MISC Contracts New LNG Carrier to Bolster Earnings Profile

MISC Bhd is set to strengthen its long-term earnings profile as it continues investing in newer vessels to support growing liquefied natural gas (LNG) trade.

The company has secured a letter of award for the long-term time charter of a newbuild 18,700 cubic m LNG carrier, which will commence in 2028. This contract win is expected to enhance MISC's operational efficiency and reinforce its position as a key transporter in the global energy supply chain.

RHB Research has reaffirmed its positive outlook on MISC, maintaining its 'buy' recommendation and sum-of-parts-derived target price of RM9.71. The research house expects MISC's earnings profile to improve due to the deployment of modern, fuel-efficient vessels, which will replace older tonnage.

In addition to the new contract, MISC has entered into a shipbuilding contract with Hudong-Zhonghua Shipbuilding (Group) to construct a vessel, but the financial terms were not disclosed. RHB Research views this award as consistent with MISC's ongoing LNG fleet renewal strategy and does not alter its estimates.