MISC 3Q profit up 17% to RM471m on lower finance, operating costs

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KUALA LUMPUR (Nov 7): MISC Bhd said its net profit rose 17.4% to RM470.8 million in the third quarter ended September 30, 2014 (34QFY14) against RM401.02 million a year earlier.

In a filing with Bursa Malaysia today, MISC said profit growth was underpinned by lower operating cost from a smaller fleet of operating vessels. Lower finance cost had also supported bottom line growth.

MISC's income statement showed that 3QFY14 finance cost had almost been halved  to RM56.29 million from RM104.72 million a year earlier.

MISC, a 62.7%-owned subsidiary of Petroliam Nasional Bhd (Petronas), however said its (MISC) quarterly revenue only grew 0.46% to RM2.18 billion from RM2.17 billion previously.
 
MISC said the marginal rise came on higher revenue from its heavy engineering unit following progress of projects in hand. MISC's undertakes its heavy engineering operations via 66.5%-owned subsidiary Malaysia Marine and Heavy Engineering Holdings Bhd.

Higher earning days in its liquified natural gas shipping business besides improved freight rates in its petroleum shipping unit also contributed to revenue.

It also reported that a smaller vessel fleet had led to a decline in chemical shipping revenue.

For the cumulative nine-month period, MISC's net profit rose to RM1.25 billion from RM1 billion a year earlier.  Revenue climbed to RM7 billion from RM6.83 billion.

On prospects, MISC expects chemical and petroleum shipping to remain challenging amid a vessel oversupply market.

"However, long-term contracts in LNG and offshore businesses continue to provide stability to the group," MISC said.

At 12.30pm, MISC shares closed 12 sen or 1.7% higher at RM7.37, giving it a market capitalisation of RM32.9 billion.