MISC Group Financial Results for the Second Quarter Ended 30 June 2015
  • Group revenue of RM2,600.5 million and profit before taxation of RM772.6million were higher than the quarter ended 30 June 2014 (“corresponding quarter”) and the quarter ended 31 March 2015 (“preceding quarter”).
  • Group revenue for the 6-months ended 30 June 2015 of RM5,090.7 million was higher than the RM4,829.2 million revenue for the 6-months ended 30 June 2014 ("corresponding period").

MISC is pleased to announce its financial results for the second quarter ended 30 June 2015 with group revenue for the quarter of RM2,600.5 million being 2.4% higher than RM2,538.6 million in the corresponding quarter.

The increase in Group revenue was mainly due to improved freight rates in Petroleum business, revenue recognised from an Engineering, Procurement and Construction (“EPC”) project in the current quarter and finance lease income contribution of a Floating, Production, Storage and Offloading (“FPSO”) unit which commenced in September 2014.

Meanwhile, a smaller fleet of operating vessels in Chemical business, lower earning days in LNG business and different phases of project construction in Heavy Engineering caused a decline in revenue of the respective businesses in the current quarter.

Group operating profit of RM674.2 million was 76.3% higher than the corresponding quarter's profit of RM382.3 million, mainly from higher revenue in Petroleum and Offshore businesses coupled with lower operating costs from a smaller fleet of operating vessels in Chemical business. However, LNG business recorded lower operating profit from lower revenue while additional provision for cost to complete an ongoing project caused a decline in Heavy Engineering operating profit.

Group profit before tax of RM772.6 million was higher than the RM344.6 million profit in the corresponding quarter, mainly due to higher performance of Petroleum business in the current quarter.

For the second quarter ended 30 June 2015, the Board of Directors is also pleased to declare an interim tax exempt dividend of 7.5 sen per share, payable on 2 September 2015.

Group revenue for the cumulative 6-months ended 30 June 2015 of RM5,090.7 million was 5.4% higher than the RM4,829.2 million revenue for the cumulative 6-months ended 30 June 2014 ("corresponding period").

Improved freight rates in Petroleum business, revenue recognised from an EPC project in the current period and finance lease income contribution of an FPSO unit which commenced in September 2014 were the main contributors to the increase in Group revenue. However, a smaller fleet of operating vessels in Chemical business, lower earning days in LNG business and different phases of project construction in Heavy Engineering caused a decline in revenue of the respective businesses in the current period.

Group operating profit of RM1,142.4 million was 28.9% higher than RM886.6 million in the corresponding period, mainly from higher revenue in Petroleum and Offshore businesses coupled with lower operating costs from a smaller fleet of operating vessels in Chemical business. However, LNG business recorded lower operating profit from lower revenue while additional provision for cost to complete an ongoing project caused a decline in Heavy Engineering operating profit.

The financial performance for the Group for the remaining quarters of 2015 will continue to be supported by secured recurring income from a portfolio of long term contracts in the LNG shipping and Offshore business segments. The strength in the Petroleum shipping segment enjoyed in the first half of 2015 is likely to be carried into the second half of the year, barring any material cutback in global oil production. Full year financial performance of the Petroleum shipping segment is expected to show a marked improvement over the performance of 2014. However, chemical shipping prospects still remain mixed.

The Heavy Engineering business is currently active in various stages of the bidding process for several potential projects. Aggressive competition is expected for selected projects with participation of regional and international companies. Operationally, a lesser number of ongoing projects are in progress as compared to the previous financial year. There is still residual revenue and profit to be recognised from some of the recently completed or delivered projects subject to approval of outstanding variation orders by the respective clients.



For media inquiries, please contact :



Mdm. Asmalinda Bt. Yaacob
General Manager
Corporate Affairs & Customer
Relationship Management (CACRM)

Tel: 03-2275 2701

Email: asmalinda@miscbhd.com

or

Ms. Maisara Noor Ahmad
Manager, Corporate Communications
Corporate Affairs & Customer
Relationship Management (CACRM)

Tel: 03 – 2275 3327

Email: maisara.noorahmad@miscbhd.com