MISC (MISC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $662 million (RM2,797.2 million), up 5% quarter-on-quarter but down 5.6% year-on-year, supported by petroleum and offshore segments.

• Profit after tax rose to $131 million (RM552.9 million), up 19% quarter-on-quarter and 64% year-on-year, reflecting strong operating results and vessel disposals.

• Cash flow from operations was $327 million (RM3,758.7 million), up 32% year-on-year, enabling a third interim dividend of MYR 0.08 per share.

• Delivered three LNG carriers to QatarEnergy, advanced decarbonisation initiatives, and received ESG and safety awards.

• Total comprehensive income for 9M 2025 was impacted by currency translation losses, resulting in a comprehensive loss of RM658.8 million.

Financial highlights

• Q3 2025 revenue: $662 million, up 5% QoQ, down 1% YoY; operating profit: $157 million, up 26% YoY but down 11% QoQ due to higher costs.

• Profit after tax: $131 million, up 19% QoQ and 64% YoY; cash flows from operations: $327 million, up 32% YoY.

• Dividend declared: 8 sen per share; basic EPS for Q3 2025 was 12.1 sen.

• Offshore segment revenue nearly doubled year-on-year, driven by FPSO Kikeh acquisition and FPSO Mero 3 entering operation.

• Gas segment revenue declined 19% year-on-year due to contract expiries, vessel disposals, and softer spot rates.

Outlook and guidance

• LNG shipping market expected to remain soft through 2025 due to vessel oversupply and subdued demand, with recovery post-2026 as new LNG supply comes online.

• Eight gas vessel contracts expiring over the next three years, but 20 new LNG vessels scheduled for delivery.

• Petroleum shipping market expected to remain firm through 2025, supported by OPEC+ output and strong demand.

• Offshore market outlook is robust, with upstream CapEx projected to grow and strong demand for FPSOs, especially in Latin America, South America, and Asia-Pacific.

• Marine & Heavy Engineering focuses on project execution and orderbook growth amid stable oil and gas market.