XA Update Report | PT Buana Lintas Lautan Tbk. (BULL) – Navigating Favorable Waters on Rising Tanker Rates
By Ezaridho Ibnutama (Head of Research) & Graceline Melinda (Research Associate)
18-June-2026
We maintain our BUY rating on BULL, supported by a sharp inflection in tanker rates, strong earnings recovery in 1Q26, an accelerating 2Q26 outlook driven by structural tailwinds from the US-Iran conflict, and aggressive fleet expansion including the addition of a new LNG carrier.
🔹 1Q26 Earnings Sail Ahead of Expectations
• Freight Segment Lifts Revenue While Margins Expand. BULL started 2026 on a solid footing, with 1Q26 earnings reaching 26% of our FY26 forecast, suggesting the company remains on track to meet full-year expectations. Revenue grew 17% QoQ to USD 44 mn from USD 37 mn in 4Q25, mainly supported by stronger contributions from the freight segment. Profitability also improved across all levels, with GPM, OPM, and NPM reaching 42%, 37%, and 32%, respectively. The stronger margin profile was aided by lower costs, particularly within the Oil, FPSO, and FSO segments, where COGS declined 24% QoQ.
• Tanker Market Recovery Continues to Support TCE Earnings. 1Q26 TCE revenue reached USD 30 mn, growing 30% YoY from USD 23 mn in 1Q25 and 20% QoQ from USD 25 mn in 4Q25. The improvement was driven by firmer charter rates across BULL’s vessel portfolio, with Aframax TCE rising to USD 56,300/day from USD 40,000/day in 2025, while MR TCE increased to USD 30,500/day from USD 21,200/day. Stronger tanker demand and longer voyage distances continued to provide tailwinds for the freight market during the quarter.
• Stronger Earnings Help Ease Leverage Pressure. EBITDA climbed 69% YoY to USD 22 mn in 1Q26 from USD 13 mn in 1Q25, while Net Operating Income reached USD 14 mn compared to USD 5 mn YoY. Supported by stronger operating performance, Debt-to-Annualized EBITDA improved to 1.48x from 2.43x in 1Q25, reflecting healthier cash generation from the existing fleet.
🔹 LNG Fleet Expansion Adds a New Growth Lever
• BULL Adds Second LNG Carrier as Rates Surge. BULL disclosed plans to add a 78,000 DWT LNG tanker, doubling its LNG fleet to two vessels, with handover scheduled for 1Q26. The move comes amid a tightening LNG market, ton-mile demand growth of 30.7% in 2026-2027 outpacing fleet supply growth of ~19.2%, further amplified by Iran/Russia tensions that have pushed rates up almost 18x since end-February 2026 (one carrier reportedly chartered at ~USD300,000/day spot). Management expects rates to stay solid or rise further.
• Vessel Addition Set to Drive Topline and Bottom-Line Upside. This addition is well-timed, doubling BULL’s LNG fleet to two units just as charter rates inflect sharply higher, mirroring the TCE recovery already driving 1Q26 revenue and EBITDA growth in the oil tanker segment. Deployed near current rates, the vessel should be revenue- and margin-accretive, reinforcing the ongoing EBITDA growth and deleveraging trend (Debt/Annualized EBITDA at 1.48x in 1Q26), while offering better revenue visibility and diversification beyond BULL’s core oil tanker business. Key swing factors: delivery timing, charter structure, rate sustainability, and capex/funding burden.
• Four-Pillar Strategy Remains Intact. Management reaffirmed BULL’s four core growth pillars: (1) crude oil and oil product transportation, (2) LNG transportation, (3) FPSO/FSO facilities for offshore crude oil and natural gas production and storage, and (4) FSRU development for LNG regasification. This LNG carrier addition reinforces pillar and aligns with BULL’s broader strategy of diversifying across the energy value chain toward LNG and gas infrastructure, segments seen as offering stronger long-term growth potential through 2030.
🔹 Maintaining BUY Recommendation with TP at IDR 800 /Share
• We maintain our BUY rating on BULL with a target price of IDR 800/share. Supported by a favorable tanker market, management guided that 2Q26-to-date average TCE rates have more than doubled from 1Q26 levels, suggesting a much stronger earnings performance in the upcoming quarter. In addition, BULL plans to double its fleet size within the next one to two months compared to end2025, which should further expand revenue-generating capacity. Currently, BULL trades at 13.56x FY26F P/E and 5.76x FY26F EV/EBITDA, which we view as attractive given the improving earnings trajectory and ongoing fleet expansion.
• Risks: (1) weaker-than-expected tanker rates; (2) delays in fleet expansion and vessel deployment; (3) rising fuel and operating costs; and (4) softer global oil transportation demand.
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