MISC (MISC) Q2 2025 earnings summary

Executive summary

• Q2 2025 performance was resilient with strong operating cash flow and continued execution of strategic priorities, despite a challenging market and revenue decline.

• Major achievements included the delivery of the first LNG carrier for QatarEnergy, progress in CCS initiatives, and recognition for safety excellence.

• Strategic joint ventures were established in LCO₂ carriers and EPC, and new subsidiaries were incorporated.

• Offshore segment delivered notable profit uplift, offsetting lower group revenue.

• Revenue for Q2 2025 was RM2,721.3 million, down 18.3% year-over-year, with operating profit at RM755.2 million, a 4.7% decrease from Q2 2024.

Financial highlights

• Group revenue for Q2 2025 was $631 million (RM2,721.3 million), down 10% year-on-year, mainly due to lower Marine and Heavy Engineering and Gas segment contributions.

• Profit after tax was $110 million (RM469.4 million), a 9% year-on-year decline, mainly due to higher impairment provisions in the Gas segment.

• Operating cash flow surged to $374 million, more than double the previous quarter and up 31% year-on-year.

• Second interim dividend of 8 sen per share (MYR 85 million) declared, consistent with the first interim dividend.

• Gross margin for Q2 2025 was 35.3%, up from 29.7% in Q2 2024.

Outlook and guidance

• LNG charter rates expected to remain soft through 2025 due to fleet expansion and subdued demand, with gradual recovery from 2026 as new liquefaction capacity comes online.

• Crude tanker markets projected to remain stable and healthy, supported by OPEC+ exports and limited fleet growth.

• Offshore segment benefits from robust upstream CapEx and strong FPSO demand, especially in South America, Latin America, and Asia Pacific.

• Marine & Heavy Engineering faces challenges from trade tensions and geopolitical conflicts but focuses on diversification and efficiency.