Malaysia International Shipping Corp expects prospects to improve in 2003 after its net profit fell 21 percent in the financial year ending March this year.

In a statement late Wednesday, it said its net profit for the year just ended declined to RM1.3 billion from RM1.7 billion previously due to overcapacity and weak freight rates caused by the global downturn.

Sales dipped six percent to RM5.5 billion, while operating profit fell 17 percent to RM2.6 billion. Its earnings per share was 72 sen, down from 91 sen previously.

The shipping firm said the anticipated recovery in the US economy in the second half of the year promised prospects of better group performance for the financial year to March 2003.

But it said continuous global over-tonnage and weak freight rates would affect its revenue streams.

It said it had taken several initiatives to improve performance via stringent cost management, liner service rationalisation and formation of alliances and joint ventures in bulk and chemical businesses.

Efforts to look for new petroleum and chemical business opportunities globally were also ongoing, it added.

The company said it expects the delivery of two new liquefied natural gas vessels later this year to bring in additional revenue stream to shield the group from the impact of global uncertainties.