Yee Yang Chien Vice President Corporate Planning & Development - - PowerPoint PPT Presentation

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Yee Yang Chien Vice President Corporate Planning & Development - - PowerPoint PPT Presentation

Presenter Yee Yang Chien Vice President Corporate Planning & Development Disclaimer This Presentation is not intended to form the basis of any investment decision with respect to MISC Berhad (MISC). Neither this presentation nor anything


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Presenter

Yee Yang Chien

Vice President Corporate Planning & Development

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This Presentation is not intended to form the basis of any investment decision with respect to MISC Berhad (MISC). Neither this presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This Presentation is solely based upon Information

  • f MISC. No representation or warranty, express or implied, is or will be made by MISC in relation to, and no

responsibility or liability is or will be accepted by MISC as to the accuracy and completeness of, the Information made available, and any liability therefore is expressly disclaimed. This Presentation contains “forward-looking statements”. Forward-looking statements by their nature involve known and unknown risks, uncertainties and other factors that are in many cases beyond MISC’s control. Although MISC believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to it, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. This Presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized, disclosed referred or passed on to others at any time without the prior written consent of MISC.

Disclaimer

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1987 Revenue

USD0.45 billion

*(MYR 1.38) billion

2012 Revenue

USD3.07 billion

*(MYR 9.48 billion)

MISC : The Journey Over the Years

Acquired 100% of MMHE

First deep water FPSO Kikeh

Acquired 50% of VTTI MHB listing on Bursa Malaysia Entered Brazil FPS market Entered Vietnam FPS market

Ventured into tank terminal business with Dialog

Formed Offshore business Acquired 100% of AET

Became a PETRO- NAS subsidiary

KLSE Listing First LNG carrier

Transformational Expansion

CAGR 8.07%

Formative Years

Liner business closure

FSU Tenaga 1 and 4 delivered to PGB Monetisa- tion of Gumusut- Kakap Semi-FPS Acquire Sime Darby Enginee- ring Yard

1970 1982 1987 1998 2003 2006 2007 2009 2010 2004 2011 2012

First Liner Vessel

Portfolio Rebalancing

Container Shipping exited Grand Alliance

Exited Dry Bulk business

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Today : MISC is a Shipping Conglomerate comprising of 7 Distinct Businesses

Listed on Bursa Malaysia

LNG Petroleum Chemical Offshore MHB Integrated Logistics Tank Terminals

1 2 3 4 5 6 7

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MISC Research MISC Research

We are the Second Largest Shipping Company in the World by Market Capitalisation

Rank Companies Country Mkt Cap USD mil Category 1

A.P. Moeller-Maersk A/S Denmark 33,588,926,464.00 Conglomerate

2

MISC Berhad Malaysia 7,762,364,416.00 Conglomerate

3

China COSCO Holdings Company Limited China 6,144,476,672.00 Conglomerate

4

Nippon Yusen Kabushiki Kaisha Japan 4,386,026,496.00 Conglomerate

5

Kirby Corporation U.S. of America 4,356,049,408.00 Bulk

6

Orient Overseas (International) Limited Hong Kong 4,227,883,776.00 Container

7

China Shipping Container Lines Co Ltd Hong Kong 4,129,565,184.00 Container

8

Mitsui O.S.K. Lines, Ltd. Japan 3,956,253,696.00 Conglomerate

9

Neptune Orient Lines Ltd. Singapore 2,470,314,240.00 Container

10

China Shipping Development Company Ltd. Hong Kong 2,119,112,832.00 Conglomerate

11

Evergreen Marine Corporation Taiwan 2,084,428,800.00 Container

12

Qatar Navigation Qatar 2,053,995,776.00 Conglomerate

13

Hyundai Merchant Marine Co.,Ltd Korea 2,030,093,184.00 Conglomerate

14

Kawasaki Kisen Kaisha, Ltd. Japan 1,984,132,992.00 Conglomerate

15

Wilh Wilhelmsen ASA Norway 1,927,885,696.00 Conglomerate

16

Dampskibsselskabet NORDEN A/S Denmark 1,382,655,488.00 Conglomerate

17

Trencor Limited South Africa 1,379,526,528.00 Container

18

U-Ming Marine Transport Corp. Taiwan 1,342,762,496.00 Container

19

Wilh Wilhelmsen Holding ASA Norway 1,331,807,232.00 Conglomerate

20

Yang Ming Marine Transport Corp. Taiwan 1,308,239,616.00 Container

Source: As at 31 March 2013 @ Bloomberg; List excludes Cruise/Ferry companies e.g. Carnival Corp (USA), Royal Caribbean (USA)

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Our Shareholders’ Profile as at 30th April 2013

PETRONAS 62.67% Employees Provident Fund 9.58% Other Malaysian Government Agencies 17.87% Malaysian Investors 3.53% Foreign Investors 6.35%

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BUSINESS OVERVIEW

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LNG Shipping - 3 Decades of Proven Track Record

  • Second largest LNG owner and operator in the

world.

