The Board of Directors of MISC Berhad announced that MISC and Samsung Heavy Industries Co. Ltd. have signed shipbuilding contracts for the construction of two (2) newbuild LNG carriers (?New LNGCs?). The New LNGCs will be delivered in 2027.
In parallel, MISC has signed a letter of intent with PETRONAS LNG Sdn. Bhd. (?PLSB?) for the provision of long-term LNG shipping services to PLSB and/or its subsidiaries which involves the time charter of the New LNGCs.
Concurrently, both MISC and PLSB have agreed to the early termination of the time charters of three (3) existing steam LNG carriers, Seri Ayu, Seri Angkasa and Seri Begawan (?Seri AAB?) as well as entering into time charters for two (2) LNG carriers, Seri Alam and Seri Amanah (?Seri AA?) upon expiry of their existing time charters. The LOI sets out the salient terms and conditions in relation to the transactions which will form the basis for the finalisation and execution of definitive agreements. MISC will incorporate new wholly owned subsidiaries to own the New LNGCs.
The SPVs will enter into time charters with PETRONAS LNG Ltd. (?PLL?) for the charter of the New LNGCs for a firm period of 15 years from 2027 (?Transaction 1?). The New LNGCs support the strategic intent of rejuvenating MISC?s LNG fleet with modern and efficient vessels towards achieving reduction of greenhouse gas emissions and intensity by 2030. In consideration of Transaction 1, the time charters for Seri AAB will be terminated and Seri AAB will be redelivered on the 20th year anniversary of their respective time charters in 2027/2028 and in return, MISC will receive monetary compensation from PLSB (?Transaction 2?).
Concurrently with Transaction 1 and Transaction 2, MISC and PLSB have agreed to enter into time charters of Seri AA upon expiry of their existing time charters (in 2025 and 2026) until 31 March 2028 (?Transaction 3?). The Transactions are not subject to the approval of the shareholders of MISC nor any governmental authorities.
