Friday, November 25, 2011

MISC shares fall in early trade after earnings slump

KUALA LUMPUR (Nov 25): MISC BHD [] shares fell in early trade on Friday after the company said it expects to incur losses in current financial year ending Dec 31, 2011 after it decided to exit its liner business operations, as the expected one-off costs to the income statement are estimated to be approximately US$400 million.

At 9.10am, MISC fell 11 sen to RM6.02 with 89,400 shares traded.

The company cautioned about its earnings for the year when reviewing its financial performance for the second quarter ended Sept 30, 2011.

MISC said its 2Q net profit fell 61.8% to RM140.96 million from RM369.36 million a year earlier, due mainly to depressed aframax freight rates in petroleum business, lower liftings in the liner business and high bunker costs.

The company said its revenue for the quarter fell 15.1% to RM2.62 billion from RM3.08 billion.

On Thursday, MISC said it had decided to exit from the liner (container shipping) business operations due to the current challenging conditions and high operating cost environment.

The company said that its liner business suffered a total financial loss of US$789 million over the past three financial years which had impacted the overall financial performance of MISC.

MISC said the drastic shifts in the industry landscape were challenging the validity of today's operating models.


No comments:

Post a Comment