MISC LNG Contracts Shield Earnings from Rate Swings Amid Fleet Renewal Plans
MISC Bhd's long-term liquefied natural gas (LNG) contracts and fleet renewal programme will shield earnings from rate swings, according to Hong Leong Investment Bank Bhd.
Analyst Thye May Ting said MISC had increased the proportion of its gas segment exposed to term contracts to 98% in financial year 2025 (FY25), up from 83% in FY24 and 89% in FY23.
This provides stable earnings insulated from spot rate fluctuations, Thye explained. The company operates a gas fleet of 39 vessels, comprising 30 LNG carriers, three floating storage units, and six very large ethane carriers (VLECs).
MISC's fleet is targeted to expand to 50 vessels by 2030, with the addition of 14 LNG carriers, two VLECs, one floating storage and regasification unit, and two liquefied carbon dioxide carriers.