Latest news with #Mero3
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.
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.
