Tight supply chain for FPSO a bane for MISC

AmInvest Research said it remained concerned over potential further delays in FPSO Mero 3’s delivery, given constrained supply chain environment for the FPSO industry.

PETALING JAYA: MISC Bhd could potentially register further impairments for its floating, production, storage and offloading vessel (FPSO) Mero 3 in the near term.

According to AmInvestment Bank (AmInvest) Research, this could be due to the current tight supply chain environment for the FPSO market, which will likely persist and create potential delays in the delivery for MISC, particularly in relation to the 40% local content requirement.