KUALA LUMPUR (Nov 28): Malaysian Bulk Carriers Bhd (Maybulk) reported a net profit of RM23.02 million or 2.3 sen per share in its third quarter ended Sept 30, 2018 (3QFY18) -- its first quarterly profit in four years -- versus a net loss of RM17.82 million or 1.78 sen per share last year.

Maybulk attributed the improved quarter to a positive net change in onerous contracts provision of RM23.74 million, despite an 11% fall in revenue to RM58.18 million from RM65.41 million in the year-ago quarter, as shown in a filing with Bursa Malaysia today.

However, in the cumulative nine months ended Sept 30, 2018 (9MFY18), Maybulk's net loss widened to RM142.6 million from RM61.78 million last year, as revenue retreated 15% to RM169.93 million from RM201.06 million.

The dry bulk segment reported a profit of RM13.44 million in 9MFY18, compared with a loss of RM21.74 million in 9MFY17.

“Excluding onerous contracts, dry bulk segment’s loss was RM10.297 million in 9MFY18, a 53% improvement compared with a loss of RM21.74 million in 9MFY17, mainly due to improved charter rates (9MFY18: US$10,009 per day versus 9MFY17: US$7,715 per day),” Maybulk said, adding that this was achieved in spite of a reduced fleet size.

In addition, one wholly-owned and three jointly-owned bulkers were sold in 9MFY18, it added.

Moving forward, Maybulk said the dry bulk freight has improved over the last nine months and is expected to stay favourable in the near term, which will benefit the group, while global growth is expected to remain stable.

It also updated that the group has completed the divestment of PACC Offshore Services Holdings Ltd in October and obtained proceeds of RM251 million. This, it added, "has significantly improved the group’s liquidity and enabled the group to better position itself in an improving dry bulk shipping market".

Maybulk’s shares closed three sen or 5.31% at 59.5 sen today, for a market capitalisation of RM595 million. Year-to-date, the counter has fallen 27% from 81.5 sen.