MISC Berhad Looking to Buy FPSOs and Tankers

MISC Due to a depression in the offshore oil and gas industry and low prices of assets, the Malaysia International Shipping Corporation (MISC) Berhad, a shipping arm of Petronas, is contemplating the acquisition of distressed floating, production, storage and offloading (FPSO) units, according to online newspaper The Star. According to the companys CEO Yee Yang Chien, MISCs prediction that FPSO owners would decide to sell their assets, which are deployed under charter deals, is being realized in some extent. However, Chien was quoted as saying that MISC would not rush to finalize any deals as the oil prices remain low, adding that the company was looking into buying petroleum tankers as well. The CEO further added that MISC’s business development focus was now placed on North and South America, Europe and Africa. MISC said that the moves follows the companys period of divestment undertaken during a downturn in the shipping industry, placing the company on strong financial grounds. During 2015 the shipping firm saw an increase of 12.3 percent in its net profit for the 2015 full year financials when compared to 2014. The group reported a net profit of MYR 2.4 billion, an increase from the net profit of MYR 2.2 billion in 2014, while the companys net profit for the fourth quarter of 2015 decreased to MYR 752,389 (USD 182,705), from MYR 991,609 (USD 240,796 million) recorded in the fourth quarter of 2014. Group operating profit was at MYR 1.08 billion in the fourth quarter of 2015, a 131.1 percent jump from MYR 468.9 million in the corresponding quarter of 2014. Full year revenue reached MYR 10.9 billion, representing a 17.3 percent increase compared to the MYR 9.2 billion revenue in 2014 In February MISC decided to merge its chemical fleet with the clean petroleum products (CPP) fleet operated by its wholly owned petroleum subsidiary, AET. Under the agreement, AET took over 13 chemical vessels and one LPG tanker owned and operated by MISC. Prior to the deal, MISC Berhad operated a fleet of 25 LNG carriers, 82 clean and crude petroleum vessels, 13 chemical ships, 1 LPG tanker and 13 offshore floating facilities. World Maritime News Staff