Malaysia International Shipping Corporation Berhad (MISC Berhad) has seen its group profit for the fourth quarter of 2016 plunge by 33 percent mainly due to lower operating profit from LNG, petroleum and heavy engineering business segments.
The company’s net profit for the quarter ended December 31 stood at MYR 499,742, down from MYR 752,389 seen in the same quarter a year earlier, while group revenue slipped by 24 percent to MYR 2.5 billion, compared to the corresponding quarter’s revenue of MYR 3.3 billion. The decrease in revenue was mainly due to lower revenue in two business segments, namely, heavy engineering and LNG.
Operating profit of MYR 666.6 million was lower than the profit of MYR 1 billion seen in the same quarter a year earlier, mainly driven by lower revenue and higher depreciation by MYR 118.7 million, following the change in estimated useful life of LNG and Petroleum vessels beginning January 2016.
For the full year 2016, MISC Berhad reported a net profit of MYR 2.7 billion, up from MYR 2.5 billion seen in the previous year, while group revenue decreased by 12 percent to MYR 9.5 billion from MYR 10.9 billion recorded in the respective periods.
“The year 2016 saw the global shipping industry undergoing another volatile year where businesses across the Oil & Gas supply chain suffered under very difficult market conditions. Despite the prevailing challenges in 2016, MISC once again proved its resilience by turning in commendable financial and operational performances,” Yee Yang Chien, MISC President/Group Chief Executive Officer, said.
He added that MISC Berhad expects “no less than another challenging year ahead.”
*MYR 1 = USD 0.22