ESG: The EEXI and CII challenge from 2023F
■ This report examines in-depth the impact of the EEXI and CII rules from
2023F, which is the IMO’s main effort to reduce shipping carbon emissions.
■ MISC’s oil tankers compare well to its peers, but its LNG fleet may have to
discount its long-term charter rates to compensate for slower sailing speeds.
■ Our SOP-based TP remains at RM7.95, with downside risk to RM7.64. We
reiterate Add with a potential rally in 2H21F tanker rates as the key catalyst.