MISC bags RM1b worth of vessel charter contracts in Brazil

KUALA LUMPUR (Jan 6): MISC Bhd is kicking off 2020 on a strong note, as it has secured three long-term vessel charter contracts worth a total of US$245 million (RM1.005 billion) in Brazil.

In a statement, MISC said Shell Group's Brazil Shipping I Ltd will charter three Suezmax class Dynamic Positioning Shuttle Tankers (DPSTs) from MISC's wholly-owned subsidiary AET Tanker Holdings Sdn Bhd.

AET, a petroleum shipping unit of MISC that specialises in global ocean transport of petroleum, will own and operate the three Suezmax class DPSTs for operations in international and Brazilian waters. The charter of the three vessels is expected to start in 2022.

MISC said the three long-term charter contracts will reinforce AET's position as a global leader within the niche DPST market, besides fortifying its position as a leading international petroleum shipping solutions provider.

"The award of these long-term time charter contracts for three Suezmax class DPSTs is a result of MISC's continuous focus on our growth strategy of investing in quality assets on demand for long-term charters to premium customers for long-term secured revenue streams," said MISC president and group chief executive officer Yee Yang Chien.

MISC added that the group has entered 2020 with a strong foothold and momentum to sustain its track record of operating cashflow and delivering recurring profits.

At 4pm, MISC shares were trading 2 sen lower at RM8.47, giving it a market capitalisation of RM37.85 billion. The stock is up about 33% from 12 months ago.