MISC posts huge jump in full year profitMISC posts huge jump in full year profit

Net profit for the year ended 31 December 2013 stood at MYR2.09bn ($630.71m), soaring from a gain of MYR770.25m in 2012, MISC announced.

The Kuala Lumpur-listed shipping company posted full year revenue of MYR8.97bn, down marginally from MYR9.05bn in 2012.

The drop in revenue was largely due to lower contributions in heavy engineering as projects in hand are nearing completion. Additionally, petroleum business recorded lower revenue from smaller fleet of operating vessels and cold layup of a few vessels.

MISC took an impairment hit of MYR97.9m compared to a larger impairment loss of MYR295.56m in 2012. The increase in profit was also due to the recognition of a one-time gain on disposal of floating production system Gumusut Kakap through finance lease in 2013.

Looking ahead, MISC noted that chemical and petroleum shipping prospects remain challenging amidst a vessel oversupply market. However, long term contracts in LNG and offshore business continue to provide stability to the group, it added.