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

People & Company News

Boost for Offshore Wind Energy

As part of President Obama’s Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution, Secretary of the Interior

Coast Guard Cutter William Trump Commissioned

The Coast Guard Cutter William Trump was commissioned during a ceremony at Coast Guard Sector Key West Saturday Jan. 24, 2015. The Trump is the 11th fast response cutter in the Coast Guard fleet.

Gypsy Moth Clause Takes Balanced Approach to Risk

A new BIMCO clause provides a simple, practical and commercial solution focusing on the basic obligations and responsibilities of owners and charterers when dealing with the Asian Gypsy Moth (AGM).

Finance

Gypsy Moth Clause Takes Balanced Approach to Risk

A new BIMCO clause provides a simple, practical and commercial solution focusing on the basic obligations and responsibilities of owners and charterers when dealing with the Asian Gypsy Moth (AGM).

Maersk Line Gets new AEO number

Maersk Line has been re-certified as an Authorised Economic Operator (AEO) with the AEO-F, the highest achievable accreditation in the European Union programme.

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

LNG

Hofste, Montijn Nominated to Supervisory Board Fugro

Fugro N.V. announces that the Supervisory Board of Fugro nominates Mrs. P.H.M. Hofsté and Mrs. A.H. Montijn for appointment as members of the Supervisory Board

Venezuela's PDVSA Debt rose 6.3%

Venezuelan state oil company PDVSA's consolidated financial debt rose 6.3 percent in 2014 compared with the previous year to reach $46.2 billion, the company said late on Friday,

Yamal LNG Inks Deal with Gazprom to Sell LNG in Asia

A trading subsidary of Russian gas producer Yamal LNG has signed a long-term supply contract with a trading subsidiary of Gazprom, under which liquefied natural

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Sonar Winch
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: 0.1755 sec (6 req/sec)