MISC (MISC) Q4 2024 earnings summary

Executive summary

• FY2024 experienced lower revenue and profit due to weak LNG shipping markets, project delays, and significant asset impairments, though petroleum and heavy engineering segments delivered strong results.

• Q4 2024 saw a net loss after tax, mainly from higher impairment provisions and lower segmental performance.

• Strategic investments included new LNG carrier charters, FPSO project milestones, and sustainability-linked financing awards.

• Total comprehensive income for FY2024 was negative, reflecting currency translation losses.

• Dividend payouts were maintained or increased, with MYR 0.36 per share declared and a fourth tax-exempt dividend of 12.0 sen per share approved.

Financial highlights

• FY2024 revenue declined year-over-year, with RM13,237.5 million reported, and operating profit at RM2,593.7 million, down 10% from the prior year.

• Group profit after tax was MYR 270 million, a 57% decline year-over-year, mainly due to lower operating profit and higher impairment in the gas segment.

• Net profit attributable to equity holders for FY2024 was RM1,193.5 million, down from RM2,123.5 million in FY2023.

• Cash flow from operations declined by 10% year-over-year, with net cash generated from operating activities at RM4,276.9 million.

• Total assets as at 31 December 2024 stood at RM60,435.2 million, down 7.1% from the previous year.

Outlook and guidance

• LNG shipping market expected to remain soft through 2025 due to vessel oversupply and delayed projects, with recovery anticipated post-2026 as new liquefaction capacity comes online.

• Petroleum shipping outlook remains positive for 2025, supported by high tonne-mile demand and minimal fleet expansion.

• Offshore segment outlook is favorable, driven by steady oil prices, sustained global oil demand, and new FPSO operations.

• Marine & Heavy Engineering segment is poised for growth amid steady upstream capex and energy security concerns.

• By 2027, 19 new LNG carriers are expected to be delivered on long-term charter, strengthening future revenue and cash flow.