Malaysia International Shipping Corp News

Malaysia International Shipping Corp. (MISC) reportedly signed a deal to establish a joint venture with Saudi Arabia's Bakri Navigation Company (BNC). The deal, according to a statement from the company, involves ownership, management, marketing and operation of maritime transportatio and shipping related business. BNC has a fleet of 16 chemical and petroleum production vessels, while MISC is the world's largest carrier of LNG.

A Malaysian container ship grounded on Australia's Great Barrier Reef for 12 days with dangerous chemicals aboard was pulled free on Tuesday, state officials said. Four tug boats were used in the operation after two earlier attempts to free the 600 ft. (184-m) Bunga Teratai Satu from the World Heritage-listed reef had failed. Winches on board the ship and connected to anchors on the sea floor were also used. It was reported that there were no immediate signs of pollution. The 21,000-dwt ship would be pulled to deeper water for a hull inspection. Salvage workers used dynamite to blow up part of the reef in a failed bid to free the ship on Sunday. The vessel ran aground on November 2 on Sudbury Reef approximately 30 miles east of Cairns in Australia's tropical north.

Malaysia International Shipping Corp (MISC) will raise about $600 million in global bonds by mid-2001 to partly fund the purchase of four ships worth some $1 billion. "We are first going to the market to be rated by international agencies like Standard & Poor's and Moody's and then will look at issuing bonds," MISC managing director Mohd Ali Yasin said. He said the credit ratings and the bond issue, the first by MISC globally, would be completed by middle of next year. MISC, one of the world's largest liquified natural gas (LNG) tanker operators, has placed orders for four LNG ships costing about $1 billion for delivery over the next five years. It also has an option to place firm orders for another two before the end of this year.

India's Petronet LNG will seek fresh price bids from the four consortia left in the race for a contract to ship liquefied natural gas (LNG) from Qatar to a terminal at west coast Dahej. "Technical bids have been opened and deviations are being sorted out. Once that is over, fresh price bids would be asked from the four," the official, who did not want to be identified, told Reuters. He said the deadline for selecting the shippers is March 31. Of the eight consortia which were pre-qualified after global competitive bidding, only four submitted technical and price bids. * Indian Oil Corp., Exmar of Belgium and Great Eastern Shipping Co. Ltd. * Essar Shipping and Malaysia International Shipping Corp.

Malaysia International Shipping Corp (MSIC) said on Tuesday it had no immediate plan to issue any bonds. Replying to a stock exchange query, the Malaysian flag carrier however said it was considering undertaking an international rating exercise. Traders told Reuters on Monday that MISC was planning to issue yankee bonds worth up to $500 million in the next few weeks. The MISC issue was seen as likely to precede a similar issue by its parent Petronas. The state oil firm owns 62 percent of MISC. Sources had said MISC could be borrowing under Petronas' name to enjoy better rates. But MISC said the report was mere speculation. "MISC is not going for any bond issue in the immediate future," it said. "MISC is considering undertaking an international rating exercise." - (Reuters)

Malaysia reportedly may set up a second national shipping line to help reduce freight charges between the peninsula and the states of Sabah and Sarawak on Borneo island, as traders in the two east Malaysian states had complained about high freight costs. "The proposal has come from the Ministry and the Cabinet is actively studying it," an official said. Malaysia International Shipping Corp., controlled by state oil firm Petronas, is currently the country's sole national shipper.

Standard & Poor's said the credit quality of shipping companies across Southeast Asia has suffered in the last two years, with most companies in the "weak to vulnerable" range, compared with "fair to weak" previously. "Earnings vulnerability and aggressive capital structures, characterized by modest and volatile cash flows and high debt levels, have strained the ability of many companies to meet financial obligations in a timely manner," shipping analyst Ee-Lin Tan said. Tan said underpinning the deterioration were limited geographic diversity and exposure to regional trade flows, intense price-based competition led by lower cargo traffic in certain trade routes and excess capacity within several shipping segments.