Latest news with #MISCBhd
New Straits Times
13-07-2025
- Business
- New Straits Times
MISC Poised to ride FPSO boom, analyst maintains 'Buy' call
KUALA LUMPUR: MISC Bhd's offshore segment is expected to benefit from a robust floating production, storage and offloading (FPSO) market outlook, supported by sustained global oil demand and concerns over underinvestment. CIMB Securities Sdn Bhd said FPSO awards are projected to more than double by 2026, as highlighted by Rystad Energy, driven by strong project sanctioning momentum in South America, Africa and Southeast Asia. "MISC, with its established FPSO portfolio and track record, is well placed to capture this growth, ensuring stable cash flows and strengthening earnings visibility within its 'Resilient Core' focus area as part of its three-pillar strategy," it said in a note. CIMB Securities has maintained its "Buy" call on MISC, with an unchanged target price of RM9.19. The firm also noted that MISC offers a decent forecast dividend yield of 4.8 per cent per annum for the financial years 2025 to 2027. According to CIMB Securities, key re-rating catalysts for MISC include the full-year earnings contribution from FPSO Marechal Duque de Caxias starting from the financial year 2025 (FY25) onwards, alongside high utilisation rates and stable petroleum tanker time charter rates. It added that potential synergies from a prospective merger with Bumi Armada Bhd could further strengthen MISC's position to secure large-scale FPSO contracts, supported by the favourable FPSO market outlook. Meanwhile, CIMB Securities also highlighted that MISC had shared during its 2025 Strategic Outlook and Engagement Day that its decarbonisation strategy is progressing well, driven by clear targets, structured execution and tangible achievements across its operations and fleet renewal programmes. The company's commitment to net-zero emissions by 2050, with interim milestones by 2030, is already showing results, with a 32 per cent reduction in total greenhouse gas (GHG) emissions, exceeding industry benchmarks. The upcoming delivery of the world's first ammonia dual-fuel Aframax tankers marks a major step towards zero-carbon shipping, while plans to transition LNG carriers to high-efficiency dual-fuel systems by 2027 will further strengthen the company's decarbonisation pathway. "MISC's early success in securing the world's first modular offshore substation project in the Netherlands highlights its credibility and ability to enter high-value decarbonisation segments. "By leveraging its maritime expertise, engineering capabilities and strong financial foundation, MISC is well-positioned to execute its decarbonisation roadmap while capitalising on rising global demand for ammonia, methanol and carbon capture and storage (CCS) transport. "This strategic pivot not only enhances the company's long-term earnings diversification and resilience but also supports its target of achieving 25 per cent revenue contribution from new energy solutions," it said.
New Straits Times
10-07-2025
- Business
- New Straits Times
Long-term charters shield MISC from trade headwinds
KUALA LUMPUR: MISC Bhd expects trade headwinds to have only a minimal effect on its operations, as the majority of its liquefied natural gas (LNG) and petroleum fleets are secured under long-term charter contracts. According to RHB Investment Bank Bhd (RHB IB), the group's exposure to China-built vessels operating in the US Gulf is limited, and it has the flexibility to redeploy its fleet if necessary. "In managing geopolitical risks, the group has rerouted vessels via the Cape of Good Hope, supported by real-time monitoring and close coordination with authorities. "While oil majors pivot back to traditional oil and gas, highlighting energy transition risks, the maritime sector continues to move forward under clear regulatory direction and mounting pressure to decarbonise," it said. In line with this, MISC has set up a dedicated task force to lead its decarbonisation efforts. RHB IB said MISC is actively strengthening its resilience and maintaining steady long-term cash flows across its key business segments. In the LNG shipping division, the group is upgrading its fleet with 19 new LNG carriers expected to be delivered by 2027. For the petroleum segment, MISC is modernising its fleet with dual-fuel tankers, having already secured charters for three ammonia-powered Aframax vessels set for delivery between 2027 and 2028, along with two LNG dual-fuel Aframaxes. In the offshore segment, the company is preparing to bid for new projects to capitalise on the current floating production storage and offloading (FPSO) supercycle, following the successful deployment of the Mero 3 unit. RHB IB also noted that MISC is exploring floating CO₂ injection solutions by leveraging the combined capabilities of its Offshore and New Energy (NED) divisions. As for its heavy engineering segment, the focus is on improving the quality of its order book and positioning its yard as a preferred partner for LNG carrier drydocking, repairs, and conversion works. Following a recent stakeholder engagement session, RHB IB said it remains upbeat about MISC's medium-term prospects, supported by its long-term charters and ongoing fleet upgrades despite the challenging environment. "Growth prospects are further supported by its positioning in the FPSO supercycle and growing momentum in green energy," it added.
