Highlight MISC 2Q profit falls 4% to RM288m, revenue higher at RM2.54b

by **Cals** Thu 07 Aug 2014, 01:00

Highlight MISC 2Q profit falls 4% to RM288m, revenue higher at RM2.54b

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Wednesday, 06 August 2014 14:10

KUALA LUMPUR (Aug 6): MISC Bhd reported a 4% decline in second quarter net profit from a year earlier on higher ship disposal losses and an absence of impairment reversals. Profit had fallen despite higher revenue during the quarter.

In a statement to the stock exchange today, MISC said net profit fell to RM244.08 million in the second quarter ended June 30, 2014 (2QFY14) from RM300.95 million. Revenue, however, rose to RM2.54 billion from RM2.28 billion.

"The increase in group revenue was mainly due to higher revenue in heavy engineering following progress of projects in hand during the quarter. Higher earning days in LNG (liquified natural gas) business and improved freight rates in petroleum business contributed to the increase in group revenue, while a smaller fleet of operating vessels caused a decline in chemical business revenue.

"Chemical and petroleum shipping prospects remain challenging amidst a vessel oversupply market. Long-term contracts in LNG and offshore businesses continue to provide stability to the group," MISC said.

MISC's income statement showed that the firm registered a net loss on ship disposal of RM47.92 million versus a loss of RM14.26 million a year earlier. During the previous corresponding quarter, MISC recorded a net impairment reversal of RM54.34 million.

Cumulative first-half net profit climbed to RM774.48 million from RM601.37 million a year earlier. Revenue was higher at RM4.83 billion compared to RM4.66 billion.

Despite lower 2QFY14 profit, MISC plans to pay a tax-free interim dividend of four sen a share for the quarter in review,

National oil company Petroliam Nasional Bhd owns 62.67% of MISC, which in turn, holds 66.5 % in Malaysia Marine and Heavy Engineering Holdings Bhd.