MISC Group Financial Results for the Financial Year Ended 31 December 2014

MISC is pleased to announce its financial results for the financial year ended 31 December 2014.

PERFORMANCE OF CURRENT QUARTER AGAINST CORRESPONDING QUARTER

Group revenue for the quarter ended 31 December 2014 of RM2,286.8 million was 6.8% higher than RM2,142.0 million revenue in the corresponding quarter.

The increase in Group revenue was mainly due to improved freight rates in Petroleum business and commencement of finance lease of FPSO Cendor in the current quarter. However, Chemical business recorded lower revenue due to a smaller fleet of operating vessels while different phases of project construction caused a decline in Heavy Engineering revenue.

Group operating profit of RM469.0 million was 16.1% higher than the corresponding quarter's profit of RM404.0 million. The increase in operating profit was mainly driven by the increase in revenue and lower operating costs.

Group profit before tax of RM1,027.4 million was 5.8% lower than the corresponding quarter's profit of RM1,090.3 million, mainly from higher impairment provisions in the current quarter.

YEAR ON YEAR

Group revenue for the financial year ended 31 December 2014 of RM9,296.3 million was 3.6% higher than RM8,972.4 million revenue for financial year ended 31 December 2013.

The increase in Group revenue was primarily from improved freight rates in Petroleum business, commencement of finance lease of FPSO Cendor in the current year and higher earning days in LNG business. However, a smaller fleet of operating vessels in Chemical business and lower revenue recognized by Heavy Engineering in the current year, from different phases of project construction, partially negated the increase in Group revenue.

Higher revenue and lower operating costs from a smaller fleet of operating vessels contributed to a 18.9% increase in Group operating profit from RM1,841.7 million profit in prior year to RM1,548.3 million in the current year.

Group profit before tax of RM2,410.3 million was higher than RM2,231.5 million in the prior year following improvement in operating profit.

PROSPECTS

The financial performance for the Group in 2015 will continue to be underpinned by secured recurring income from a portfolio of long term contracts in the LNG shipping and Offshore business segments.  Despite the severe drop in global oil prices in the past few months, Petroleum shipping segment has found strength from sustained global oil production. Barring any material cutbacks in global oil production, the recent strength in petroleum shipping could be sustained for the year. Market conditions for Chemical shipping is expected to be relatively unchanged compared to 2014.

However, it will be a challenging year for the oil and gas services segment such as fabrication and construction, given the reduction in capital and operating expenditures by major oil companies in a low oil price environment.  The Group’s Heavy Engineering business will draw on its present order book to sustain profitability during the year in conjunction with other cost management and operational excellence initiatives.

Further details on the MISC Group can be found at www.misc.com.my 

For further media enquiries for the MISC Group, kindly contact:
 
Puan Asmalinda Yaacob, 
General Manager
Group Corporate Affairs & Customer Relationship Management, MISC Berhad
Tel: 03-2275 2526
Fax: 03-2275 2888
E-mail:
asmalinda@miscbhd.com