As a result the research maintained its "add” call on the company and raised its sum-of-parts-based target price after factoring in discounted cash flow (DCF) contribution from the four LNG vessels now in Petronas’ orderbook and other adjustments. CIMB ventured that ship ownership would become a relatively low priority for Petronas with other more pressing issues at hand.
“Hence, we think Petronas may sell its four LNG vessel newbuildings to MISC. Should this happen, it will mark a dramatic change in fortune for the latter, as the strength of the bonds between Petronas and MISC came into question when Petronas decided to directly order LNG vessels in August last year,” CIMB Research added
.If Petronas does sell these vessels to MISC, Petronas will likely charter them back from MISC to meet its shipping requirements at Bintulu and other ongoing projects, like FLNG1.
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