Moody's Assess MISC Q1 2013 Results

Press Release/Moody's Investors Service
Monday, May 27, 2013

MISC Berhad results were slightly lower than the quarter ending December 2012 but were in line with its expectation.

For the quarter ending March 2013, MISC reported a marginal 2.3% increase in its revenue from the December quarter mainly due to increase in revenue of in its heavy engineering business.

However, recurring or core EBITDA from continuing operations for the quarter $240.1 million was lower than $267.7 million achieved in the
quarter ending December 2012. This decline was mainly due to lower contribution from the LNG segment which recognized pre operating costs for the 2 FSUs and higher cost incurred from vessel dry docking and
repairs.

Nonetheless, the core EBITDA for the quarter did improve by 21% from $198.9 million for the corresponding quarter last year as bunker prices declined by about 3.5% on average and losses in chemical and petroleum
segments declined.

"MISC's performance should improve in the next few quarters as the company completes the construction of its Gumusut project in July 2013 and the charter rates for its vessels -- especially in petroleum segment- stabilize towards the end of the year" says Vikas Halan, a Moody's Vice President and Senior Analyst.

MISC's reported gross debt as of March 2013 -$2.9 billion- declined marginally by $63.5 million from December 2012, whereas net debt
increased by 15% to $1.9 billion, as cash balance declined by 24% to $985
million.

MISC's credit metrics continues to improve. Unadjusted debt to recurring EBITDA for the last twelve months ending March 2013 has reduced to 2.7x from 3.0x in 2012 and 4.3x in 2011.

"Although the buyout offer from its parent Petronas did not succeed, it reinforces its close business links with, and strong parental support
for, MISC, both of which are key credit strengths that provide a three-notch uplift included in MISC's current Baa2 rating" adds Halan,
who is also the lead analyst for MISC at Moody's.

MISC was established in 1968 as a liner company and was listed on theKuala Lumpur Stock Exchange in 1987. In 1998, it became a subsidiary of Petroliam Nasional Berhad ("Petronas"). It is the exclusive transporter of liquefied natural gas for Petronas and provides it with logistics solutions.

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

EMS Seven Seas Announces New CEO

EMS Seven Seas announces new CEO; enters into agreement to acquire Wave Shipping, a Singapore-based maritime and port agency services company. EMS Seven Seas,

Liebherr Sees Growing Demand for Harbor Cranes in Latin America

Several new deliveries to Latin America; strong 2014 year for Liebherr mobile harbor cranes Liebherr said its mobile harbor crane population in Latin America

Sri Lanka Port Project: China Merchants, CHEC Invest $601-M

Two of China's largest port operators and engineering firms have agreed to invest in a $601 million terminal in Sri Lanka's Hambantota port, part of a series of

Finance

For Europe's LNG Ports, Russia Gas Fears and US Exporters Buoy Demand

Gas buyers nervous of Russia cutting supply are helping solve Europe's problem of too many underused liquefied natural gas (LNG) terminals, as they seek space at France's Dunkirk plant.

Statoil: COSL Pioneer Temporarily Suspended

Due to overcapacity in their rig portfolio, Statoil will lay up the COSL Pioneer rig in the fourth quarter of 2014. The rig is currently carrying out an assignment

Buckeye Pipeline Quietly Makes Key Acquisition

Houston-based logistic firm Buckeye Partners has spent more than $3.5 billion buying assets since 2010, transforming itself from a quiet regional pipeline utility into an emerging energy powerhouse.

LNG

For Europe's LNG Ports, Russia Gas Fears and US Exporters Buoy Demand

Gas buyers nervous of Russia cutting supply are helping solve Europe's problem of too many underused liquefied natural gas (LNG) terminals, as they seek space at France's Dunkirk plant.

Ferus Smit Building LNG Powered Cement Carrier

The first unique LNG powered ship that Ferus Smit has on order for Erik Thun A.B. will be built and equipped as a dedicated cement carrier. The ship will be delivered to the joint venture JT cement,

China Orders More MAN Dual-Fuel Units

51/60DF engines to power LNGCs MAN Diesel & Turbo has announced a further order for its MAN 51/60DF engine. After a longer period of evaluation, an international consortium,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1475 sec (7 req/sec)