KUALA LUMPUR (March 15): Shares of MISC BHD [] fell on Thursday as the outlook was weighed down by concerns about more losses from its tanker division.
At 2.48pm, MISC was down 14 sen to RM5.04 with 1.549 million shares done.
The FBM KLCI was just 0.67 of a point higher at 1,576.38. Turnover was 752.91 million shares valued at RM780.31 million. There were 233 gainers, 390 losers and 342 stocks unchanged.
CIMB Equities Research had in a Feb 23 report lowered the target price for MISC to RM4.80 from RM5.80 then. It had lowered its target price-to-book value from 1.2 times to 1.0 times which was closer to its peers.
The research house said for 2012-13, it expected losses from the tanker division to expand further as the 10 very large crude carriers that are currently on profitable term charters will expire in the next one to two years. When renewed, these vessels are likely to turn in losses.
“On a more positive note, 2012 will see the two converted Modular Capture Vessels commence their 20-year contract in the United States and two DP aframax tankers begin their 15-year charter for Petrobras. These long-term charters will provide a fixed stream of income for MISC,” said CIMB Research.
At 2.48pm, MISC was down 14 sen to RM5.04 with 1.549 million shares done.
The FBM KLCI was just 0.67 of a point higher at 1,576.38. Turnover was 752.91 million shares valued at RM780.31 million. There were 233 gainers, 390 losers and 342 stocks unchanged.
CIMB Equities Research had in a Feb 23 report lowered the target price for MISC to RM4.80 from RM5.80 then. It had lowered its target price-to-book value from 1.2 times to 1.0 times which was closer to its peers.
The research house said for 2012-13, it expected losses from the tanker division to expand further as the 10 very large crude carriers that are currently on profitable term charters will expire in the next one to two years. When renewed, these vessels are likely to turn in losses.
“On a more positive note, 2012 will see the two converted Modular Capture Vessels commence their 20-year contract in the United States and two DP aframax tankers begin their 15-year charter for Petrobras. These long-term charters will provide a fixed stream of income for MISC,” said CIMB Research.
