Higher rates boost MISC’s profits

Higher rates boost MISC’s profits    Malaysia International Shipping Corp. (MISC), Malaysia’s highly profitable tanker and liner shipping group, increased its pre-tax profit 62 percent to 1 billion ringgit ($270 million) in its fiscal third quarter ended Dec. 31 from 634 million ringgit in the same quarter of 2003, thanks to higher freight rates.
   “The significant improvement was the result of higher freight rates, particularly in the petroleum and liner shipping segments,” MISC said. “Also other business segments showed improvements mainly arising from higher freight rates and improved operating efficiency.”
   MISC recorded revenue of 2.9 billion ringgit in the quarter, 46.5 percent higher than the 2 billion ringgit in revenue recorded for the corresponding quarter in 2003. The company’s pre-tax profit margin as a percentage of revenue climbed to 35 percent in the latest quarter, from 32 percent in the year-earlier quarter.
   The company said its debt-to-equity ratio improved to 0.71:1 from the preceding quarter’s level of 0.77:1.
   “The prospect of the shipping industry remains positive,” MISC said. “Continued improvement in trading volume and freight rates in the petroleum, bulk and liner businesses adds to the strong performance for the current year.”