MISC (MISC) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 faced significant headwinds in gas and offshore segments, with revenue and profit declines, but stable cash flow was maintained and a third interim dividend of $0.08/share ($86M) was declared for December 2024.

• FPSO Marechal Duque de Caxias (Mero 3) achieved first oil on October 30 and received final acceptance from Petrobras in early November, marking a major project milestone.

• A letter of intent was signed with Petronas LNG for two newbuild LNG vessels on long-term charter, supporting fleet rejuvenation and future growth.

• A non-binding MoU was signed with Bumi Armada to explore a potential merger of offshore businesses, aiming to create a stronger FPSO-focused entity.

• MHB secured a subcontract for a mobile water injection facility conversion and signed an MoU for green retrofit solutions.

Financial highlights

• Q3 2024 revenue declined 5% quarter-on-quarter and 8-11.9% year-on-year, mainly due to lower gas and offshore segment revenue.

• Profit after tax dropped 34% quarter-on-quarter and 7% year-on-year, but year-to-date profit after tax remains up 25%.

• Adjusted cash flow for Q3 was stable compared to both the previous and corresponding quarters.

• Dividend declared at USD 86 million, up 2% QoQ and 19% YoY.

• A non-recurring impairment of MYR 4 million was recorded in the gas segment.

Outlook and guidance

• LNG shipping market faces softer spot rates due to subdued demand and high vessel deliveries; asset impairment risks persist.

• Petroleum shipping outlook remains steady, supported by long-term charters and strong Atlantic-Asia trade.

• Offshore business is supported by stable oil prices and long-term contracts, with focus on timely project completion.

• Marine & Heavy Engineering expects stable upstream capex and aims to mitigate supply chain and price volatility risks.

• The group remains committed to its 2030 emission reduction targets and ongoing investment in efficient assets.