UPDATE 1-Malaysia MISC Q4 net profit falls 76 pct

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KUALA LUMPUR May 11 (Reuters) - Malaysia's largest shipping company, MISC Bhd (MISC.KL), reported a 76 drop in quarterly net profit, hurt by the steep drop in container rates and forecast a weak outlook.

MISC, a unit of state-run oil company Petronas PETR.UL, reported January-March net profit of 181.8 million ringgit ($51.79 million) against 764.5 million ringgit a year ago.

For the full year, net profit dropped 42 percent to 1.4 billion ringgit.

"The global petroleum and container shipping rates are softening in line with weakening demand and oversupply of vessels," MISC, the world's largest owner of LNG carriers, said in a statement.

Overcapacity and declining container traffic have pushed liner rates down 64 percent year-to-date over last year's average, and are likely to stay depressed for the rest of the year, analysts said.

"The slowdown in the global economy is expected to pose significant challenges to the shipping industry ... the group's results are expected to be under pressure," the company said.

MISC shares closed down 1.2 percent at 8.50 ringgit. The stock is little changed this year, underperforming a 17 percent gain in the broader market index .KLSE ($1=3.510 Malaysian Ringgit) (Reporting by Julie Goh; Editing by Anshuman Daga)