Trading of MISC securities suspended for announcement

KUALA LUMPUR (Nov 24): Trading in the shares and warrants of MISC BHD [] will be suspended from 2.30pm on Thursday.

A Bursa Malaysia circular said the suspension was at the request of the company pending an announcement which wa expected to be announced before 5pm.

At midday, MISC shares fell seven sen to RM6.13 with 41,100 shares done.

MISC, Dialog ink deal with China Aviation to build RM371m oil storage facility

KUALA LUMPUR: MISC BHD [] and DIALOG GROUP BHD [] via their joint venture company (JVC), Centralised Terminals Sdn Bhd (CTSB), have signed an agreement with China Aviation Oil (Singapore) Corporation Ltd (CAO) to jointly build and maintain an oil storage tank terminal facility within Tanjung Langsat Port, Johor.

MISC in a filing to Bursa Malaysia Securities on Thursday, Oct 6 said the project was expected to commence by early 2012 and be completed by the end of 2013, with a total development cost of an estimated RM371 million.

The petroleum products storage tank terminal f facility would have a storage capacity of 380,000 cubic metres (cbm), it said.

CTSB is 45% owned by MISC and 55% held by Dialog.

Under a shareholders' agreement between CTSB and CAO, the companies would establish a JVC known as Langsat Terminal (Three) Sdn Bhd, in which CTSB would hold a 74% equity stake and the balance 26% to be held by CAO.

CAO is the largest physical jet fuel trader in the Asia Pacific region.

CAO will also enter into a terminal usage agreement with Langsat Terminal Three for the lease of all the capacity of the tankages and related facilities for an initial term of seven years.

MISC said CTSB would finance its portion (including the initial share subscription) of the eventual equity in the facility via internally generated funds, bank borrowings, proceeds from increase in its share capital and/or advances from its shareholders, of which the breakdown was pending finalisation.

'The shareholders agreement will pave the way for MISC and CAO to be strategic business partners in the equity ownership and development of the project.

'The project is expected to enhance MISC's position in the tank terminal business,' it said.

MISC said CTSB's proposed investments in Langsat Terminal Three ''were expected to contribute positively to its long term future earnings.

Presently, MISC and Dialog, through CTSB operates a tank terminal facility in Tanjung Langsat with a capacity of 476,000 cbm, under Langsat Terminal (One) Sdn Bhd.

Development of an additional 171,000 cbm facility at the adjacent Langsat Terminal (Two) is currently underway and is scheduled for completion by end 2011.

MISC falls on Moody's downgrade

KUALA LUMPUR: MISC BHD [] shares fell on Wednesday, Sept 21 after Moody's Investors Service downgraded the issuer and senior unsecured ratings of MISC from A3 to Baa1 with a negative outlook.

At 9.15am, MISC fell 18 sen to RM6.70 with 12,000 shares done.

Moody's on Sept 20 had said the prolonged weakness in MISC's credit metrics, operating losses in its liner, chemical and petroleum segments, and large capital expenditure plans -- amidst a difficult operating environment ' had triggered the review.

The international ratings agency pointed out that MISC's adjusted debt/earnings before interest, tax, depreciation and amortisation (EBITDA) of 6.0 times and EBIT/interest of 1.6 times for FY ended March 31, 2011 remained stretched for its current standalone rating.

Moody's also said MISC was also projected to incur US$1.8 billion of capex -- from FY2011 to FY2012 -- for new vessel deliveries, offshore and heavy engineering projects.

In addition, its liquidity profile has weakened, with maturing debt of RM1.58 billion requiring refinancing as at June 30, 2011.

MISC top loser, weak freight rates worry

KUALA LUMPUR: Shares of MISC BHD [] fell the most in late afternoon trade on Thursday, Aug 4 on rising concerns that the weak freight rates and volumes could impact the petroleum, chemical and container business.

At 4.11pm, it was down 21 sen to RM7.17'' with 496,600 shares done.

The FBM KLCI was up 1.89 points to 1,546.99. Turnover was 994.66 million shares done valued at RM1.22 billion. There were 364 gainers, 381 losers and 289 stocks unchanged.

RHB Research Institute had in a July 11 research report said the performance of MISC's petroleum, chemical and container liner segments will continue to be capped by the weak freight rates and volumes over the next one to two years.

However, it added that value has emerged with an imminent re-rating of the valuations of MISC's offshore assets on the heels of the IPO of Bumi Armada.

'Operationally, we also expect steady income stream from its LNG division and high growth at its offshore & engineering businesses. Indicative fair value is raised by 17% from RM7.26 to RM8.47 based on 'sum of parts'. Upgrade to Outperform from Underperform,' RHB Research said.

MISC near RM7 level on weak 4Q performance

KUALA LUMPUR: Shares of MISC BHD [] fell to a low of RM7.04 on Friday, May 13 after it reported a weaker set of results for the fourth quarter ended March 31, 2011.

At 3.29pm, MISC was down 15 sen to RM7.07 with 870,100 shares done.

The FBM KLCI rose 12.32 points to 1,544.61. Turnover was 828.81 million shares done valued at RM1.14 billion. There were 4213 gainers, 260 losers and 299 stocks unchanged.

On Wednesday, MISC reported net loss of RM307.88 million in the fourth quarter ended March 31, 2011 after it made impairment provisions totaling RM456.65 million.

Tthe poor financial performance was a sharp contrast from the net profit of RM196.43 million a year ago when the provisions for impairments were sharply lower at RM49.58 million.

Revenue fell to RM2.924 billion compared with RM3.31 billion a year ago. Loss per share was 6.9 sen compared with earnings per share of 5.10 sen.

Maybank Investment Bank Research said the core FY11 results were within its expectations as 4Q performance was negatively impacted by lumpy exceptional items resulting in a loss.

'Overall, it is still too early to turn positive on MISC. Operations remain challenging in the petroleum and liner businesses and recovery is unlikely to happen in 2011. Maintain Hold with a RM8.10 target price, based on a 10% discount to SOP valuations,' it said.