KUALA LUMPUR: MISC Bhd expects to realise net cash of about US$167 million (RM506 million) for a gain on disposal of US$33 million from the sale and charterback of four tankers from its existing fleet.

In an announcement to Bursa Malaysia yesterday, MISC said its subsidiary AET Inc Ltd had entered into the sale and charterback for two Aframaxes and two Very Large Crude Carriers (VLCCs) with special-purpose companies owned by ICON Capital Corp.

“Under the transaction, upon the delivery of the vessels to the buyers, AET Inc shall bareboat charter each of the vessels from the buyers,” said MISC.

It said the move was part of AET’s medium and long-term fleet rejuvenation strategy through the phasing out of the older vessels owned by the company.

“The fleet capacity is maintained by usage of these vessels in the short-to-medium term,” said MISC, adding that save for the gain on disposal, its earnings for the financial year ending March 31 are not expected to be materially impacted.

The vessels in question are the Eagle Otome and Eagle Subaru which were built in 1994 and have deadweight tonnage (DWT) of about 95,000 tonnes, and Eagle Virgina and Eagle Vermont which were built in 2002 and have DWT of about 318,000 tonnes.


This article appeared in The Edge Financial Daily, March 30, 2011.