PETALING JAYA: Elevated crude tanker rates are expected to lift the second-quarter profits of MISC Bhd
, a shipping operator controlled by Petroliam Nasional Bhd or PETRONAS.
CIMB Research said earnings may improve sequentially in the second quarter of financial year 2026 (2Q26), driven by the full-quarter impact of elevated crude tanker spot rates.
“However, compared with the March peak, rates have eased and could potentially revert to pre-Iran war levels by the second half of financial year 2026 as supply-demand dynamics rebalance.
“The market is also expected to absorb deliveries of 90 new crude tankers this year (versus 33 in 2025), adding new supply to the market,” it said in a note.
The impact, nonetheless, may be offset by improvements in the liquefied natural gas (LNG) segment’s operating profit, according to the research house.
MISC is scheduled to take delivery of seven new LNG carriers in 2026, all secured under long-term charter contracts.
This forms part of the group’s effort to renew its gas and assets solutions fleet.
“MISC is expected to take delivery of 18 new vessels between 2026 and 2030, expanding the segment’s fleet to 47 vessels from 39 currently.
“Following this renewal, 80% of its LNG fleet will comprise modern tonnage vessels, compared with 45% currently.”
Following the recently announced results for 1Q26, CIMB Research has maintained its “buy” call on MISC with an unchanged target price (TP) of RM9.19 per share.
Additionally, MISC reported a 1Q26 core net profit of RM641.1mil, which was up 19.3% quarter-on-quarter, but fell 15% year-on-year.
Hong Leong Investment Bank (HLIB) Research said the core net profit was broadly in line with its forecast.
Separately, the research house also noted that the force majeure declaration by QatarEnergy has no immediate impact on MISC’s LNG fleet, as charter payments continue to be honoured under existing contracts.
“Overall, we believe MISC remains relatively insulated from the ongoing geopolitical tensions, underpinned by its defensive business model anchored on long-term LNG and petroleum charters, which provide recurring cashflows and support consistent dividend payouts.”
HLIB Research has a “buy” call on MISC with a slightly higher TP of RM9.04, from RM9 per share previously.
Meanwhile, MBSB Research upgraded its recommendation to a “buy” and a TP to RM9.22, from RM8.13 earlier.
The upgrade took place after MISC’s earnings came in above consensus’ expectations at 37%.
Looking ahead, MBSB Research said the outlook of MISC’s offshore segment remains robust with a strong pipeline of global floating production storage and offloading contract awards projected across South America, Africa, and the Asia-Pacific regions.
This is supported by persistently high oil prices and strong project startups.
“While we opine the tailwinds for the segment will remain, we also believe that the setbacks would provide significant growth opportunities for sustainable, long-term value creation.
“Despite the positive marine and heavy engineering (MHE) segment, we note that the highly volatile operating landscape will be impacted by geopolitical trade uncertainties.
“Nevertheless, the MHE segment is set to capture the rising demand for offshore floater conversions, as well as vessel repairs and maintenance.”
