Zahid Osman, MISC President and Group CEO said, “The first quarter of 2025 has been a period of resilience and strategic navigation for MISC, as we continue to advance our #deliveringProgress strategy to deliver more energy with less emissions. Through evolving market conditions, our diversified asset portfolio and resilient business model have supported the delivery of strong operating profit and cash flow. We leveraged synergies from the various businesses within the Group. Our efforts remain focused on strengthening our core businesses, operational excellence, and unlocking opportunities in new energies segment.
Looking ahead, we are optimistic about the gradual recovery in key markets. We will continue to execute our growth initiatives with agility, as we actively pursue partnerships and innovation to future-proof our portfolio.”
Highlights of the MISC Group’s Financial Performance for the First Quarter of 2025:
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Group revenue, operating profit and profit attributable to equity holders of the corporation for the period ended 31 March 2025 was lower to the corresponding period ended 31 March 2024.
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Group cash flows generated from operating activities for the period ended 31 March 2025 was higher than the corresponding period ended 31 March 2024.
SUMMARY OF KEY FINANCIAL INFORMATION | 31 March 2025
Currency: Malaysian Ringgit (MYR)
|
MEDIA RELEASE |
INDIVIDUAL PERIOD |
CUMULATIVE PERIOD |
|||
|
Current Year Quarter |
Preceding Year |
Current Year to Date |
Preceding Year |
||
|
31 Mar 2025 |
31 Mar 2024 |
31 Mar 2025 |
31 Mar 2024 |
||
|
MYR'000 |
MYR'000 |
MYR'000 |
MYR'000 |
||
|
1 |
Revenue |
2,816,100 |
3,638,300 |
2,816,100 |
3,638,300 |
| 2 | Profit before tax | 735,400 | 771,100 | 735,400 | 771,100 |
|
3 |
Profit for the period |
711,600 |
753,800 |
711,600 |
753,800 |
|
4 |
Profit attributable to ordinary equity holders of the parent |
705,700 |
759,900 |
705,700 |
759,900 |
|
5 |
Basic earnings per share (Sen) |
15.8 |
17.0 |
15.8 |
17.0 |
|
6 |
Proposed/Declared dividend per share (Sen) |
8.0 |
8.0 |
8.0 |
8.0 |
|
As At End of Current Quarter |
As At Preceding Financial Year End |
||||
|
7 |
Net assets per share attributable to ordinary equity holders of the parent (MYR) |
8.36 |
8.42 |
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Group Revenue, Operating Profit, Profit Attributable to Equity Holders of the Corporation and Cash Flows Generated from Operating Activities for the Quarter Ended 31 March 2025
The Group revenue of RM2,816.1 million was RM822.2 million or 22.6% lower than the quarter ended 31 March 2024 (“corresponding quarter”) of RM3,638.3 million, mainly due to lower revenue from ongoing projects in the Marine & Heavy Engineering Segment as several projects are nearing completion. The reduction in revenue is also attributable to lower earning days from contract expiries and vessel disposals as well as lower charter rates in the Gas Assets & Solutions Segment and impact from strengthening of RM against USD in the current quarter.
The Group operating profit for the quarter ended 31 March 2025 of RM857.2 million was RM24.8 million or 2.8% lower than the corresponding quarter's profit of RM882.2 million mainly due to lower profit in the Gas Assets & Solutions segment in tandem with the lower revenue. However, the decrease in the Group’s operating profit was mitigated by a one-time gain arising from the commencement of a new lease contract for an FPSO in the Offshore Segment, and successful close-out of post sail-aways projects upon the achievement of key milestones in the Marine & Heavy Engineering Segment.
The profit attributable to equity holders of the corporation of RM705.7 million was RM54.2 million or 7.1% lower than the corresponding quarter’s profit of RM759.9 in line with the lower operating profit as mentioned above, coupled with an impairment provision.
The Group recorded cash flows generated from operating activities of RM773.1 million for the quarter ended 31 March 2025, higher by RM562.3 million compared to RM210.8 million in the corresponding quarter due to higher collections from trade receivables.
Moving Forward
LNG carrier spot rates are expected to remain subdued from the continuous oversupply of vessels due to high newbuild deliveries and delays in new LNG liquefaction projects. Rates are anticipated to improve 2026 onwards, supported by a gradual increase in LNG supply as delayed liquefaction projects become operational. Despite these challenges, the Gas Assets & Solutions segment remains focused on executing strategic growth initiatives and exploring strategic opportunities for its spot vessels to weather the downturn.
For the Petroleum and Products segment, the tanker market outlook is expected to be mixed. VLCC rates are forecasted to slightly outperform those of mid-sized tankers, underpinned by stagnant fleet growth and sustained demand for long-haul crude exports from the Americas and the Middle East to Asia. Meanwhile, mid-sized tankers are likely to come under pressure from higher vessel availability resulting from a wave of new vessel deliveries. Additionally, the increasingly complex regulatory requirements and dynamic geopolitical environment could present further risks to the shipping market’s stability. Nevertheless, the Petroleum and Products segment will continue to be supported by its fleet of long-term chartered vessels and niche lightering business.
The outlook for the Offshore segment remains positive, supported by sustained global energy demand which continues to spur investment momentum into upstream developments. These favourable market conditions are driving the expansion of Floating Production Storage and Offloading (FPSO) activities across key regions, particularly South America, West Africa, and the Asia-Pacific. The segment’s long-term contracts, together with cash flows from FPSO Marechal Duque de Caxias, are expected to strengthen the segment’s financial performance in 2025. The Offshore segment remains committed to enhancing its market presence and pursuing strategic growth opportunities, while maintaining resilience in an evolving and complex market environment.
For the Marine & Heavy Engineering segment, heightened geopolitical tensions and potential tariff escalations have contributed to a more cautious environment. The Heavy Engineering sub-segment remained well positioned to capitalise on opportunities in the new energy sector, while sustaining its presence in the conventional sector to maintain a balanced portfolio. The Marine sub-segment continues to pursue strategic partnerships and expand its market presence, with a focus on securing high-value repair and conversion projects. The Marine & Heavy Engineering segment remains committed to pursuing contracts aligned with its strategic objectives, supporting sustainable performance and long-term growth.
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About MISC Berhad
MISC Group is an international maritime conglomerate with more than 55 years of experience in the dynamic maritime industry. Our extensive global footprint allows us to deliver a wide range of solutions that cater to various areas within the maritime-related energy value chain.
At the heart of MISC Group's success is our modern and diversified fleet of vessels and floating assets, complemented by the expertise of our diverse global workforce at sea and shore. As a future-focused organisation, we are committed to leading from the front, propelling the maritime industry into the future, and achieving society’s aspiration for a just energy transition.
For more information, visit https://www.miscgroup.com
Issued on behalf of MISC Berhad by the Group Strategic Relations & Communications (GSRC) Division of MISC Berhad. For media inquiries, please contact:
Shanni Muthiah
Head, Group Strategic Relations & Communications
Group Strategic Relations & Communications
MISC Berhad
Tel : +603-2275 2224
Email : [email protected]
Maisara Noor Ahmad
Head, External Communications
Group Strategic Relations & Communications
MISC Berhad
Tel : +603-2275 3496
Email : [email protected]
