KUALA LUMPUR: MISC BHD [] reported net profit of RM369.36 million in the second quarter ended Sept 30, 2010 as it benefited from the improvement in the restructured liner business and increased profitability from the heavy engineering business.

It said on Wednesday, Nov 22 the earnings were 350% higher than the RM82.06 million a year ago. Revenue fell 12.5% to RM3.085 billion from RM3.527 billion. Earnings per share were 8.3 sen compared with 2.10 sen. It declared 15 sen dividend a share.

However, pretax profit of RM416.29 million in 2Q fell 11.7% from RM471.3 million in 1Q due to higher losses from chemical business and petroleum business recording nominal loss in the quarter.

As part of the group's efforts to hedge its interest rate risks, the group had entered into interest rate swap arrangements to convert its interest exposure from floating term into fixed term.

As at Sept 30, the fair value loss of the interest rate swaps with maturity exceeding three years, for a notional value of RM4.14 billion was RM272.5 million.

During the year, the group recognised a net loss of RM87.21 million in its equity in relations to interest rate swap arrangements.