MISC posts weak Q3 financial results

Although the Malaysian ship owner reported lower profits and revenues for the third quarter of 2016 compared to a year prior, the company did have some notable accomplishments during the quarter.    Malaysian ship owner MISC Group reported a group profit before tax of 2.3 billion Malaysian ringgit (U.S. $550 million) for the first nine months of 2016, up 28 percent from the corresponding period in 2015.
   Revenues for the first nine months of 2016 fell 6.8 percent year-over-year to RM 7.1 billion, MISC said.
   In the third quarter alone, MISC had a group profit before tax of RM 154.6 million on revenues of RM 2.3 billion, year-over-year declines of 70.2 percent and 8.5 percent, respectively.
   On Aug. 12, S&P upgraded MISC’s rating to “BBB+” from “BBB.”
   On Aug. 30, MISC’s wholly-owned subsidiary, MISC Offshore Floating Terminals Limited, signed a contract for the lease and operations of a floating, storage and offloading vessel (FSO) for the FSO Benchamas 2 Project with Chevron Offshore Thailand Ltd. in the Gulf of Thailand. The 10-year contract was secured through an international bidding process for the FSO to be converted as a replacement unit for Chevron’s Benchamas field operations and is scheduled to begin operations in Thailand’s waters by the second quarter of 2018.
   On Sept. 29, MISC’s first marginal marine production unit (MaMUP 1), a fit-for-purpose floating, production, storage and offloading unit for the development of marginal fields, set sail to the Anjung Kecil oil field, offshore Sarawak. The MaMUP 1, which was converted from an oil tanker, can store 318,000 barrels and is designed to produce 15,000 barrels of oil per day.
   On Sept. 30, MISC took delivery of its first MOSS-Type liquefied natural gas (LNG) carrier, the Seri Camellia, which is the first in a series of five MOSS-Type LNG carriers MISC has ordered from Hyundai Heavy Industries. The Seri Camellia joins the MIS fleet as the 28th active LNG carrier.
   Overall, MISC is equipped with a fleet of more than 110 owned and in-charted LNG, petroleum and product vessels; as well as 16 floating facilities.
   “Moving forward, to fulfill our aspiration of consistently providing better energy-related maritime solutions and services, MISC will capitalize on timely investment opportunities to ensure future business sustainability,” MISC President and CEO Mr. Yee Yang Chien said. “Leveraging on our financial strength, we will allocate both our capital and human resources toward building value in our existing businesses, as well as in strengthening the quality of our income by expanding into growth areas that will provide us with recurring long-term income streams.”