Malaysia’s MISC Berhad today announced its full financial year results for the 9-month period ended 31 December 2011.
The Group recorded pre-tax loss of RM1,222.0 million for the 9- month period as compared to profit of RM2,466.2 million in the corresponding period of the last financial year. The results were achieved on the back of a decrease in Group revenue to RM8,505.9 million from RM9,401.3 million.
The Group also announced a pre-tax loss of RM1,651.9 million for the quarter ended 31 December 2011 from pre-tax earnings of RM1,579.3 million in the previous corresponding quarter. The Group revenue of RM2,878.8 million was 5.5% lower from RM3,045.6 million in the previous corresponding quarter.
The full financial year’s pre-tax loss of RM1,222.0 million was mainly due to recognition of one off provision amounting to RM1,436.6 million consequent to the Group’s planned exit of Liner business. The provision includes impairment of assets, termination of leases and contractual obligations and employees related costs. The Group has also recognised assets impairment provisions of RM293.4 million during the year.
The Group reported a full 9-month operating profit of RM599.4 million, a 54.9% decline when compared to RM1,329.2 million operating profit reported in the corresponding 9-month period of the last financial year.
Depressed freight rates in petroleum, lower liftings in liner business and higher operating costs, particularly bunker, has contributed to the decline in the Group performance.
The demand outlook for shipping remains weak. The supply-demand imbalance will continue to further depress and add volatility to petroleum and chemical freight rates. However, the Group’s recent decision to cease its loss making liner business operations is expected to benefit the Group in the medium to long term. Meanwhile, LNG, Offshore and Heavy Engineering businesses will continue to provide stability to the Group’s earnings.
1 Malaysian ringgit = 0.330469 U.S. dollars
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LNG World News Staff, February 22, 2012; Image: MISC