MISC Bhd announced Monday that pre-tax profit for its second quarter ended Sept 30, 2009, dropped 67.73 per cent to RM160.638 million from RM497.853 million in the same quarter last year. The decrease was mainly from reduced profit in the petroleum business and higher losses in the chemical business, it said in a statement to Bursa Malaysia.
The shipping company's revenue declined to RM3.527 billion from RM4.456 billion previously.
For the half-year period, MISC's pre-tax profit went down to RM434.136 million from RM1.057 billion in the same period last year.
Its revenue decreased to RM7.420 billion from RM8.105 billion previously.
The contraction of global trade continued to pose challenges to the shipping industry as reflected by falling rates in petroleum, chemical and container shipping, MISC said.
The liner business segment is expected to show further improvement in results with the company's exit from the Grand Alliance in the final quarter of this financial year, it said.
The company's earnings from long-term charters in the liquified natural gas and offshore businesses will also help to cushion it from the downward pressure on rates, it added.
In a separate statement, RHB Investment Bank Bhd announced that MISC proposed to raise RM5.2 billion through a renounceable rights issue of 743.965 million shares on the basis of one rights share for every five shares held on entitlement date to be determined later, at an issue price of RM7.00 per share.
MISC also proposed the merger of the local and foreign tranches of its shares listed on Main Market of Bursa Malaysia, and increased its authorised share capital to RM10 billion from RM5 billion currently.
RHB said that Petronas, the substantial shareholder in MISC, has given a written irrevocable undertaking to subscribe for its entitlement in full and the rest which are not subscribed or are not underwritten.
The proposals are expected to be completed in the first quarter of 2010.
The shipping company's revenue declined to RM3.527 billion from RM4.456 billion previously.
For the half-year period, MISC's pre-tax profit went down to RM434.136 million from RM1.057 billion in the same period last year.
Its revenue decreased to RM7.420 billion from RM8.105 billion previously.
The contraction of global trade continued to pose challenges to the shipping industry as reflected by falling rates in petroleum, chemical and container shipping, MISC said.
The liner business segment is expected to show further improvement in results with the company's exit from the Grand Alliance in the final quarter of this financial year, it said.
The company's earnings from long-term charters in the liquified natural gas and offshore businesses will also help to cushion it from the downward pressure on rates, it added.
In a separate statement, RHB Investment Bank Bhd announced that MISC proposed to raise RM5.2 billion through a renounceable rights issue of 743.965 million shares on the basis of one rights share for every five shares held on entitlement date to be determined later, at an issue price of RM7.00 per share.
MISC also proposed the merger of the local and foreign tranches of its shares listed on Main Market of Bursa Malaysia, and increased its authorised share capital to RM10 billion from RM5 billion currently.
RHB said that Petronas, the substantial shareholder in MISC, has given a written irrevocable undertaking to subscribe for its entitlement in full and the rest which are not subscribed or are not underwritten.
The proposals are expected to be completed in the first quarter of 2010.