Zahid Osman, MISC President and Group CEO said, "This quarter has been one of both progress and challenges for MISC as we are taking actions to deliver more energy with less emissions under our #deliveringProgress strategy. Our performance was marked by commendable achievements, unexpected market downturns, and project delivery challenges. Despite these hurdles, we continue to strengthen the resilience of our Core Businesses by securing contracts for newbuild LNG Carriers (LNGC) and taking control of an FPSO unit from our JV partner. Additionally, we have developed strategic partnerships to pursue new energy opportunities in the ammonia value chain.
At the same time, a tough operating environment has impacted our financial performance especially for the GAS business, which led to lower revenue, operating profit, and cash flows compared to last year. Notwithstanding these challenges, we are able to maintain our returns commitment to the shareholders.
While the year had its challenges, we are already taking steps to enhance performance and reinforce our adaptability as we pursue sustainable growth under #deliveringProgress strategy. We remain firm in our commitment to seize opportunities that drive greater value for our stakeholders.”
Highlights of the MISC Group’s Financial Performance for the Fourth Quarter of 2024:
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Group revenue, operating profit and profit attributable to equity holders of the corporation for the quarter and year ended 31 December 2024 were lower than the corresponding quarter and year ended 31 December 2023.
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Group cash flows generated from operating activities for the year ended 31 December 2024 was lower than the corresponding year ended 31 December 2023.
SUMMARY OF KEY FINANCIAL INFORMATION | 31 December 2024
Currency: Malaysian Ringgit (MYR)
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MEDIA RELEASE |
INDIVIDUAL PERIOD |
CUMULATIVE PERIOD |
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|
Current Year Quarter |
Preceding Year |
Current Year to Date |
Preceding Year |
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|
31 Dec 2024 |
31 Dec 2023 |
31 Dec 2024 |
31 Dec 2023 |
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|
MYR'000 |
MYR'000 |
MYR'000 |
MYR'000 |
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|
1 |
Revenue |
3,306,600 |
4,278,300 |
13,237,500 |
14,271,700 |
| 2 | Operating Profit | 376,700 | 874,700 | 2,593.700 | 2,881,400 |
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3 |
(Loss)/Profit before tax |
(437,300) |
662,300 |
1,283,500 |
2,093,700 |
|
4 |
(Loss)/Profit after tax |
(436,600) |
627,300 |
1,233,200 |
1,958,900 |
|
5 |
(Loss)/Profit attributable to ordinary equity holders of the parent |
(446,200) |
627,300 |
1,193,500 |
2,123,500 |
|
6 |
Basic (loss)/earnings per share (Sen) |
(10,0) |
14.1 |
26.7 |
47.6 |
|
7 |
Proposed/Declared dividend per share (Sen) |
12.0 |
12.0 |
36.0 |
36.0 |
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As At End of Current Quarter |
As At Preceding Financial Year End |
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|
8 |
Net assets per share attributable to ordinary equity holders of the parent (MYR) |
8.42 |
8.80 |
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Group Revenue, Operating Profit, (Loss)/Profit Attributable to Equity Holders of the Corporation for the Quarter Ended 31 December 2024
The Group revenue of RM3,306.6 million was RM971.7 million or 22.7% lower than the quarter ended 31 December 2023 (“corresponding quarter”) of RM4,278.3 million, mainly due to lower recognition of revenue from the conversion of a Floating, Production, Storage and Offloading unit (“FPSO”) following lower project progress upon achievement of its first oil in the current quarter. In addition, the Marine & Heavy Engineering segment recorded lower revenue from its ongoing Heavy Engineering projects as several projects are nearing completion. Petroleum & Product Shipping segment’s revenue also decreased due to lower freight rates and earning days in the current quarter.
The Group operating profit for the quarter ended 31 December 2024 of RM376.7 million was RM498.0 million or 56.9% lower than the corresponding quarter's profit of RM874.7 million mainly due to lower project progress and increase in construction costs of the FPSO as well as higher cost provisions relating to an asset in the Offshore Business segment. The operating profit for the Gas Assets & Solutions segment decreased due to higher operating costs, while the Petroleum & Product Shipping segment recorded a decrease in operating profit, in line with the lower revenue mentioned above. The decrease in operating profit was partially cushioned by the Marine & Heavy Engineering segment contributed by recognition of cost recovery claims in the current quarter.
