MISC Bhd reported a 38.6 per cent drop in its pre-tax profit of RM191.627 million for the third quarter ended Dec 31, 2009 from RM312.146 million in the corresponding quarter of 2008.
Its revenue of RM3,047.1 million for the quarter was 17.2 per cent lower than RM3,679.2 million recorded in the previous corresponding quarter.
In a statement today, MISC said the reduction was mainly due to lower profit in the Petroleum business and higher losses in the Liner and Chemical businesses.
The group’s cost reduction efforts have led to lower operating costs of revenue especially in cargo costs, charter hire payable and slots payable, it added.
For the nine-month period ending Dec 31, 2009, MISC said its pre-tax profit dropped to RM625.762 million from RM1.369 billion in the corresponding period of 2008, while revenue fell to RM10.468 billion from RM11.784 billion.
On the industry, it said it would continue to be challenged by low demand and excess tonnage.
The recent pick-up in demand has absorbed some of the excess tonnages resulting in freight rates rebounding from 2009 downtrend.
The recovery in freight rates is expected to continue over the short to medium term, it said.
MISC’s earnings for the medium term will continue to be underpinned by the long term charters in its LNG and offshore businesss as well as growth in its heavy engineering division.
Source: Malaysian Insider