Firm shipping rates lift MISC Q2 profit

14 Nov, 2004

Malaysia International Shipping Corporation, the world's largest carrier of liquefied natural gas, said on Wednesday its second-quarter profit rose 27 percent from a year ago, short of some analysts' forecasts. Profits were driven by higher shipping rates, the firm said. Freight rates have surged 50 percent in the last six months on rising global trade, particularly with China, and a tight supply of ships.
Tanker rates have also soared as oil exporters boost output to maximise profits on high crude prices, increasing demand for transport.
MISC, which owns and operates 18 LNG tankers with a combined capacity of 2.0 million cubic metres - just over 10 percent of global LNG capacity - has also gained from increased energy demand, driven by energy-guzzling China and India, and falling gas output in the United States and Europe.
Belgium's Exmar and Norway's Golar LNG are among the other major LNG carriers in the region.
Malaysia's fourth-biggest listed firm, valued at $7 billion, said net profit in its fiscal second-quarter to September 30 rose to 621.49 million ringgit ($163.55 million) from 491.06 million ringgit for the same 2003 period, well below the average forecast of 700 million ringgit provided by three analysts surveyed by Reuters.
MISC said second-quarter earnings were affected by higher losses incurred by its unit, Malaysia Shipyard & Engineering Sdn Bhd.

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