MISC wins RM1bil jobs

  • Business
  • Saturday, 07 Dec 2019

High note: Yee says he is hopeful of ending financial year 2019 on a high note.

PETALING JAYA: Liquified natural gas (LNG) carrier MISC BHD has secured three long-term charter contracts amounting to US$245mil (RM1.02bil).

Its wholly-owned subsidiary AET Tanker Holdings Sdn Bhd, through its vessel-owning entity, was awarded the contracts by Brazil Shipping I Ltd, a Shell Group entity.

AET will own and operate these newbuilding Suezmax Class dynamic positioning shuttle tankers for operations in international and Brazilian waters.

In a Bursa Malaysia filing, MISC said the charter is expected to commence in 2022.

The contract is not expected to have any material impact to earnings per share, gearing and net assets per share of the MISC Group for the financial year ending December 31,2019.

MISC Bhd recently posted a lower net profit of RM266.10mil in the third quarter ended Sept 30,2019, on the back of higher impairment of assets and finance costs, coupled with higher gain on acquisition of a business a year ago.

However, the group’s operating profit rose 6.2% to RM376.40mil from RM354.50mil due to improved margin on freight rates in the petroleum segment as well as higher revenue contribution from the LNG business.

In an earlier press statement on the group’s quarterly earnings, MISC president and group CEO Yee Yang Chien said he is hopeful of ending financial year 2019 on a high note with a few more projects secured, following its successful tender for the LNG tanker time charter contracts with SeaRiver Maritime (a wholly-owned subsidiary of Exxon Mobil Corp) for two vessels for a period of 15 years.

Bloomberg also reported that MISC Bhd intends to bid for US$6bil of contracts next year and expects to win as much of 30% of the deals pitched for in 2020, in line with surging demand for transportation of LNG.

The carriage contracts MISC is bidding for next year includes floating production storage and offloading vessels as well as LNG tankers.

Additionally, MISC stands to benefit from Petroliam Nasional Bhd’s (Petronas) need for mid-sized LNG carriers.

Petronas is MISC’s largest shareholder with a 62.7% stake.

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