Asia/Pacific News
MISC Returns To Profit, Ends Liner Business
Malaysian international shipping line MISC Berhad (MISC) has announced a Q2 2012 net profit of RM 436.7 million (USD $139.63 million) for the period ending June 30, 2012, marking a return to profitability after two consecutive quarters of losses.
Revenue from continuing operations was up 4.0% to RM 2.48 billion ($0.79 billion) compared to the same period last year, which MISC attributed to lower earning days and freight rates in the Chemical and Petroleum businesses.
Profit before tax from continuing operations was up over 20% to RM 458.5 million ($146.36 million), which MISC said was mainly due to higher contributions from the Offshore and Tank Terminal businesses.
As of June 2012 MISC said it has now ceased its Liner business, with costs preparing for this move behind the losses in the preceding two quarters.
Looking ahead, the company said that the shipping industry has yet to show signs of recovery with vessel overcapacity continuing to put petroleum and chemical freight rates under pressure over the short to medium term.
MISC said it did, however, expect long-term contracts in LNG and Offshore businesses to "cushion" the fluctuations in the petroleum and chemical trades.
