MISC shares down on vessel supply, oil demand
Saturday, 17 March 2012 | 00:00
MISC Bhd is looking at a bleaker outlook as a combination of slower economic growth and poor shipping rates continue to weigh on the company's performance this year.
The company's share price has fallen 8.39% since the beginning of the year and closed five sen lower at RM5.13 yesterday after touching an intraday low of RM5.03.
Analysts remained concerned over the company's crude tanker segment, while MISC's management has pointed out that tonnage oversupply had exerted tremendous downward pressure on freight rates for the petroleum business, which resulted in lower revenue.
An analyst said that crude oil demand from China would be lower this year as growth slowed to below 8%.
China, the world's second largest crude oil consumer, imported 253.78 million tonnes last year, a rise of 6% but far lower than 17.5% in 2010 and 13.9% in 2009.
MISC said in its outlook for 2012 that demand for shipping remained weak and that the supply-demand imbalance would continue to further depress and add volatility to petroleum and chemical freight rates.
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