PETALING JAYA: MISC Bhd is seen building up its resilience after some recent developments.

       The company has recently successfully delivered the first of the three Suezmax Dynamic Positioning (DP2) shuttle tankers for long-term charter with global oil and gas company, Shell.

       MIDF Research viewed this development as solid proof of MISC’s resiliency amid the uncertainties of the Covid-19 pandemic, coupled with supply chain disruption and the continued oil price volatility.

       According to MISC, the tanker, called “Eagle Campos”, was purpose-built for charter to a Shell wholly-owned indirect subsidiary, Brazil Shipping I Ltd.

       “Hyundai Heavy Industries (HHI) in Ulsan, South Korea, is presently building the tanker’s two sister vessels. HHI reported that the vessels will be delivered later this year,” it said.

       MISC is constructing five more DP2 shuttle tankers that would be delivered this year.

       This would boost its total fleet of dynamic positioning shuttle tanker (DPST) to 17, with 13 of them – including the “Eagle Pilar” – operating off the coast of Brazil.

       “Eagle Campos” is now one of the eight vessels operating in the Brazilian Basin, MIDF Research said.

       “The delivery of “Eagle Campos” is another step forward in MISC’s effort to expand its collaboration with Shell.

       “We believe this newest delivery strengthens its position as a global leader in the ownership and operation of marine transportation and highly specialised services, most notably of the DPSTs,” it said.

       MIDF Research said the construction of “Eagle Campos”, with the rigorous tests imposed and the successful delivery of the vessel during the ongoing pandemic is a “significant accomplishment” for MISC and its subsidiaries.

       The fulfillment with the global oil giant Shell will continue to be the strengthening factor of MISC’s operations and subsequently sustain its financial performance in the near term, it noted.

       “We remain bullish on MISC for its robust balance sheet, resilient performance of its shipping and offshore operations and diverse business activities that provide space for for risk mitigation,” it said.

       However, the research house made no changes to its earnings estimates on MISC.

       “The delivery of the vessels is within our expectations considering that MISC has factored in its deliveries for DPST in 2022 – five tankers out of six in total – for its financial year 2021 (FY21)-FY22. As such, we make no changes to our FY22 earnings estimates,” it said.

       MIDF Research maintained its “buy” call on the counter with an unchanged target price of RM7.81. This target price is based on a price-to-earnings ratio of 17 times the forecast FY22 earnings per share of 46 sen.