MISC's 2H Earnings Likely to Benefit from Higher Tanker Rates

Dow Jones
Oct 05

0446 GMT - MISC's earnings could be driven by higher tanker rates in 2H, says CIMB Securities analyst Muhammad Afif Bin Zulkaplly in a note. September tanker rates surged following disruptions to Saudi Arabia's oil shipments, with very large crude carrier rates averaging $231,500/day, an increase of 81.3% over 1Q averages, he notes. The impact could be more pronounced in 4Q as higher-rate contracts feed through, he says. However, MISC's proposed 2.85 billion ringgit acquisition of a 41.5% stake in Yinson, while offering strategic benefits would raise its debt burden and delay cash returns, he adds. The analyst raises MISC's 2026-2028 earnings estimates by 1.7%-15%. CIMB raises MISC's target price to 9.55 ringgit from 9.37 ringgit and keeps a buy rating. Shares are 1.2% higher at 7.62 ringgit.

 

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