MISC (MISC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $703 million (RM3,329.4 million), down 10% year-over-year, while operating profit rose 49.1% to RM792.2 million, driven by cost recovery and improved margins in key segments.

• Net profit attributable to equity holders for Q2 2024 was RM540.9 million, with basic EPS at 12.1 sen, up from 10.1 sen in Q2 2023.

• Profit after tax reached $121 million, a 24% decrease quarter-over-quarter but a 73% increase year-over-year.

• First half profits increased by 30%-35% year-over-year, and quarter-on-quarter cash flow rose by 33%.

• Dividend payout for Q2 was MYR 0.08 per share (USD 76 million), 33% lower quarter-over-quarter but 12% higher year-over-year.

Financial highlights

• Q2 profit before tax was RM588.3 million, up from RM339.2 million in Q2 2023.

• Cash flow from operations was $289 million, up 33% quarter-over-quarter but down 49% year-over-year.

• Total assets increased to RM66,370.1 million as of 30 June 2024, with equity attributable to shareholders at RM40,773.5 million.

• Balance sheet remains strong with prudent debt management and MYR 14 billion in assets.

• Net cash generated from operating activities for H1 2024 was RM1,562.6 million, down from RM3,276.6 million in H1 2023.

Outlook and guidance

• LNG shipping market outlook remains favourable with expected spot rate increases due to seasonal demand and winter restocking.

• Petroleum shipping rates remain resilient, supported by long-haul exports and low fleet growth.

• Offshore business segment to benefit from steady global upstream capex and robust FPSO demand.

• Marine & Heavy Engineering segment aims to capitalize on low-carbon opportunities and mitigate supply chain risks.

• Charter rates projected to stay attractive in H2 2024, supported by Red Sea disruptions and strong tonnage utilization.