Midstream O&G Players Set to Ride Firm Crude Flows

Midstream oil and gas players are poised to continue benefiting from strong crude trade flows and tight vessel supply, according to RHB Investment Bank (RHB IB).

The research house notes that tanker rates were already strengthening before the recent conflict, supported by higher crude exports, longer-haul trade flows, and tight vessel supply.

While geopolitical risk premiums may moderate, RHB IB expects tanker rates to remain above last year's levels, providing an earnings tailwind for MISC Bhd (KL:MISC) and its petroleum segment.

The research house also favors Dialog Group Bhd (KL:DIALOG), which offers resilient recurring-income visibility from its predominantly take-or-pay midstream operations, supported by healthy tank utilization and further growth from the ongoing Phase 3 expansion at Pengerang Deepwater Terminals (PDT).