Malaysia-listed shipping company MISC has posted a group operating profit of MYR1.8 billion (USD500 million), representing an 18.6% year-on-year increase for the financial year ending in 2014.
The company’s revenue in 2014 saw an upward trajectory of 3.6% year-on-year to MYR9.3 billion, driven chiefly by improved freight rates and the start of operations of the floating production, storage, and offloading vessel Cendor. The higher earnings were coupled with effective cost management from a smaller fleet of operating vessels.
The company’s profit before tax rose by 8.2% to MYR2.4 billion in 2014 from MYR2.2 billion the preceding year. This upward trend was powered by contributions from its liquefied natural gas (LNG), offshore, and petroleum tanker businesses.
MISC CEO and president Yee Yang Chien told IHS Maritime that the company is “nursing back to health” with robust performance for the financial year 2014 and he expects the growth to continue in “all aspects” throughout 2015.
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“We are confident that we can maintain the performance for financial year 2014 toward 2015, with growth in key performance indicators set by the company,” he added.
Yee said MISC’s LNG business segment is unaffected by the depressed market freight rates as most of its ships are locked in to long-term time charters. The majority are on 10-year time charters, with some on 20-year contracts.
“We have a good mix of LNG vessels locked in for long-term time charters that generate predictable revenue for the company,” Yee said. “However, [the company’s] petroleum business segment is more challenging but remains positive for us now. Meanwhile, the performance of the chemical segment remains mixed and is driven and affected by the world’s major economies.”