MISC earnings to remain under pressure from spot charter rates

KUALA LUMPUR: After a year-on-year (y-o-y) drop in core earnings over the first half of the year, MISC Bhd could continue to see negative pressure on its earnings as the short-term outlook for petroleum tanker spot rates remains challenging.

According to Kenanga Research, the petroleum tanker spot rates could be the biggest external risk to MISC's quarter-to-quarter earnings fluctuations as 28% of its petroleum shipping fleet is exposed to the spot market.