MISC Bhd's pre-tax profit for the second quarter ended June 30, 2012, rose to RM458.5 million from RM379.6 million in the
same period of 2011.

Revenue, however, slightly decreased to RM2.486 billion from RM2.59 billion, said Malaysia's leading international shipping line, in a filing to Bursa Malaysia today.

The higher pre-tax profit was driven by an improved performance in the offshore business and higher contributions from the tank terminal (TT) segment.

It was also due to lower losses in the petroleum business following the one-off settlement received from an early redelivery of vessels on time charter contracts, MISC said.

The company noted the decline in revenue because of lower income in petroleum and chemical businesses following lower earning days and softer petroleum freight rates.

Year-on-year, Group pre-tax profit stood at RM622.4 million, 58.1 per cent higher compared to RM393.8 million in 2011, driven by higher profits in offshore and TT businesses and lower losses in the petroleum business.

Revenue fell by 6.1 per cent to RM4.791 billion against the RM5.102 billion received last year.

"Lower revenue in the heavy engineering business and softer petroleum freight rates were the main contributors to the decline in group revenue," MISC said.

Despite lower revenue, the Group's operating profit grew by 9.6 per cent to RM883.0 million from RM805.5 million, mainly from lower losses in petroleum business, coupled with improved performance of offshore business.

In a separate statement, on prospects, MISC said the shipping industry has not shown signs of recovery.

"Vessel overcapacity continues to put petroleum and chemical freight rates under pressure over the short to medium term.

"However, long-term contracts in liquefied natural gas and offshore businesses, will continue to cushion the Group from fluctuations in the petroleum and chemical trades," it added. -- Bernama