Mike King, Special Correspondent | Feb 28, 2012 9:23AM EST
Malaysian shipping group MISC Berhad blames its withdrawal from container shipping for a $405 million loss in the nine-month period ended 31 December.
The company, which reported an $815.2 million profit in the same period in 2010, said it lost $475 million from withdrawing from the liner business, which became too costly as larger rivals ordered bigger ships. MISC said in November it would take until June 30 to pull out of its various trade alliances, drop vessel agreements and charter contracts and sell assets related to the liner business.
Group revenue over the nine-month period fell 9.5 percent year-over-year to $2.8 billion The conglomerate, which also has heavy engineering, offshore and liquid natural gas divisions, said higher bunker costs and depressed rates had affected all its shipping businesses.
“The demand outlook for shipping remains weak,” said the company. “The supply-demand imbalance will continue to further depress and add volatility to petroleum and chemical freight rates."
-- Contact Mike King at michael@borderline.eu.com
