Malaysian Bulk Carriers turns around to a 1Q net profit of RM47.65 mil

KUALA LUMPUR: Malaysian Bulk Carriers Bhd recorded a net profit of RM47.65 mil for the first quarter ended March 31, turning around from a net loss of RM10.76 mil in the same period last year.

Revenue, however, eased to RM52.27 mil from RM64.09 mil in 1Q19.

In a filing with Bursa Malaysia, the group said it recorded a gain of RM51.26 mil on liquidation of a subsidiary during the quarter.

It said the outlook for dry bulk trade deteriorated rapidly in the early part of this year as the Covid-19 pandemic adversely affected world economies and global industrial activities.

“While it is uncertain how long the situation will last, global commodity consumption has reduced and would continue to have a negative impact on seaborne dry bulk trade in the near term.

“However, there are some encouraging signs, particularly from China which is showing some resumption of industrial production activities,” it added.

The company said the global situation has the potential to improve in the second half of the year, adding that stimulus measures in China and elsewhere can possibly support freight rates. – May 19, 2020, Bernama

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