  • MISC has 3 decades of proven experience in LNG

transportation and operations.

  • Delivered 22.3 million tonnes of LNG cargo in

2012, equivalent to 11.2% of world LNG trade.

  • With 27 vessels operating globally, MISC LNG

fleet represents 7.7% of the total world fleet.

  • Primary LNG transporter for PETRONAS with

90% of LNG shipping revenue from PETRONAS. LNG LNG Carriers : FSUs :

27 2

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LNG FSUs LEKAS

  • Successful conversion and delivery of Malaysia’s first 2 LNG Floating Storage Units (FSUs) for PETRONAS

LNG Regasification Facilities project in Sungai Udang, Melaka.

  • Tenaga Satu was converted by MMHE at their yard in Pasir Gudang while Tenaga Empat was converted

by Keppel Shipyard Ltd in Singapore.

Latest LNG Project

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Petroleum Shipping – Market Leader in Lightering

  • Top 10 tanker owners and operators in the world.
  • A high quality provider of global seaborne

transportation solutions to the international petroleum industry.

  • Market leading in ship-to-ship transfers in the US

Gulf (lightering).

  • Modern, young fleet of vessels ranging in the

capacity from medium range product tankers to VLCCs.

  • Specialist Dynamic Positioning (DP) operator.
  • 4%
  • f

Petroleum shipping revenue from PETRONAS. Petroleum Tankers

79

Owned : Chartered :

53 26

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Chemical Shipping – Top 5 IMO II Chemical Fleet

  • Ranked Top 5 IMO II Chemical Owners (by dwt).
  • Proven track record in transporting chemicals

and vegetable oils for major producers/traders.

  • Quality fleet comprising double-hulled IMO II

vessels with mixture of stainless steel and coated tanks to meet the highest safety requirements for transporting liquid bulk cargo.

  • 9%
  • f

Chemical shipping revenue from PETRONAS. Chemical Tankers

28

Owned : Chartered :

18 10

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Offshore Business – Top 5 Global FPSO Player

  • Among Top 5 global floating production,

storage and offloading player in 2012.

  • Proven technology to provide the best

solutions for

  • ur

customers’

  • ffshore

development needs.

  • Solid foundation in the offshore industry to
  • ffer comprehensive solutions for deepwater

and small field developments.

  • 31% of Offshore revenue from PETRONAS.

Offshore facilities

14

FPSOs/FSOs/MOPU

Under conversion

13 1

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Gumusut-Kakap FPS

  • First semi-submersible FPS in Asia.
  • Construction of the Gumusut-Kakap facility was done at MMHE’s yard in Pasir Gudang, Johor.
  • The Gumusut-Kakap Floating Production System (FPS) was successfully loaded out on 5 May 2013.
  • The handover to Shell was on 29 May 2013.
  • Production is expected to be at 135,000 barrels a day.

Latest Offshore Project

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  • Malaysia Marine and Heavy Engineering

Holdings Berhad (MHB) is a wholly-owned subsidiary of MISC Berhad and is listed on Bursa Malaysia since 2010.

  • With two yards in Pasir Gudang, namely

MMHE East and MMHE West Yard, MHB is

  • ne of the largest marine heavy industry

facilities in the region with an area of 197 hectares and a capacity of 130,000 MT a year.

  • 18% of MHB revenue from PETRONAS.

Marine & Heavy Engineering – Largest Marine Heavy Industry Facilities in the Region

Marine Business Unit Offshore Business Unit

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Tank Terminal – Top 10 Independent Tankage Player

  • MISC’s foray into the tank terminal business

begun via our project in Tanjung Langsat, Johor, Malaysia.

  • In partnership with energy traders Vitol Holding

B.V., we have expanded our logistic assets all around the world through JV subsidiary ,VTTI B.V.

