MISC quarterly profit dives to RM201m

MISC Bhd pre-tax profit for the three month period ended June 30, 2011, plunged to RM200.63 million from RM471.34 million recorded in the same period last year.

Revenue declined by eight per cent to RM3.009 billion from RM3.27 billion
previously.

MISC in a statement today said the lower pre-tax profit was due to losses in
Petroleum business from weakening of freight rates and higher losses in line
business from lower lifting.


Meanwhile, the reduction in revenue resulted from lower revenue from
heavy engineering and liner business.

MISC said the higher revenue in chemical and offshore business helped to
cushion the impact of revenue reduction in heavy engineering and liner business.

The company had on March 2 this year changed its financial year end from
March 31 to December 31, with the new financial year to end at a shorter
nine-month period from April 1, 2011 to Dec 31, 2011.

On its prospects ahead, MISC said the company managed to secure long-term
contracts in the liquefied natural gas and offshore business while the
relatively steady revenue and margins in heavy engineering are expected to
continue to provide stable income to the group.

Nevertheless, it said market conditions for the liner, petroleum and
chemical businesses are expected to remain weak and will have an adverse impact on the company's performance. -- Bernama