Maybulk posts record high profit of RM406 mil in 4QFY18 boosted by one-off divestment gain

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KUALA LUMPUR (Feb 25): Malaysian Bulk Carriers Bhd (Maybulk) posted a record high quarterly net profit of RM406.44 million for the fourth quarter ended Dec 31, 2018 (4QFY18), boosted by gain on disposal of associate and reduced loss from associate.

In contrast, Maybulk posted a net loss of RM73.17 million in the previous corresponding quarter.

“The group’s interest in the associate PACC Offshore Services Holdings was disposed by way of a renounceable restricted offer for sale that was announced on April 2, 2018, and completed on Oct 25, 2018, with a gain of RM265.93 million,” said Maybulk in its quarterly result announcement to Bursa Malaysia.

The group’s investment holding segment reported a profit of RM247.29 million for the year, compared to a loss of RM216.11 million a year earlier, according to the filing.

Quarterly revenue fell 3.5% to RM69.04 million from RM71.52 million.

For the full-year ended Dec 31, 2018, its net profit stood at RM263.84 million — highest level since FY08, versus its net loss of RM134.95 million reported a year earlier, while revenue contracted 12.3% to RM238.97 million from RM272.58 million.

The group said its dry bulk segment reported a lower loss of RM9.5 million in FY18 compared with a loss of RM21.39 million in FY17 due to higher charter rates, pointing out that it achieved better results despite a reduced fleet size.

Maybulk said sentiments in the freight market have turned bearish amid the slowing global economy, which has impacted the movements of major dry bulk commodities, such as iron ore and coal.

However, it noted the dry bulk fleet is expected to grow at a lower 3% this year, which should then provide a better resilience to overall freight market fundamentals.

Maybulk closed unchanged at 59.5 sen, giving it a market capitalisation of RM595 million.