World News
MISC Revenue Down, Profits Up in 2012
One-time gains from the leasing of two floating storage units and from the divestment of interest in a floating storage system allowed Malaysia's MISC Berhad (MISC) to increase its profit in 2012 by 75.2 percent to $518.4 million despite a 4.2 decline in revenue, the company reports.
MISC made $3.1 billion in 2012, down from $3.2 billion in 2011.
For the fourth quarter, it said revenue stayed relatively flat due to soft freight rates for petroleum, but "lower operating costs, particularly bunker and charter hire expenses" helped boost its profitability.
The company said it expects 2013 to be "another tough year for the shipping industry with weak demand, volatile fuel prices and low freight rates," but it says long-term contracts in its liquefied natural gas (LNG) and offshore businesses will help stabilise the group's results.
The company, which ended its liner business in June 2012 after two consecutive quarters of losses, has struggled with its stock price.
Last month, Malaysian state-owned energy company Petroliam Nasional Bhd. (Petronas) offered to take the company private by buying the 37 percent of the company it doesn't already own.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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