MISC, AET Fleets Merger

International energy logistics group MISC Berhad announced that it is to merge its chemical fleet with the clean petroleum products (CPP) fleet operated by its wholly owned petroleum subsidiary, AET.

 

Under the new arrangement, AET will take over the 13 chemical vessels and one LPG tanker currently owned/operated by MISC and combine them with its own fleet of eight CPPs to create a new, single entity.

 

Announcing the move, MISC President/Group CEO, Yee Yang Chien, said, “There are significant synergies to be gained from merging the two fleets and creating a consolidated products business. Our chemical and CPP fleets have many customers in common and this merger enables us to offer them added value through additional capacity and flexibility.”

 

“The integration will also allow us to continue to expand our customer base and develop a range of long-term partnerships in the sector,” he added. “With growth forecast in the petrochemical industry, particularly in the US and Arabian Gulf, along with the current low oil price environment, we are confident that we will see a strengthening of exports and a higher demand for product tankers in the future.” 

 

The new arrangements involve transferring MISC’s seven Bunga A class vessels (38,000 dwt) which are owned by the company along with six Bunga L class (19,900 dwt) and one LPG vessel (20,613 dwt) which are all currently operated on long-term bareboat charters. These vessels will combine with AET’s eight CPP tankers. No changes will be made to the flag or classification society and MISC Berhad will continue to provide technical management for the chemical tankers and LPG vessel.

 

Captain Rajalingam Subramaniam, President & CEO of petroleum subsidiary, AET welcomed the new arrangements, sating, “The CPP and chemical businesses share similar market drivers and are both poised for sustainable growth in emerging markets, it makes absolute sense to operate these ships as a combined fleet. An integrated fleet allows us to optimize and triangulate the three core chemical markets – organic, vegetable and special – and provide greater options and flexibility to our customers. We believe we can achieve much higher vessel utilization with a larger fleet by having access to a greater cargo pool as well as having the ability to secure opportunistic fixtures. For our customers, I am confident of being able to deliver an enhanced service which maintains the high levels of quality and customer service they have come to expect from AET.”