MISC wins Norwegian job

Statoil contract could be worth up to RM1.2bil for 7-year charter period

PETALING JAYA: MISC Bhd has been awarded a contract to own and operate two specialist DP2 offshore loading shuttle tankers via its wholly owned subsidiary, AET Tanker Holdings Sdn Bhd.

In a filing with Bursa Malaysia, the energy shipping and maritime solutions provider said the contract, which was granted by Norwegian-based energy company Statoil ASA, had an estimated value of US$200mil (RM858mil) for a five-year charter period, or US$275mil (RM1.18bil) for a seven-year charter period.

MISC said Statoil would decide on and announce the charter period by Dec 31, 2017, adding that the two tankers would operate in oilfields on the Norwegian Continental Shelf of the North Sea, Norwegian Sea and the southern Barents Sea.

“Pursuant to this award of contract, AET will commission Samsung Heavy Industries to build two 125,000 deadweight tonnage (dwt) DP shuttle tankers for delivery in 2019 before chartering it to Statoil.

“The shipbuilding cost will be funded by AET’s internally generated funds and external borrowings.”

MISC said the contract did not have any effect on its issued and paid-up share capital and substantial shareholding in the company.

“The contract is also not expected to have any material impact on the earnings per share, gearing and net assets per share of the MISC Group for the financial year ending Dec 31, 2017.

“None of the directors or substantial shareholders of MISC or persons connected to them has any interest, direct or indirect, in the contract.”

Earlier this month, Sabah Shell Petroleum Co Ltd (SSPC) filed a counterclaim for a sum of US$583mil (RM2.5bil) in its dispute with MISC unit Gumusut-Kakap Semi-Floating Production System (L) Ltd (GKL).

In September 2016, GKL started legal proceedings to seek a resolution on contractual disputes covering various claims under a lease agreement dated Nov 9, 2012 between GKL and SSPC.

MISC filed an arbitration seeking RM1bil from SSPC.

Some analysts have forecast that the earnings impact on MISC would be huge should it lose the case against SSPC.

MISC reported a higher net profit of RM676.2mil for the first quarter ended March 31 compared with RM571mil a year ago, mainly due to stronger contribution from the group’s offshore business segment.

Its revenue for the quarter amounted to RM2.98bil compared to RM2.39bil during the corresponding period last year.

Its operating profit increased to RM681.3mil from RM666.6mil due to higher profit from the liquefied natural gas business, in tandem with higher revenue.