PETALING JAYA: MISC Bhd
is expected to ramp up investments in its petroleum shipping business over the next few years as the group expands its fleet, grows its dual-fuel vessels, and accelerates its push into new energy businesses to meet its 2030 cash-flow targets.
UOB Kay Hian (UOBKH) Research said that the group’s petroleum shipping arm, American Eagle Tankers Ltd (AET), remains focused on “building up resilience via its term charter mix, while accelerating decarbonisation and profitable new energy businesses”.
The research house added that increasing capital expenditure and vessel deliveries are inevitable if MISC is to achieve its MISC 2030 operating cash-flow growth targets.
“Continued disposals of idle liquefied natural gas carriers (LNGCs) are positive. While the Strait of Hormuz reopening will remain tardy, we see sentiment remains positive for MISC.
“Firstly, the US-Iran interim agreement should address risks of impairment/deferral on Qatari LNGC exposure.
“A surprise sale (instead of scrapping) of LNGC Seri Balhaf and Seri Balqis caps earnings downside risk from LNGCs as the idled fleet will be reduced further to three,” the research house said in a report yesterday.
UOBKH Research said via its fleet of 66 vessels, AET has maintained a secured/spot earnings before interest, taxes, depreciation, and amortisation (Ebitda) mix of 65%/35% in 2025 (2024: 67%/33%).
Geopolitical factors propelled very large crude carriers to return to the top of the earnings table since 2020, but the mid-sized tankers’ market leadership in lightering helped secured the long-term mix.
“This is despite lower Ebitda from dynamic positioning shuttle tankers (DPSTs) as more vessels underwent drydocking.
“Excluding drydocking, the DPST fleet performance improved on lower off-hire days and annual charter adjustments.
“With 10 new vessels (including two in-charter) under construction, its term charter mix (over vessel operating days) will improve to 70%, of which about 25% have minimum floor rates, but opportunity to gain during favourable market situations,” the research house noted.
It said AET shares the same 2030 targets as parent company MISC, ie 50% operating cash-flow growth from the 2022 baseline, with half of the increase from new energy.
The research house noted that 2025 Ebitda had already achieved a 25% growth versus 2022.
“It is actively exploring the viability of renewables (including offshore wind), waste-to-value solutions and future fuels for new energy.
“For example, AET has contracted its first hybrid-electric dual fuel ethanol-ready DPST. In partnership with Fleetzero, AET retrofitted a battery-hybrid lightering support vessel in 2025.
“We acknowledge the risks of not meeting this target, given the tight timeline,” the research house said.
It pointed out that there is a long way to go to achieve normalisation for the Strait of Hormuz traffic.
The research house noted the 14-point memorandum of understanding signed by President Donald Trump and President Masoud Pezeshkian led to renewed flows of vessels from crisis lows.
“However, this is crucially an interim framework (as a direct consequence of diplomacy), rather than a final settlement (which would imply a durable peace necessary to restore confidence).
“At roughly 117 total transits in the latest week, this merely represented 13% of pre-conflict throughput (125 transits per day).
“War-risk premiums remaining elevated and data showing uneven nature of reopening across commodity types all point to gradual normalisation through the second half of 2026,” the research house further said.
According to the research house, TradeWinds reported in late May 2026 that two laid-up LNGCs had been sold rather than scrapped.
Seri Balhaf and Seri Balqis were believed to have been purchased by Indonesian owners at a favourable price tag of US$60mil to US$70mil per vessel.
“The vessels were listed by Kpler as laid-up and the last cargo discharges were in March/April 2025, respectively, even though MISC had listed them as available for spot charters since mid-2025.
“Our channel checks find the TradeWinds article to be valid, as Seri Balhaf had been renamed to Golden Queena, while Seri Balqis had been renamed to SC Prestige,” UOBKH Research said.
“We are positively surprised by this development, which should lower the idled LNGC fleet further from five to three,” the research house added.
