MISC to get two more LNG tankers in expansion move
MISC Bhd will receive two more liquefied natural gas (LNG) tankers costing between US$220mil and US$230mil each in its current financial year ending March 31, 2009.
With the two additional tankers, MISC’s LNG tanker fleet will expand to 29 tankers.
Chief executive officer Datuk Shamsul Azhar Abbas said one tanker was expected to be delivered by year-end and the other by early next year.
“Both the 157,000-cu m capacity tankers will be chartered to TOTAL Gas & Power Ltd for the Yemen LNG project,” he said after the company AGM yesterday.
Shamsul Azhar added that MISC would also receive 16 new chemical tankers over the next three years.
It currently owns 13 chemical tankers, according to the company’s website.
The expected deliveries of the LNG and chemical tankers are part of the group’s expansion plan that will see 32 newbuildings of vessels.
MISC also operates petroleum tankers, container vessels and floating production, storage and offloading (FPSO) facilities.
On the outlook of tanker rates, AET UK Ltd chief executive officer Amir H Azizan said the rates were expected to “ease off” for the rest of the year due to the “correction” of global oil prices.
“For next year, we have not changed our stand that it will be a difficult year for the tanker market where supply is expected to exceed demand,” he said, adding that MISC had enjoyed a “pretty good ride” in terms of tanker rates for the first seven months of this year.
AET is a wholly-owned subsidiary of MISC.
According to Shamsul Azhar, MISC will be prepared for the rough waves ahead as it had been anticipating the decline of tanker rates for the past two years.
“We expect the rates will start weakening in the third quarter of our current financial year and we have been carrying out cost-effective initiatives,” he said.
On the company’s proposed reverse takeover of Ramunia Holdings Bhd, Shamsul Azhar said the plan was on track and expected to be completed before year-end.
He said the injection of Ramunia into the group would add to Malaysia Marine and Heavy Industries Sdn Bhd’s (MMHE) exhausted resources and yard space.
MMHE order book currently stands at US$4bil that spans over three years.
For the financial year ended March 31, MISC posted revenue of RM12.9bil, up 15.7% against its previous financial year.
Excluding a gain on disposal of ships, MISC recorded a pre-tax profit of RM2.4bil, down 2.6% against its previous financial year.
The modest financial results were due to weakened freight rates and cost escalation globally. According to MISC, the average market bunker costs had increased by 43.9% over the previous financial year.
With the two additional tankers, MISC’s LNG tanker fleet will expand to 29 tankers.
Chief executive officer Datuk Shamsul Azhar Abbas said one tanker was expected to be delivered by year-end and the other by early next year.
“Both the 157,000-cu m capacity tankers will be chartered to TOTAL Gas & Power Ltd for the Yemen LNG project,” he said after the company AGM yesterday.
Shamsul Azhar added that MISC would also receive 16 new chemical tankers over the next three years.
It currently owns 13 chemical tankers, according to the company’s website.
The expected deliveries of the LNG and chemical tankers are part of the group’s expansion plan that will see 32 newbuildings of vessels.
MISC also operates petroleum tankers, container vessels and floating production, storage and offloading (FPSO) facilities.
On the outlook of tanker rates, AET UK Ltd chief executive officer Amir H Azizan said the rates were expected to “ease off” for the rest of the year due to the “correction” of global oil prices.
“For next year, we have not changed our stand that it will be a difficult year for the tanker market where supply is expected to exceed demand,” he said, adding that MISC had enjoyed a “pretty good ride” in terms of tanker rates for the first seven months of this year.
AET is a wholly-owned subsidiary of MISC.
According to Shamsul Azhar, MISC will be prepared for the rough waves ahead as it had been anticipating the decline of tanker rates for the past two years.
“We expect the rates will start weakening in the third quarter of our current financial year and we have been carrying out cost-effective initiatives,” he said.
On the company’s proposed reverse takeover of Ramunia Holdings Bhd, Shamsul Azhar said the plan was on track and expected to be completed before year-end.
He said the injection of Ramunia into the group would add to Malaysia Marine and Heavy Industries Sdn Bhd’s (MMHE) exhausted resources and yard space.
MMHE order book currently stands at US$4bil that spans over three years.
For the financial year ended March 31, MISC posted revenue of RM12.9bil, up 15.7% against its previous financial year.
Excluding a gain on disposal of ships, MISC recorded a pre-tax profit of RM2.4bil, down 2.6% against its previous financial year.
The modest financial results were due to weakened freight rates and cost escalation globally. According to MISC, the average market bunker costs had increased by 43.9% over the previous financial year.