KUALA LUMPUR (Nov 27): MISC Bhd, one of the world's largest single owner-operator of liquefied natural gas (LNG) tankers, has won two time-charter contracts worth a combined US$133 million from LNG Shipping SpA (LSS), a wholly-owned subsidiary of Eni SpA, to provide two of its LNG carriers.

In a filing with Bursa Malaysia today, MISC said the two LNG carriers will be chartered by LSS for five years for operations in international waters.

The time charter contracts are pursuant to a sale agreement between LSS and MISC, which resulted in MISC acquiring ownership of the two vessels known as LNG Portovenere and LNG Lerici each with a capacity of 65,000 cu m, from LSS. LSS provides support to the latter for shipping needs and the LNG business.

"The charter for LNG Portovenere is expected to commence in December  whereas the charter for LNG Lerici is expected to commence by January next year," it added. The two vessels are currently trading in Asia-Pacific.

"In view of the evolving marketplace, there is certainly potential for us to diversify our solutions by including mid-scale and small-scale LNG transportation, especially with the growing spot market demand for LNG trading. This will enable MISC to develop our capability in the trading of multiple-size vessels, as well as our reach to other global locations,” said MISC president and group chief executive officer Yee Yang Chien in a separate statement.

“These mid-sized LNG carriers also present unique opportunities that supports MISC’s efforts to venture into non-conventional LNG shipping solutions, whereby upon expiry of the charter party, these vessels will have the potential to be converted into mid-sized floating storage regasification unit, floating storage units (FSUs) or other alternative LNG floating solution projects,” he added.

"The contracts do not have any effect on the issued and paid up share capital and substantial shareholding in MISC. The contracts are also not expected to have any material impact to the group's earnings per share, gearing and net assets per share for the financial year ending Dec 31, 2018," said MISC.

Currently, MISC's LNG fleet comprises 28 LNG carriers and two FSUs with a combined deadweight tonnage capacity of over 2 million. The delivery of LNG Portovenere and LNG Lerici, will increase MISC’s fleet of LNG carriers to 30.

At 2.42pm, MISC shares were unchanged at RM6.50, with 605,200 shares done, bringing a market capitalisation of RM29.01 billion.