KUALA LUMPUR (Feb 22): MISC BHD [] suffered net loss of RM1.74 billion in the third quarter ended Dec 31, 2011 compared with net profit of RM1.38 billion a year ago due to recognition of one-off provisions totalling RM1.45 billion.
It said on Wednesday the provisions were part of the group's planned exit from the liner business. The provisions included impairment of assets, withdrawal from trade alliances and termination of related services and operational contracts.
“Poor market conditions combined with slower trading activities in the shipping segments have led to additional impairment losses totalling RM260.0 million being recognised by the group for the quarter,” it said.
MISC said its revenue for the third quarter was RM2.878 billion, down 5.5% from RM3.045 billion a year ago. Loss per share was 39.10 sen compared with earnings per share of 30.90 sen.
“The decline in group revenue for the current quarter was mainly due to lower revenue in Liner business following withdrawal from a few trade services. Depressed aframax freight rates in petroleum business and novation of certain heavy engineering projects to a jointly controlled entity further contributed to the decrease in revenue,” it said.
For the nine-month period, MISC recorded a net loss of RM1.481 billion due to the recognition of one-off provisions totalling RM1.452 billion following its recent decision to exit from the liner business.
“Excluding liner provisions, the group also recognised RM287.2 million impairment losses on its vessels on the back of poor shipping market,” it said. Its revenue for the nine months fell 9.5% to RM8.506 billion from RM9.401 billion.
It said on Wednesday the provisions were part of the group's planned exit from the liner business. The provisions included impairment of assets, withdrawal from trade alliances and termination of related services and operational contracts.
“Poor market conditions combined with slower trading activities in the shipping segments have led to additional impairment losses totalling RM260.0 million being recognised by the group for the quarter,” it said.
MISC said its revenue for the third quarter was RM2.878 billion, down 5.5% from RM3.045 billion a year ago. Loss per share was 39.10 sen compared with earnings per share of 30.90 sen.
“The decline in group revenue for the current quarter was mainly due to lower revenue in Liner business following withdrawal from a few trade services. Depressed aframax freight rates in petroleum business and novation of certain heavy engineering projects to a jointly controlled entity further contributed to the decrease in revenue,” it said.
For the nine-month period, MISC recorded a net loss of RM1.481 billion due to the recognition of one-off provisions totalling RM1.452 billion following its recent decision to exit from the liner business.
“Excluding liner provisions, the group also recognised RM287.2 million impairment losses on its vessels on the back of poor shipping market,” it said. Its revenue for the nine months fell 9.5% to RM8.506 billion from RM9.401 billion.
