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

People & Company News

Panama Canal to Celebrate 100 Years

To commemorate its centennial, the Panama Canal will host a series of events August 14-15 in Panama City to highlight the impact of the waterway during the past century.

Statoil, Repsol, ExxonMobil Win Colombian Offshore License

Statoil announced today that it has been awarded interest in the COL4 license offshore Colombia in the Caribbean Sea in the 2014 Colombia Licensing Round, along with Respol and ExxonMobil.

SHIPPINGInsight 2014 Agenda Announced

Annual Conference, Exhibition and Networking Event Brings Together Shipowners and Technology Companies to Address Practical Solutions for Efficient Operations The

Finance

Trading Dutch Well Placed to Pursue Russia Sanctions

The seafaring Netherlands prides itself on being a trading nation, reluctant to let politics get in the way of a good deal. But since the downing, allegedly

Navios Announces VLCC Delivery

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced that the Nave Electron, a 2002-built VLCC of 305,178 dwt, was delivered

Scorpio Tankers: Latest Financial & Ship Delivery News

Scorpio Tankers Inc. says it has updated its stock buyback program; lists its latest new vessel deliveries, and gives the release date of its second quarter 2014 earnings report.

LNG

Editorial: Gas ... It's Both the Question & the Answer

When the time comes to pull an edition together, sometimes the content simply takes on a life of its own, as is the case with the July 2014 edition and the proliferation of ‘gas’ throughout.

EXXONMOBIL Files Export Application for Alaska LNG Project

In another important step forward for the Alaska LNG project, an application to export liquefied natural gas (LNG) was submitted to the U.S. Department of Energy by EXXONMobil.

Bureau Veritas Kick-starts LNG Bunkering

International classification society Bureau Veritas has published a comprehensive set of guidelines on LNG Bunkering, with the aim of speeding adoption of LNG as

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.1459 sec (7 req/sec)