MISC Group Financial Results
MISC is pleased to announce its financial results for the first quarter ended 31 March 2014.
PERFORMANCE OF CURRENT QUARTER AGAINST CORRESPONDING QUARTER
Group revenue for the quarter ended 31 March 2014 of RM2,290.5 million was 3.7% lower than the RM2,379.5 million revenue of the corresponding quarter ended 31 March 2013.
The reduction in Group revenue was attributed to lower value of outstanding progress billings from projects that are nearing completion while new projects are at early stage of the contracts in Heavy Engineering business. Furthermore, Chemical business recorded lower revenue from smaller fleet of operating vessels resulting from disposal of some assets. However, higher earning days in LNG business and improved freight rates in Petroleum business mitigated the decrease in Group revenue.
Group operating profit of RM504.3 million for the quarter ended 31 March 2014 was 29.0% higher than the RM391.0 million profit recorded in the corresponding quarter. The increase in operating profit was mainly due to improved freight rates and higher volume of lightering activities in Petroleum business.
Group profit before tax of RM527.9 million was 51.2% higher than the RM349.2 million profit in the corresponding quarter, mainly due to improved freight rates and higher volume of lightering activities in Petroleum business. Higher share of profit from joint ventures, especially Gumusut-Kakap Semi Floating Production System (L) Limited ("GKL"), following commencement of its finance lease income in June 2013 also contributed to the increase in profit.
Chemical and Petroleum shipping prospects remain challenging amidst a vessel oversupply market. Long-term contracts in LNG and Offshore businesses continue to provide stability to the Group.
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