Asia/Pacific News
MISC Profits Despite Drag from Shipping
In its first full quarter after eliminating its liner business, Malaysia's MISC Berhad [3816.KL] shipping line said it made a pre-tax profit of RM304.5 million ($100 million) on revenues of RM2.3 billion ($755 million) as liquefied natural gas (LNG) and offshore businesses provide stability despite a difficult shipping environment.
Revenue from continuing operations was up 4.5 percent in the third quarter ended September 30, 2012, compared with the same period last year, thanks to higher revenue in heavy engineering and the development of new projects, which offset reduced revenues in the petroleum and chemical businesses.
Profit from continuing operations fell 39.1 percent, mainly due to higher than expected expenses for a conversion project within the heavy engineering division.
"The shipping industry landscape continues to remain challenging amidst cautious economic sentiments globally," the company said.
"However, long-term contracts in LNG and Offshore businesses continue to provide stability to the Group."
As it looks to the future, the company said a priority will be increasing cost efficiency to combat low freight rates and an oversupply of tonnage in the shipping market.
MISC ended its liner business in June and took a hit to its bottom line in the two previous quarters as it prepared for that move.
