KUALA LUMPUR, Nov 19 ― MISC Bhd fell eight sen to RM6.88 at 10am today despite recording higher third quarter (Q3) ended September 30, 2021 results, with 133,500 unit shares changing hands.
In a filing with Bursa Malaysia, MISC said it posted a higher net profit of RM401 million for its Q3 2021 from RM258.30 million in Q3 2020, mainly due to the contribution from its offshore business and the liquified natural gas (LNG) asset solutions segments.
Revenue jumped 30.7 per cent to RM2.69 billion, primarily contributed by higher revenue from the offshore business segment following the recognition of revenue from the conversion of a floating, production, storage and offloading (FPSO) installation.
RHB Investment Bank Bhd, in a research note, said it maintained its “buy” recommendation on MISC with a new target price of RM7.84 from RM7.60 as it factored in potential LNG new contract wins in financial year 2022.
“Nine months (9M21) results missed expectations due to the continuous drag from the petroleum division.
“We expect rates to improve in Q421 and 2022, premised on the winter season, economic recovery, and gradual increase in global oil production,” it said.
The research firm said an LNG carrier, Diamond Gas Victoria was delivered in July 2021, while another four dynamic positioning shuttle tankers would be delivered in first half of 2022.
“Most of these vessels have long-term contracts, which should gradually strengthen MISC’s recurring cash flow.
“MISC is still bidding for new LNG carrier contracts, while its recurring income remains solid, anchored by new asset additions,” it added. ― Bernama
