For the year 2014, we had embarked on a listing exercise in the Tank Terminal business by using a Master Limited Partnership (MLP) structure in the US. Our 50% owned joint venture, VTTI, listed six of its matured terminals via an initial public offering (IPO) of VTTI Energy Partners (VTTI EP). This had presented MISC with a good opportunity to unlock the value of its investments in VTTI. More importantly, VTTI has now, avail itself with a new source of capital raising to fund its future growth agenda. VTTI EP was successfully traded on the New York Stock Exchange (NYSE) in August 2014. Additionally, our Offshore Business had successfully completed and delivered our latest asset, the FPSO Cendor. The Floating Production, Storage and Offloading (FPSO) was constructed at our subsidiary Malaysia Marine and Heavy Engineering Holdings Berhad’s (MHB) yard in Pasir Gudang and had successfully sailed away in March 2014. FPSO Cendor was subsequently deployed at Cendor Field, offshore Terengganu. Our past expertise, experience and technical capability from undertaking mega projects in the past such as Gumusut-Kakap FPS and FPSO Kikeh have continued to serve us well in delivering the FPSO Cendor. During the year, MISC continued to seize any opportunities to streamline the Group’s assets and investment portfolios. One of the initiatives taken was to embark on a fleet rationalisation for our Chemical shipping business. During the year, we disposed of seven (7) chemical tankers and downsized the fleet to refocus the business on niche trade lanes. The downsizing has enabled us to reduce our losses from the chemical shipping segment. We also reviewed the opportunity of divesting and monetising our remaining non-energy related businesses. During the year, we were presented with the opportunity to divest our investment in our wholly-owned subsidiary, MILS. H owe v e r, d u e t o u n f o r e s e e n circumstances, we were not able to complete the sale process. But, we managed to dispose of our 15.73%, equity stake in NCB Holding Berhad for a total cash of RM222 million. The cash raised from the sale would be channelled back into the business for future expansion and growth. Today, we enjoy better financial performances with strong operational profits, supported by healthier cash reserves and a re-energised balance sheet. MISC BERHAD - Annual Report 2014 p 56 PRESIDENT/ CEO’S REPORT
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