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MISC aiming for more FPSO projects

MISC aiming for more FPSO projects
Malaysian energy shipping company MISC could see contributions from its floating production storage and offloading (FPSO) business rise by a third if the deals it is pursuing flow through, local reports said.

President and group ceo Yee Yang Chien said was quoted as saying that MISC is currently working on three to four potential mergers and acquisitions and bids in the FPSO segment that are related to greenfield projects globally.

“Assuming that we secure these contracts, it might lift the contribution from the FPSO segment by one third.

“We will make the appropriate announcement when the time comes, as it’s still too early,” Yee said.

The LNG segment is still dominant however, contributing two thirds of the group’s profits last year, followed by 20% from offshore business and the remaining from its tanker business.

Despite the challenging market conditions, Yee noted that the group's current assets portfolio would continue to sustain profits but added that the focus in 2017 would be to replenish the pipeline of growth projects.

“For 2017 and moving forward, we will focus on replenishing the pipeline of growth projects,” Yee noted.

Yee had a conservative view going forward, suggesting flat growth in 2017 due to the current economic conditions.

Yee described the LNG shipping market as “dire”, as it was overwhelmed by the number of unutilised newbuild deliveries into the market, which continued to dampen the long-term and short-term charter markets. He reiterated however that MISC would not be impacted since all of its tankers have secured long-term charters.

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