MISC Bhd(Feb 6, RM8.25)Maintain buy with an unchanged target price of RM9.21: MISC Bhd has secured three long-term DP2 Shuttle Tankers (DPST) charter contracts worth US$525.6 million (RM2.16 billion) from Petrobras. We are positive about the contract win, as it helps to generate recurring income to MISC, while strengthening its business relationship with Petrobras. The estimated contract value is US$525.6 million, and the charter is expected to commence in 2022. We are positive about the contract win, as it helps to provide long-term quality secured income to MISC. Downside risks to our call are lower-than-expected charter rates and higher-than-expected vessel operating costs.

Source: The Edge Markets February 07, 2020 01:52 UTC