MISC Bhd

Petronas would have to wait 12 more months from April 2013 before it could launch any new takeover bid for MISC.

Since the onset of the global financial crisis in 2009 and the resulting downturn of the economy had been a challenging but exciting period for the company. However there is some light at the end of the tunnel as the company had managed to remain profitable since the middle of last year after two consecutive quarters of losses.

Its offshore business is still holding steady and liquefied natural gas shipping is stable. It had have also managed to reduce losses in the chemical tanker business through various cost-cutting measures.

Bunker constitutes 27% of our operating cost.

Its chemical shipping and petroleum tanker business were still in the red albeit slowly improving.

There might be cause for some excitement as come December 2013, the commissioned Gumusut-Kakap semi-submersible floating production system (FPS), the region's first deepwater semi FPS with 1,200 m water depth, should be up and running. MISC and Petronas Carigali jointly own the system via a special vehicle, GKL Ltd

Once it is commissioned, it will be a new income for MISC via GKL.

The Gumusut-Kakap field is Malaysia's second deepwater development after Kikeh and is expected to produce about 150,000 barrels of oil per day. It is operated by Sabah Shell Petroleum Co, partnering with Murphy Sabah Oil Co, Conoco Philips Sabah and Petonras Carigali Sdm Bhd.

The worst fiscal period for MISC is over as its first quarter results are promising and meets expectations.

MISC’s management cited possibility of paying dividend for 2013 on expectations of am improving outlook.

The worst is over for MISC from May 2013 …