The loss attributable to equity holders of the corporation of RM446.2 million was RM1,073.5 million lower than the corresponding quarter’s profit of RM627.3 million due to lower operating profit mentioned above coupled with higher impairment provisions.
Group Revenue, Operating Profit, (Loss)/Profit Attributable to Equity Holders of the Corporation and Cash Flows Generated from Operating Activities for the 12 Months Year Ended 31 December 2024
The Group revenue of RM13,237.5 million was RM1,034.2 million or 7.2% lower than the revenue for the 12-months year ended 31 December 2023 (“corresponding year”) of RM14,271.7 million primarily driven by the current quarter’s revenue performance.
Group operating profit of RM2,593.7 million was RM287.7 million or 10.0% lower than the corresponding year’s profit of RM2,881.4 million due to the lower profit in the Offshore Business following lower project progress as well as higher cost provisions as mentioned above. Gas Assets & Solutions segment also recorded lower profit from lower earning days and charter rates coupled with higher operating costs. The decrease in the operating profit was, however, offset by higher margin in the Petroleum & Product Shipping segment as well as higher operating profit in the Marine & Heavy Engineering segment from the recognition of cost recovery claims and better cost discipline.
The profit attributable to equity holders of the corporation of RM1,193.5 million was RM930.0 million or 43.8% lower than the corresponding year’s profit of RM2,123.5 million due to the lower operating profit as mentioned above coupled with higher impairment provisions recognised in the current year.
The Group recorded cash flows generated from operating activities of RM4,276.9 million for the year ended 31 December 2024, which was lower by RM1,419.4 million or 24.9% compared to RM5,696.3 million in the corresponding year, due to higher payments made to creditors.
Moving Forward
In the fourth quarter of 2024, LNGC spot rates declined further, mainly due to high vessel availability arising from strong LNGC newbuild deliveries. The declining rates have significantly impacted the long-term valuation of our assets, affecting the financial results of our Gas Assets & Solutions segment. The outlook for LNGC rates is expected to remain soft in 2025 driven by the continued influx of new vessels and delays in additional supply from new LNG liquefaction projects. However, LNGC rates are expected to recover post-2026, driven by the gradual increase in LNG supply as the delayed projects become operational. Nevertheless, the Gas Assets & Solutions segment will continue exploring strategic opportunities for its spot vessels, including repurposing the vessels into floating storage solutions.
In the Petroleum shipping segment, despite seeing a quarter-on-quarter improvement, the crude tanker spot rates remained subdued in the fourth quarter of 2024 compared to the first half of the year due to softer oil demand, particularly from China and ongoing OPEC+ output curbs. However, the overall tanker market outlook for 2025 remains positive, supported by high tonne-mile demand from continuous vessel rerouting and from long-haul Atlantic-Asia trade, as well as minimal fleet expansion. The Petroleum & Products segment's income will continue to be supported by its fleet of long-term chartered vessels and niche lightering business.
Steady oil prices and sustained global oil demand continue to encourage investments in offshore projects, supporting a positive outlook for the Offshore segment. These favourable conditions drive ongoing growth of Floating Production Storage and Offloading (FPSO) vessels in South America, West Africa and the Asia-Pacific. The fourth quarter of 2024 saw the FPSO Marechal Duque de Caxias successfully achieved first oil and commence operations. This milestone, together with revenue from existing long-term contracts, is expected to further strengthen the segment’s financial performance. The Offshore segment will remain focused on pursuing new opportunities and expand its presence in the market.
For the Marine & Heavy Engineering segment, upstream capex spending is expected to grow steadily amidst heightened geopolitical tensions and continued energy security concerns. The Heavy Engineering sub-segment is poised to capitalise on the sustained strength of the upstream oil and gas demand and pursue growth opportunities to ensure a well-balanced portfolio across both conventional and new energy sectors. In the Marine sub-segment, the increase in upstream activities is expected to drive greater opportunities for conversion, repair and maintenance services, which the sub-segment will continue to pursue to strengthen its market position and ensure stable income. The Marine & Heavy Engineering segment will remain focused on pursuing contracts that are aligned with its strategic objectives while refining its contracting strategies to support its 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:
Maisara Noor Ahmad
Head, External Communications
Group Strategic Relations & Communications
MISC Berhad
Tel : +603-2275 3496
Email : [email protected]
Mansurah Raisa Binti Ab Rahim
Manager, External Communications
Group Strategic Relations & Communications
MISC Berhad
Tel : +603-2275 3250
Email : [email protected]
