MISC optimistic of better earnings this year

by **Cals** Thu 20 Jun 2013, 00:08

Business & Markets 2013

Written by Bernama

Wednesday, 19 June 2013 18:23

KUALA LUMPUR (June 19): MISC BHD [], one of the world's leading international shipping and maritime conglomerate, is optimistic of recording better earnings and emerging stronger this year, amid the challenges ahead and the difficult operating conditions, in the shipping industry.
President/Chief Executive Officer Datuk Nasarudin Md Idris said the company would embark on consolidation this year, optimise cost and rebalance its portfolio and income mix.
"The bearish year that we had in 2011 and 2012 was largely due to the provision we made with our exit from the liner container shipping business," he told reporters after the company's annual general meeting here today.
He said following the exit from the container shipping business in June last year, "things should stabilise and be better".
During the year, MISC underwent the monetisation of one of its biggest investment asset, the Gumusut-Kakap Semi-Floating Production System, which enabled it to raise RM5.3 billion cash for the group.
However, he said freight rates and elevated bunker price, which kept operating cost high, remained a challenge to the company.
"We have to see whether freight rates in the chemical and petroleum sector will actually firm up and the supply overhang will be absorbed through the demand growth," he added.
On the refinancing of its US$750 million loan, Nasarudin said it would be concluded by the end of next month or early August.
"Currently, we are now talking to banks and they have given us an encouraging response," he added.
For the financial year ended December 31, 2012, the company posted a pre-tax profit of RM1.6 billion, up 89.2 per cent, from RM845.1 million recorded in 2011.
Revenue, however, dipped 3.2 per cent to RM9.5 billion from RM9.7 billion recorded in the previous year. -- BERNAMA