MISC expects better earnings without box trade
Malaysia’s MISC, Asia's second-biggest shipping line by market value, expects to boost earnings this year as it closes its unprofitable container-carrying business, reported Manila Bulletin.
Results will be better than last year, chief executive officer Nasarudin Md Idris told reporters in Kuala Lumpur following a shareholders meeting. He didn't elaborate. The carrier made a loss in the first quarter.
MISC will shutter its container-ship business by the end of the month and it has committed buyers for 10 of its 16 vessels, said vice-president Yee Yang Chien. The company said in November it would exit the container business and focus on tankers after the cargo-box unit made US$789 million of losses over three years because of global overcapacity and falling rates.
Liquefied natural gas carriers' rates are firm helped by demand from Japan, said Nasarudin. The market for hiring out petroleum and chemicals tankers will continue to be depressed for a few more years because of overcapacity, he said.