MISC FY13 earnings cross RM2b, dividend 5 sen (Update)

KUALA LUMPUR: National shipping company MISC Bhd reported net profit of RM2.08bil in the financial year ended Dec 31, 2013, a jump of 170.7% from RM770.24mil in FY12, boosted by bigger share of profit from joint ventures especially Gumusut-Kakap Semi-Floating Production System (L) Ltd.

It said on Thursday its revenue was slightly lower at RM8.97bil, down 0.9% to RM8.971bil from RM9.050bil a year ago. It proposed a dividend of 5.0 sen a share.

MISC said the lower revenue was due to the heavy engineering as projects in hand were nearing completion. Also the petroleum business recorded lower revenue from smaller fleet of operating vessels and cold lay-up of a few vessels.

However, higher revenue in the liquefied natural gas and offshore business mitigated the decline in group revenue. Higher charter rates and earning days of the LNG vessels and full year recognition of two floating storage units had led to an increase in LNG business revenue.

In the fourth quarter, its earnings rose 50.1% to RM1.08bil from RM721.11mil a year ago, boosted by the bigger share of profit from Ltd from the recognition of a one-off gain on disposal of Gumusut Kakap Floating Production System through a finance lease in the quarter.

Its revenue, however, declined to RM2.141bil, down 7.1% to RM2.306bil a year ago. Earnings per share were 24.30 sen compared with 16.10 sen.

On the outlook, it said the chemical and petroleum shipping prospects remain challenging amid vessel oversupply market. Long-term contracts in LNG and offshore businesses would continue to provide stability to the group.