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 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SSI to Showcase Marine Information Model

SSI's CAD/CAM ShipConstructor software utilizes a Marine Information Model (MIM) to store a wealth of data that can be leveraged for maintenance, repair and lifecycle support.

Bollinger VP Fanguy Snags SNAME Award

Louisiana-based shipbuilder Bollinger Shipyards, LLC announced its vice president for quality management system, Dennis Fanguy, will receive the 2015 William M.

Deal Reached to End MyFerryLink Dispute

A deal was reached on Monday to save hundreds of ferry jobs at the northern French port of Calais, the French transport minister said, ending a dispute that has

Finance

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

LNG

TOTE’s 2nd LNG Containership Launched

Shipping company TOTE and shipbuilder NASSCO on Saturday launched Perla del Caribe, the second of two Marlin Class ships – the first containerships in the world to be powered by natural gas.

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

Hitachi Gas Supply System Order for MHI

Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Hitachi Zosen Corporation for a high-pressure gas supply system enabling use of natural gas as fuel in marine engines.

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.4542 sec (2 req/sec)