  • Amongst Top 10 Independent Tank Terminal

players with 13 terminals and a total capacity of 9.2 million cubic metres.

  • Terminals strategically located at key hub and

spoke locations ie. Amsterdam, Rotterdam, Antwerp, Florida and Johor, Malaysia.

  • No revenue contribution from PETRONAS.
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Integrated Logistics – One-Stop Logistics Service Provider

  • Supply chain solutions and logistics services

throughout Malaysia, Singapore and Thailand with fleet strength of more than 150 prime movers and over 1000 trailers.

  • Manages MILS Logistics Hub in Pulau Indah

and a network of over 800,000 sq feet of warehousing space.

  • Registered vendor of PETRONAS and a

Multimodal Transport Operator (MTO).

  • 24% of Integrated Logistics revenue from

PETRONAS.

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MISC Research MISC Research

28% 23% 15% 34%

2011

Revenue Profile

31% 31% 19% 19%

2012

Spot [Petroleum, Chemical, Container] Term [Petroleum, Chemical] Annuity [LNG, Offshore] Contracted Orderbook [Heavy Engineering] Spot [Petroleum, Chemical, Container] Term [Petroleum, Chemical] Annuity [LNG, Offshore] Contracted Orderbook [Heavy Engineering]

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MISC Research

Group Profitability

  • 800
  • 600
  • 400
  • 200

200 400 600 800 1,000 1,200 FY2008/09 FY2009/10 FY2010/11 FY2011 FY2012 USD Million Discontinued Operations Continuing Operations

Profit Before Tax

1,000 2,000 3,000 4,000 5,000 FY2008/09 FY2009/10 FY2010/11 FY2011 FY2012 USD Million Discontinued Operations Continuing Operations

Revenue

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MISC Research

Net Debt/Equity Ratio

0.39x 0.21x 0.36x 0.48x 0.25x 0.1 0.2 0.3 0.4 0.5 0.6 FY2008/09 FY2009/10 FY2010/11 FY2011 FY2012

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“The global shipping slump is expected to last well into 2013 as a glut of vessels and a growing credit squeeze will challenge even the toughest companies in the seaborne sector”

  • Moody’s Investor Service
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LNG Spot Rates : Good Run in 2012

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

Source: Shipbrokers‘ Reports, May 2013

USD/Day

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(2,000)

  • 2,000

4,000 6,000 8,000 10,000

  • 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 Deliveries/(Demolitions) Fleet Capacity Delivery During the year ('000 cbm.) Demolition ('000 cbm.) Total Fleet ('000 cbm.) (‘000 cbm.) (‘000 cbm.)

LNG World Fleet Capacity

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Petroleum Tankers :Protracted Weakness

20,000 40,000 60,000 80,000 100,000 120,000 140,000 VLCC Average Earnings Modern Suezmax Average Earnings Modern Aframax Average Earnings Modern

Source: Shipbrokers‘ Reports, May 2013

USD/Day

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(30,000) (20,000) (10,000)

  • 10,000

20,000 30,000 40,000 50,000 60,000

  • 100,000

200,000 300,000 400,000 500,000 600,000 Deliveries/(Demolitions) Fleet Capacity Deliveries ('000 dwt) Demolition ('000 dwt) Total Fleet ('000 dwt)

Petroleum World Fleet Capacity

(‘000 dwt) (‘000 dwt)

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Chemical Tankers : Mild Recovery

20 40 60 80 100 120 140 Year Rotterdam - Far East 2,000 MT Chems S/S Rotterdam - Far East 5,000 MT Easychems Gulf-Far East 15K Chemical Rates

Source: Shipbrokers‘ Reports, May 2013

USD/Tonne

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(6,000) (4,000) (2,000)

  • 2,000

4,000 6,000 8,000 10,000 12,000

  • 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Deliveries /(Demolitions) Fleet Capacity Deliveries ('000 dwt) Demolition ('000 dwt) Total Fleet ('000 dwt) (‘000 dwt) (‘000 dwt)

Chemical World Fleet Capacity

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“Staying the Course, Meeting Challenges”

  • MISC Berhad
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2013 – Our Priorities

  • Delivery of Gumusut-Kakap FPS and FPSO Cendor
  • Business portfolio streamlining
  • Fleet optimisation
  • Cost rationalisation
  • Focused growth on annuity type business
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