KUALA LUMPUR(May 16): MISC BHD [] shares fell in the afternoon session on Wednesday after the company said its net loss for the first quarter ended March 31, 2012 widened to RM465.08 million from net loss RM307.88 million a year earlier, on the back of a decrease in revenue.
At 3.29pm, MISC lost 11 sen to RM3.98 with 1.44 million shares done.
MISC said that revenue for the quarter fell 17.8% to RM2.40 billion from RM2.92 billion in 2011 due to reduction in liner business revenue from lower volume carried and lower freight rates.
Loss per share was 10.40 sen compared to loss per share of 6.90 sen previously, while net asset per shares was RM4.73.
Reviewing its performance, MISC said lower revenue in the heavy engineering business segment further contributed to the decrease in group revenue. Lower earning days from reduced demand combined with softer rates have translated to 3.5% revenue decrease in Petroleum business, it said.
“The decrease in the Group's operating profit was largely due to higher losses in Liner business and lower profit in Heavy Engineering business,” it said.
On its outlook, MISC said that compounded by continuing uncertainties in global economic growth, the prospects for the shipping industry remained challenging.
It said low freight rates, rising bunker costs and vessels supply overhang contributed to the challenges faced and did not bode well for the rest of the year, adding that cost management would be an important priority in the coming quarters.
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