MISC (MISC) Q4 2025 earnings summary

Executive summary

• Profit after tax rose 50% year-over-year to $406 million, supported by strong offshore and petroleum segments, and operating cash flow increased 41% to $1.3 billion, enabling the highest dividend in over 15 years at MYR 0.38 per share.

• Strategic progress was made across Resilient Core, Profitable New Energy, and Decarbonization, with contract awards and asset deliveries including LNG carriers and FSU commissioning.

• Expansion into Brunei and Papua New Guinea, entry into carbon transportation, and joint ventures in LCO2 carriers and ammonia-fuelled tankers marked significant developments.

• Multiple awards for sustainability and safety were received, and a 36% reduction in fleet emissions intensity versus 2008 baseline was achieved.

• Net profit after tax rose to RM1,738.0 million from RM1,233.2 million, with basic earnings per share at 38.1 sen.

Financial highlights

• Full-year revenue declined 10% to $2.6 billion, mainly due to softer gas and marine/heavy engineering segments, but operating profit increased 40% to $649 million, led by offshore turnaround and insurance recoveries.

• Q4 revenue was $677 million, down from $753 million year-over-year, but operating profit rose 41% to $125 million.

• Cash and bank balances stable at $1.5 billion; total borrowings reduced to $3.2 billion, improving gearing ratios.

• Basic earnings per share for the year was 38.1 sen, up from 26.7 sen in 2024.

• Net cash generated from operating activities increased 31.8% to RM5,638.9 million.

Outlook and guidance

• LNG shipping market expected to stabilize and improve in 2026, with modern vessels favored and global liquefaction capacity projected to grow 11% annually through 2030.

• Petroleum shipping outlook remains positive with tight vessel supply and strong demand; offshore segment to benefit from rising upstream capital spend and strong FPSO demand, especially in Asia-Pacific and South America.

• Marine & Heavy Engineering faces volatility but aims to strengthen orderbook and execution.