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MISC eyes profit after exit from container shipping

MISC eyes profit after exit from container shipping
Kuala Lumpur: MISC Berhad is expecting to return to the black in the second quarter ended 30 June 2012 after making a provision of MYR1.67bn ($529.4m) from exiting its container shipping business.

The Kuala Lumpur-listed shipping firm was drowned in the red for the two previous quarters.

“I think from now, it will be positive in terms of our profitability. If you strip out the provisions and impairments, we made MYR500m in operational profit in the last financial year ended 31 December 2011, which was only a nine-month period (due to the change in financial year-end),” said Nasarudin Md Iris, president and chief executive of MISC.

MISC posted a net loss of MYR1.5bn for the financial year 2011 and MYR465.1m for its first quarter ended 31 March 2012. The container shipping business had accumulated operational losses close to MYR3bn in the last four years.

With its exit from liner business, MISC will focus on its energy transportation and logistics businesses such as LNG shipping, offshore and tank terminal. Other segments of the company are petroleum and chemical shipping as well as the heavy engineering business.