Financial Analysis Malaysian Bulk

UNDERSTANDING FINANCIAL REPORTS

ACC 370

LECTURER: :MISS DAPHNE CHAN

SUBJECT :FINANCIAL REPORT ANALYSIS FOR MALAYSIAN BULK CARRIERS

INTRODUCTION

The Malaysian Bulk Carriers( MBC) Group is the largest dry bulk ship owner in Malaysia engaged in international shipping. The MBC Group presently owns and operates a fleet of vessels which includes dry bulk carriers and product tankers.  MBC Group’s vessels are largely tramped on the spot and period markets. The Group's bulk carriers include dry bulk carriers and product tankers in Malaysia and internationally. The company’s bulk carriers are used for the transportation of dry cargoes comprising iron ore, steaming and coking coals, grains, sugar, coke, and fertilizers; and tankers are used for the seaborne transportation of petroleum products, chemicals, and vegetable oils. In addition, it engages in the ship management, ship brokerage, and trading in marketable securities. The company was incorporated in 1988 and is based in Petaling Jaya, Malaysia.

Apart from its own vessels, the Group also charters-in third party vessels to service contracts of freight commitments.

MBC was incorporated on the 19th of November 1987 as a shipping company. But it was not till 1995 when the company’s share holding was restructured as a result of a joint venture between Pacific carriers limited which is a wholly owned subsidiary of Kuok limited (Singapore), Malaysia sugar manufacturing company Berhad and Global maritime ventures which was incorporated in 1993 as a vehicle manage the 500m fund under the government shipping venture fund.

In 2003 MBC group acquired Pacific ship managers Sdn Bhd, a ship broker and manager of ships, with in the same year MBC was also listed for the very first time on the main board Kuala Lumpur stock exchange which is now known as the Malaysia securities berhad.

The group in 2005 received the following awards;

* The KPMG share holders value award in 2004-...