MISC (MISC) Q1 2026 earnings summary

Executive summary

• Revenue rose 15% year-on-year to $729 million (RM2,891.4 million), driven by strong petroleum segment performance and higher freight rates, with net profit attributable to equity holders up to RM741.4 million.

• Profit after tax increased 18% year-on-year to $189 million, rebounding sharply from the previous quarter.

• Delivered one LNG carrier to QatarEnergy and secured multiple long-term contracts with PETRONAS, ExxonMobil, and Northern Lights JV.

• Recognized for industry and operational excellence with multiple awards, including the Prime Minister's Hibiscus Award.

• Board declared a first interim dividend of MYR 0.08 (8 sen) per share, unchanged from the prior year.

Financial highlights

• Group operating profit was $193 million, stable year-on-year but up 55% sequentially; operating profit in RM declined 10.5% year-on-year to RM766.8 million.

• Cash flows from operations totaled $310 million (RM1,250.4 million), up 78% year-on-year.

• Cash balance increased to $1.8 billion (RM7,233.7 million), with debt at $3.4 billion (RM13,802.4 million) as of March 2026.

• CapEx rose to MYR 800 million in the quarter, 40% higher quarter-on-quarter, driven by new vessel construction milestones.

• Dividend of 8 sen per share (RM357.1 million) approved for FY2026.

Outlook and guidance

• Elevated petroleum and LNG charter rates expected to persist into Q2 2026, with moderation anticipated in the second half as market stabilizes.

• LNG carrier rates remain strong for modern vessels; long-term contracts provide earnings stability.

• CapEx is expected to remain high in coming years due to ongoing vessel deliveries and project executions.

• Offshore market outlook is robust with strong FPSO project pipeline; Marine & Heavy Engineering faces volatility but sees opportunities in LNGC repairs and floater conversions.

• Appetite for new FPSO and energy projects remains, but future bids will be selective and based on capacity and financial discipline.