MISC (MISC) Q4 2024 earnings summary

Executive summary

• 2024 was marked by lower revenue, profit, and cash flow, with significant challenges in Gas and Offshore segments, including higher impairment provisions and project delays.

• The group maintained resilience through fleet renewal, operational excellence, and strategic investments in LNG carriers, FPSO projects, and sustainability-linked financing.

• Q4 2024 saw a net loss after tax, mainly due to higher impairments and lower segmental performance.

• Total dividend for 2024 was maintained, with a payout of MYR 0.50 per share and a fourth tax exempt dividend of 12.0 sen per share approved for March 2025.

Financial highlights

• FY2024 revenue declined year-over-year, with group revenue down by MYR 323 million and operating profit falling to MYR 550 million; Q4 2024 revenue was USD 753 million, up QoQ but down YoY.

• Group profit after tax was MYR 270 million, down 57% YoY, with significant asset impairments in Gas and Offshore segments.

• Adjusted profit after tax (excluding impairments) was MYR 443 million.

• Cash flow from operations declined by 10% YoY, with FY2024 net cash from operations 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 in 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, with steady oil prices, new FPSO operations, and sustained global demand driving project growth.

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