KUALA LUMPUR (Aug 5): Shares of shipping giant MISC Bhd rose in early trade today on the back of the company’s net profit for the second quarter ended June 30, 2015 (2QFY15) rising a little over 2.5 times to RM745.2 million, from RM288.08 million a year ago, mainly on higher revenue in petroleum and offshore businesses and lower operating costs from a smaller fleet of operating vessels in the chemical business.

At 9.03am, MISC rose 25 sen to RM8.45 with 87,100 shares done.

Hong Leong IB Research has upgraded MISC to Buy with a higher target price of RM9 (from RM8.08) and said MISC’s reported 2Q15 earnings at RM739.1 million and 1H15 at RM1,254.8 million, achieving 63.7% of HLIB’s FY15 forecast.

In a note today, the research house said the result was above expectation owing to stronger than expected charter rates from the Petroleum Tanker and strengthened US dollar against the ringgit.

“Expect continued strong earnings for Petroleum segment and lower losses for Chemical segment.

“Earnings for LNG, Offshores & Terminal expected to remain stable, while MMHE remain subdued,” it said.

HLIB Research said increase FY15-17 earnings forecasts by 28-30%, after incorporating higher charter rates for Petroleum and stronger US dolllar.

“Upgrade to Buy with new target price at RM9.00 (from RM8.08). We expect MISC to leverage on the continued high Petroleum charter rate as well as the strengthened US dollar,” it said.