Zahid Osman, MISC President and Group CEO said, “MISC Group’s performance in the second quarter of 2024 reflects our strategic resilience and adaptability in navigating complex market conditions. Despite facing some headwinds, our diversified portfolio and focus on operational excellence have enabled us to achieve commendable results. As we progress through the year, we remain dedicated to leveraging growth opportunities across our key segments, ensuring that we continue to deliver sustainable value for our stakeholders while advancing our commitment to a just energy transition.”
Highlights of the MISC Group’s Financial Performance for the Second Quarter of 2024:
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Group revenue for the quarter ended 30 June 2024 was lower than the corresponding quarter ended 30 June 2023 while the Group revenue for the period ended 30 June 2024 was higher than the corresponding period ended 30 June 2023.
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Group operating profit and profit attributable to equity holders of the corporation for the quarter and period ended 30 June 2024 were higher than the corresponding quarter and period ended 30 June 2023.
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Group cash flows generated from operating activities for the period ended 30 June 2024 was lower than the corresponding period ended 30 June 2023.
SUMMARY OF KEY FINANCIAL INFORMATION | 30 June 2024
Currency: Malaysian Ringgit (MYR)
|
MEDIA RELEASE |
INDIVIDUAL PERIOD |
CUMULATIVE PERIOD |
|||
|
Current Year Quarter |
Preceding Year |
Current Year to Date |
Preceding Year |
||
|
30 Jun 2024 |
30 Jun 2023 |
30 Jun 2024 |
30 Jun 2023 |
||
|
MYR'000 |
MYR'000 |
MYR'000 |
MYR'000 |
||
|
1 |
Revenue |
3,329,400 |
3,549,600 |
6,967,700 |
6,628,300 |
|
2 |
Profit/(loss) before tax |
588,300 |
339,200 |
1,359,400 |
966,800 |
|
3 |
Profit/(loss) for the period |
571,300 |
321,900 |
1,325,100 |
932,900 |
|
4 |
Profit/(loss) attributable to ordinary equity holders of the parent |
540,900 |
452,900 |
1,300,800 |
1,065,800 |
|
5 |
Basic earnings/(loss) per share (Sen) |
12.1 |
10.1 |
29.1 |
23.9 |
|
6 |
Proposed/Declared dividend per share (Sen) |
8.0 |
10.0 |
16.0 |
17.0 |
|
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) |
9.13 |
8.95 |
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Group Revenue, Operating Profit, Profit Attributable to Equity Holders of the Corporation for the Quarter Ended 30 June 2024
The Group revenue of RM3,329.4 million was RM220.2 million or 6.2% lower than the quarter ended 30 June 2023 (“corresponding quarter”) of RM3,549.6 million, mainly due to lower revenue from on-going projects in the Marine & Heavy Engineering segment, coupled with lower earning days from contract expiries and lower charter rates in the Gas Assets & Solutions segment.
The Group operating profit for the quarter ended 30 June 2024 of RM792.2 million was RM260.9 million or 49.1% higher than the corresponding quarter's profit of RM531.3 million driven by higher profit in the Marine & Heavy Engineering segment, largely due to additional cost provisions recognised in the corresponding quarter and cost recovery claims in the current quarter. The Petroleum & Product Shipping segment also contributed higher operating profit, benefiting from improved margins.
The profit attributable to equity holders of the corporation of RM540.9 million was RM88.0 million or 19.4% higher than the corresponding quarter’s profit of RM452.9 million contributed by the higher operating profit mentioned above.
Group Revenue, Operating Profit, Profit Attributable to Equity Holders of the Corporation and Cash Flows Generated from Operating Activities for the 6 Months Period Ended 30 June 2024
The Group revenue of RM6,967.7 million was RM339.4 million or 5.1% higher than the revenue for the 6 months period ended 30 June 2023 (“corresponding period”) of RM6,628.3 million primarily driven by higher revenue from on-going Heavy Engineering projects as well as higher freight rates and earning days in the Petroleum & Product Shipping segment. However, the overall revenue increase was partially offset by lower revenue recognition from the conversion of a Floating, Production, Storage and Offloading unit (“FPSO”) following lower project progress in the current period.
The Group operating profit of RM1,674.2 million was RM317.4 million or 23.4% higher than the corresponding period’s profit of RM1,356.8 million contributed by the recognition of cost recovery claims in the current period, offset with the additional cost provisions recorded in the corresponding period due to revised schedule for on-going projects in the Marine & Heavy Engineering segment. The higher operating profit was also contributed by higher margins in the Petroleum & Product Shipping segment.
The profit attributable to equity holders of the corporation of RM1,300.8 million was RM235.0 million or 22.0% higher than the corresponding period’s profit of RM1,065.8 million due to the higher operating profit as mentioned above coupled with lower impairment provisions recognised in the current period.
The Group recorded cash flows generated from operating activities of RM1,562.6 million for the period ended 30 June 2024, which was lower by RM1,714.0 million or 52.3% compared to RM3,276.6 million in the corresponding period mainly due to the one-off receipt of charter hire prepayments for two Floating Storage Units in the corresponding period.
Moving Forward
In the LNG shipping market, spot rates remained subdued in the second quarter of 2024 with slight improvements in June, driven by heatwaves in Asia that uplifted LNG demand, increased competition for Europe-bound cargoes for inventory restocking and the restart of key LNG terminals post-maintenance. The outlook for the LNG shipping market remains favourable with spot rates expected to increase due to seasonal demand and potential winter restocking. The Gas Assets & Solutions segment is well positioned to sustain its stable operating income, supported by its resilient portfolio of long-term charters.
The petroleum shipping market rates for mid-sized tankers in the second quarter of 2024 remained resilient while VLCC rates had softened amid weaker imports from China. Nevertheless, the overall tanker market outlook remains positive with increasing long-haul exports from the US, Brazil and Guyana and low fleet growth. The operating income from the Petroleum & Product Shipping segment is expected to remain stable, backed by its fleet of long-term chartered vessels and potential opportunities to be capitalized in the spot trading market.
The global upstream capex spending remains steady amidst stable oil prices, which bodes well for the offshore business segment. The demand for newbuild Floating Production Storage and Offloading units (FPSOs) is expected to remain robust in the coming years, driven by projects in South America, West Africa and the Asia-Pacific region, along with the anticipated steady growth in global oil demand. This segment’s financial performance will continue to benefit from a reliable revenue stream generated by its existing portfolio of long-term contracts. The Offshore Business segment will continue to explore new opportunities in the market while successfully completing its current projects.
For the Marine & Heavy Engineering segment, upstream capex spending remains attractive to energy majors due to stable oil prices anticipated for the remainder of the year and the focus on ensuring energy security amidst persistent geopolitical risks. Furthermore, in view of increasing demand for low-carbon solutions, the Heavy Engineering sub-segment also aims to capitalise on these new opportunities from both conventional and clean energy sectors. The Marine & Heavy Engineering segment will continue its efforts to mitigate risks arising from the supply chain disruptions and price volatility, which are anticipated to persist given the volatile geopolitical landscape.
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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 Corporate Communications (GCC) Division of MISC Berhad. For media inquiries, please contact:
Shanni Muthiah
Head, Group Corporate Communications
Group Corporate Communications
MISC Berhad
Tel : +603-2275 2224
Email : [email protected]
Maisara Noor Ahmad
Head, External Communications
Group Corporate Communications
MISC Berhad
Tel : +603-2275 3496
Email : [email protected]
