MISC Share Price Up Two Sen In Early Trade

KUALA LUMPUR, Feb 4 (Bernama) -- MISC Bhd's share price was up in early trade today after the company secured a 20-year liquefied natural gas (LNG) shipping contract from Petronas LNG Ltd (PLL). 

At 10.15 am, the counter rose by two sen to RM8.15, with 73,200 shares transacted. 

In a research note today, Kenanga Investment Bank Bhd said the award is positive for MISC, enabling it to replace lost earnings from its older LNG vessels, which have seen their long-term contracts expire, and it also shows Petronas group’s commitment to renew its LNG fleet and intention to grow its LNG export business.

“We like MISC due to its recent fleet expansion and modernisation; decent dividend yield due to its recurring cash flow and strength of its balance sheet; and long-term growth trend in LNG business due to structural increase in demand,” it said.

However, it said that among risks for this call are lower-than-expected utilisation and spot rates for the petroleum fleet, additional cost overruns and project delays for Mero-3, and further structural weakness in the LNG shipping market, which may lead to difficulties for the group to maintain its gas and assets solutions division recurring earnings base in the longer run.

Kenanga Investment Bank has maintained an “outperform” call on the company with a target price of RM8.70 per share. 

In a Bursa Malaysia filing yesterday, MISC said it has received a letter of award from PLL for the provision of long-term LNG shipping services involving three newbuild LNG carriers.

Under the award issued on Jan 30, 2026, it will charter the three newbuild LNG carriers to PLL for 20 years each, with services commencing in 2029 and provided through its wholly owned subsidiaries.

In parallel with the award, it has entered into shipbuilding contracts with Hudong-Zhonghua Shipbuilding (Group) Co Ltd for the construction of the three LNG carriers.

-- BERNAMA