Therefore, we believe the deal will be largely neutral for MISC, but it makes strategic sense as MISC refocuses on Malaysian assets (for future redeployments). Forecasts. We lifted FY25F earnings slight by 1.6% after accounting for the net positive impact from the FPSO asset swap deal. Valuations. We maintain our SoP-TP at RM8.09 as the change in SoP from the deal is expected to be insignificant. There is no change to our valuation based on ESG given a 4-star ESG rating as appraised by us (see Page 5). Investment case. We like MISC for its: (i) exposure to the booming petroleum tanker market globally due to high demand for long voyages due to the Red Sea conflict, (ii) large recurring earnings base which provides the ability to pay consistent dividends (3.8% for FY25), and (iii) huge balance sheet which enables the group to bid for more capital intensive FPSO jobs.