Friday 29 Mar 2024
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KUALA LUMPUR (Jan 23): CIMB Research has maintained its “Overweight” rating on the tanker shipping sector and said all signs were pointing towards a stronger freight rate performance for the tanker market in 2015, driven by a favourable demand-supply balance, rising incidences of VLCCs utilised as offshore oil storage and potentially higher condensate exports from the US.

In a note Jan 22, the research house said the crude tanker shipping space is the most interesting shipping subsector this year.

“Maintain Overweight on the tanker shipping space, with a higher RM9.06 SOP-based target price for MISC Bhd,” it said.

“MISC is set to see improved profitability for its petroleum tanker and chemical tanker divisions this year, driven by stronger freight rates for the former and lower bunker prices for the latter.

“Petronas's potential decision to sell its LNG newbuildings to MISC will also provide to a boost to MISC's LNG business,” it said.

 

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