Friday 29 Mar 2024
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KUALA LUMPUR (May 27): Ahead of its announcement on its earnings for the first three months of the year, Malaysian Bulk Carriers Bhd (Maybulk) warns that its performance will be affected by the weaker earnings reported by its 21.23%-owned associate, PACC Offshore Services Holdings Ltd (POSH).

POSH’s net profit in the first quarter ended March 31, 2015 (1QFY15) plunged 99% to S$21,000 (RM56,706), from S$36.67 million (RM99.02 million) in the previous corresponding quarter.

“[It is] obviously going to affect…as far as the share prices, relative to what we invested, and the dividends [that we get], are likely to be reduced. These are the two negatives we see,” Maybulk chief executive officer Kuok Khoon Kuan told reporters, after Maybulk’s annual general meeting today.

“There will be dividends [from POSH], but lesser,” he added.

Based on Maybulk's annual report for the year ended Dec 31, 2014 (FY14), POSH contributed RM36.73 million to the group's results for the year, as opposed to Maybulk’s loss-making bulk segment.
 
Maybulk posted a net profit of RM12.15 million and revenue of RM255.72 million in FY14.

As at 3.06 pm, Maybulk (fundamental: 1.45; valuation: 0.9) was down 2 sen or 1.83% at RM1.07, giving it a market capitalisation of RM1.07 billion.

POSH was trading unchanged at 46.5 (Singapore) cents, with a market capitalisation of S$864.3 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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