KUALA LUMPUR (Nov 4): Shipping company MISC Bhd has been sailing below the radar for many years, going about its business. Lately, however, there has been a change in tack at the company, with it undertaking its first sale and leaseback agreement for two liquefied natural gas (LNG) tankers to Japanese ship owner Nissen Kaiun Co Ltd.

According to MISC’s chief executive officer Captain Rajalingam Subramaniam, this is one way of freeing up capital at the giant shipping company, which is 51% controlled by national oil company Petroliam Nasional Bhd or Petronas.

In an exclusive interview, Rajalingam explains that the new strategy at MISC is a result of a review that the company had undertaken for a year, and that strategy was approved for execution in March this year.

Rajalingam says that MISC, with its strong balance sheet, could shift from its conservative model of having 80% of its ships on secure long-term charter contracts as opposed to short-term charters, which are more risky but also more lucrative.

Meanwhile, MISC’s 66.5% unit Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), which has been bleeding losses, saw yet another change at the helm with the departure of managing director Pandai Othman. He is slated to leave at the end of this month and will be replaced by 46-year-old Mohd Nazir Mohd Nor, who is a director of Petronas Energy and Gas Trading Sdn Bhd.

Mohd Nazir will be the fourth MD in eight years to helm MHB. 

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