Presenter
Yee Yang Chien Vice President Corporate Planning & Development - - PowerPoint PPT Presentation
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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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
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
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%
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
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
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.
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]
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
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
“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
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
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)
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
“Staying the Course, Meeting Challenges”
- MISC Berhad
2013 – Our Priorities
- Delivery of Gumusut-Kakap FPS and FPSO Cendor
- Business portfolio streamlining
- Fleet optimisation
- Cost rationalisation
- Focused growth on annuity type business