MISC’s 1st quarter profit down 4.5%, other units cushion liner losses
Malaysia’s MISC Berhad said its other business segments will cushion lower profits from the weakening liner shipping market this year, as it posted a pre-tax profit of Ring523.5 million ($142.2 million) for its first quarter ended June 30, down 4.5 percent from Ring548 million in the same quarter 2005.
MISC’s revenue in the quarter increased 4.6 percent to Ring2.7 billion ($738.4 million) from Ring2.6 billion a year ago.
“The decrease was mainly due to softening freight rates in liner and petroleum divisions. The improved performance of heavy engineering business and the offshore business as well as the contribution from the new LNG vessels has helped to mitigate the lower freight rates,” MISC said in a statement.
Looking forward, MISC said: “The prospect of the shipping industry is stable to softening due to the additional capacity from newbuildings and the delay in scrapping of old tonnage. However, the group’s earnings arising from existing long-term charters in the LNG, petroleum, offshore businesses and the turnaround of heavy engineering business will provide the group with stable earnings.”