Kuala Lumpur: MISC, Malaysia’s top shipping line which is in the process of possibly being privatized by lead shareholder Petronas, managed to turn its financials into positive territory for 2012. Largely thanks to a one off gain following lease commencement of two floating storage units (FSUs) for an LNG regasification project and the realisation of 50% intercompany profit following the divestment of 50% equity interest in Gumusut-Kakap Semi Floating-Production System,
MISC was able to report a $324.6m net profit, a significant improvement compared to the $487m loss incurred in 2011. The swing to profit was achieved despite a 4.2% contraction in revenues to $3.1bn. MISC described the shipping environment as “challenging”.
“Year 2013 is expected to be another tough year for the shipping industry with weak demand, volatile fuel prices and low freight rates,” the company noted. [26/02/13]