Asia/Pacific News
MISC Swings to Profit in Q1
MISC Berhad posted profits of RM300.4 million ($99 million) in the first quarter of 2013 after facing a net loss of RM469.8 million ($154.8 million) in the same period last year, Malaysian news site the Edge reports.
The company's revenues for the quarter rose 7.7 percent to RM2,379.4 million ($784.1 million), an improvement the company said was mostly due to income from heavy engineering projects and the lease of two floating storage units (FSUs) of a regasification project.
Higher freight rates also helped the company's chemical business, it said, although the petroleum shipping market remains weak.
The company said it also improved its profit margin by reducing the number of operating vessels, particularly for the petroleum and chemical businesses, resulting in lower operating costs.
"Year 2013 is expected to be another challenging year for the shipping industry with weak demand growth, volatile fuel prices and excess shipping capacity," the company said.
"However, long-term contracts in LNG and Offshore businesses continue to provide stability to the Group."
The company has shifted its businesses focuses and reduced expenses over the past year to improve its bottom line.
