in LNG business moderated the increase in Group revenue.

RM468.2 million Group Operating Profit & RM511.9 million Group Profit Before Tax

Group Operating Profit of RM468.2 million was 7.2% lower than the corresponding quarter's profit of RM504.3 million, mainly due to lower revenue in LNG business and additional costs incurred on some Heavy Engineering projects.

However, higher profit in Offshore business and lower losses in Chemical business helped to alleviate the decrease in Group Operating Profit.

Group Profit Before Tax of RM511.9 million was 3.0% lower than the RM527.9 million profit in the corresponding quarter, mainly due to lower operating profit in the current quarter.

Outlook for 2015

The financial performance for the Group in 2015 will continue to be propelled by secured recurring income from a portfolio of long term contracts in the LNG shipping and Offshore business segments.

The outlook for Petroleum shipping segment is positive given the improved market environment and sustained demand for global oil production.

Chemical shipping prospects remain mixed in view of uncertainty in demand as a result of slower growth in certain economic zones.

“We are pleased to start the year with a positive revenue growth although the year ahead is expected to be challenging, particularly due to the temperamental market conditions. Nevertheless, we remain cautiously optimistic on long-term prospects, and we are focused on our strategic plans towards sustainable growth,” said Mr. Yee Yang Chien, President / Chief Executive Officer (CEO) of MISC Berhad.

He added, “As we continue to explore potential growth opportunities and augment our service offerings, we are steadfastly committed towards developing our greatest asset, the people of MISC, through various initiatives that will continually enhance their skill set and capability as we forge ahead to be the preferred provider of world-class maritime transportation and logistics services.”