MISC (MISC) Q1 2025 earnings summary

Executive summary

• Group operating profit improved quarter-on-quarter and year-on-year, driven by a one-time gain from a new FPSO lease in the Offshore segment and stable performance in other core businesses.

• Achieved profitability in Q1 2025 while advancing strategic priorities, including new contracts and sustainability initiatives.

• A first interim dividend of MYR 0.08 per share was declared, totaling MYR 357 million, reflecting continued shareholder returns.

• Strategic focus remains on disciplined growth, operational resilience, innovation, and partnerships.

• Basic earnings per share for the quarter was 15.8 sen, down from 17.0 sen year-over-year.

Financial highlights

• Group revenue for Q1 2025 was $633 million (RM2,816.1 million), down 18% year-on-year and 16% quarter-on-quarter, mainly due to lower activity in Marine & Heavy Engineering and softer gas segment performance.

• Operating profit rose to $193 million (RM857.2 million), up 3% year-on-year and more than double quarter-on-quarter, driven by a one-time FPSO gain.

• Profit after tax was $160 million (RM711.6 million), stable year-on-year and a turnaround from a Q4 2024 loss.

• Cash flow from operations improved year-on-year by $133 million, reaching $192 million, and net cash generated from operating activities was RM773.1 million.

• Gearing ratio increased to 0.44 times due to higher debt, but net gearing remained stable as cash balances also rose.

Outlook and guidance

• LNG shipping spot rates are expected to remain subdued in 2025 due to vessel oversupply and project delays, with recovery anticipated from 2026 as new liquefaction capacity comes online.

• Petroleum shipping outlook is mixed; VLCC rates are expected to outperform mid-size tankers, while mid-size rates face pressure from new deliveries.

• Offshore upstream capital spending is projected to grow at a CAGR of 8.3% through 2029, supporting FPSO and FSO project pipelines.

• The company remains focused on fleet rejuvenation, operational excellence, and capturing opportunities in energy transition and decarbonization.

• Marine & Heavy Engineering segment is cautious due to geopolitical tensions but is pursuing new energy and high-value repair projects.