In QE31/12/2013, MISC's PBT rose 50.1% to RM1.08billion from RM721.11million a year ago, boosted by bigger share of profit from joint ventures (from RM64 million to RM891 million), especially the one-off gain from the disposal of the Gumusut-Kakap Semi-Floating Production System through a finance lease.
For FYE31/12/2013, MISC's net profit jumped 170.7% to RM2.08billion from RM770.24million, boosted by bigger share of profit from joint ventures (from RM274 million to RM1.17 billion).
Table: MISC's last 8 quarterly results
Chart 2: MISC's last 31 quarterly results
MISC (closed at RM6.50 yesterday) is now trading at a PE of 13.8x its FY2013 EPS of 47 sen. If exceptional gain (such as the one-off gain from the disposal of the Gumusut-Kakap Semi-Floating Production System of unknown quantum), the PE would be higher. Would that be compensated by better tanker shipping rates? We will wait & see.
Last week, MISC broke above its strong horizontal resistance at RM5.80. Its immediate resistance could come from the line connecting the highs for the past two years (AB) at RM6.45-6.50. Beyond that, the resistance would at the horizontal line at RM6.90-7.00. Thus, its short-term upside is limited.
Chart 1: MISC's weekly chart as at Feb 13, 2014 (Source: Tradesignum)
Based on improved financial performance, better outlook for tanker shipping rates & positive technical outlook (albeit short-term road blocks ahead), MISC remains a good stock for a recovery play.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MISC.