MISC (MISC) Q1 2026 earnings summary

Executive summary

• Revenue grew 15% year-on-year to $729 million (RM2,891.4 million), driven by strong petroleum segment performance and higher freight rates, with profit after tax up 18% year-on-year to $189 million (RM741.4 million).

• Operating cash flow rose 78% year-on-year to $310 million, reflecting robust collections and operational strength.

• Board declared a first interim dividend of 8 sen per share, consistent with the prior year.

• 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.

Financial highlights

• Group operating profit was $193 million, stable year-on-year but up 55% quarter-on-quarter due to non-recurrence of one-off items.

• Cash balance increased to $1.8 billion (RM7,233.7 million), supported by strong net cash from operations and borrowings.

• Total borrowings rose to $3.4 billion, with net gearing improving to 0.19x.

• CapEx rose to MYR 800 million in the quarter, with expectations for continued increases due to vessel deliveries.

• Basic earnings per share rose to 16.6 sen from 15.8 sen year-on-year.

Outlook and guidance

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

• CapEx is projected to rise year-on-year as more vessels are delivered.

• The group remains selective in pursuing new FPSO and new energy projects, balancing growth with financial discipline.

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