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MISC sets aside $1bn for capex this year

MISC sets aside $1bn for capex this year
Malaysia's MISC has allocated $1bn for capital expenditure (capex) this year to primarily focus on the petroleum segment business, despite lower oil prices in the global market, local reports said.

President and ceo Yee Yang Chien was quoted as saying that the capex is right for the company to remain competitive in the industry. “Falling oil prices have minimal impact on freight rates which are directly driven by supply and demand for oil, not the oil price.

“The capex this year is mainly for the construction and delivery of new liquefied natural gas (LNG) carriers, for which we secured a contract from Petronas in the first quarter of this year,” he said. Yee added that the capex also includes spending for its offshore operations.

On the group’s performance, he expressed confidence that the company will continue to be propelled by secured recurring income from a portfolio of long term contracts in the LNG shipping and offshore business segments.