MISC returns to profit after exiting liner business

Turning around from the losses of the previous two quarters when it was hurting from the pain of divesting its liner business, Malaysian national carrier MISC saw second quarter profit more than double to MYR436.7m from MYR 189.9m previously, Seatrade Asia online reports.

Revenue fell 4% to MYR2.49bn from MYR2.59bn in the previous corresponding period due to lower revenue in the petroleum and chemical businesses on fewer earning days and softer petroleum freight rates. The business saw an 11.5% drop in revenue.

MISC added however that these lower revenues have been tempered by commencement of the new MOPU 2 offshore project in August 2011 and development of new heavy engineering projects, combined with higher progress of existing heavy engineering projects. Losses from the liner business have also been eliminated. As a result second quarter operating profit rose 41.2% to MYR553.5m.

MISC recognised a loss of MYR45.0m from these discontinued operations in the second quarter. The group also took some MYR43.4m in impairment charges onto its books and accepted a MYR12.5m loss on disposal of vessels.

For the first half, revenue fell 6.1% to MYR4.79bn from MYR5.10bn. Operating profit grew by 9.6% to MYR883.0m, helped by lower losses in the petroleum business, combined with improved performance of the offshore business.