Malaysian Reserve
10-07-2025
- Business
- Malaysian Reserve
MISC retains Buy, target price up at RM9.90
MISC Bhd remain focused on its plan to deliver earnings growth by riding on FPSO supercycle market, venturing into profitable new energy market, and pursuing sustainability and decarbonization effort. The company is ramping up its energy transition strategy as International Maritime Organization (IMO) carbon pricing mechanism is poised for implementation by 2027 with carbon price of up to US$380 per metric tonne. Maintain MISC as a Buy with target price of RM9.90. Our Buy recommendation is premised on proxy for growth in global upstream capital expenditure spending, recurring income from its asset leasing business model and decent dividend yield of c.5%. – BIMB Securities Sdn Bhd (July 10, 2025) (Calls by analysts tracked by Bloomberg: 12 Buy, 3 Hold, 0 Sell; Consensus target price: RM8.49)
New Straits Times
29-05-2025
- Business
- New Straits Times
RHB: MISC poised for FPSO growth, 'Buy' at RM9.70
KUALA LUMPUR: MISC Bhd's outlook remains positive, underpinned by its stable operating cash flows and robust balance sheet that position the group well to capitalise on growth opportunities in the floating production storage and offloading (FPSO) market, said RHB Research. The firm said MISc's first quarter (Q1) 2025 core profit of RM667.9 million came broadly within its and consensus expectations, accounting for 29 per cent of full-year estimates. This was primarily driven by stronger contributions from the offshore segment following the start-up of Mero 3. "The Q1 2025 results were broadly in line with our expectations, as we foresee some softness in the gas and petroleum segments in the coming quarters due to ongoing market uncertainties," it said in a note. Meanwhile, RHB Research said MISC's offshore segment is poised for stronger performance following the first oil delivery from Mero 3, which is expected to generate steady long-term cash flows for MISC. It also said that the company guided that liquefied natural gas (LNG) shipping rates are expected to stay subdued due to vessel oversupply, driven by high newbuild deliveries and delays in LNG liquefaction projects. "The petroleum outlook is mixed, with VLCC rates forecasted to slightly outperform mid-sized tankers, supported by stagnant fleet growth and sustained long-haul crude demand from the Americas and the Middle East to Asia. In addition, mid-sized tanker rates are expected to ease, in MISCs view, amid increased vessel availability, normalising from the strong levels seen in 2023 and early 2024," it said. Overall, RHB Research has maintained its earnings estimates, as it expects some moderation from the gas and petroleum segments in light of ongoing market uncertainties. The firm maintain its Buy recommendation with an unchanged target price of RM9.70.
The Star
28-05-2025
- Business
- The Star
Lower revenue from key segments weighs on MISC's 1Q 2025 earnings
KUALA LUMPUR: MISC Bhd 's net profit eased to RM705.70 million in its first quarter ended March 31, 2025 (1Q 2025) from RM759.90 million in the same period a year earlier on the back of lower revenue for the quarter. Revenue for the quarter declined to RM2.82 billion against RM3.64 billion year-on-year, primarily weighed down by lower revenue from the marine and heavy engineering segment by 54.0 per cent. The segment recorded a revenue of RM453.1 million, which was RM531.4 million lower than the corresponding quarter's revenue of RM984.5 million, mainly attributable to lower revenue from ongoing heavy engineering projects. "This is due to several projects nearing completion, resulting in lower activity and revenue, while the newer projects are still at early stages,' MISC said in a filing with Bursa Malaysia today. Additionally, the group said that the lower revenue in the gas assets and solutions segment was primarily due to lower earning days resulting from contract expiries, vessel disposals, and lower charter rates during the current quarter. Revenue for the segment stood at RM636.2 million, which was RM139.1 million or 17.9 per cent lower than the corresponding quarter's revenue of RM775.3 million. - Bernama
