MISC Group financial Results for the Second Quarter of 2025
KUALA LUMPUR: Highlights of the MISC Group’s Financial Performance for the Second Quarter of 2025:
• Group revenue for the quarter ended 30 June 2025 and the period ended 30 June 2025 was lower than the corresponding quarter and the period ended 30 June 2024.
• Group operating profit and profit attributable to equity holders of the corporation for the quarter and period ended 30 June 2025 were lower than the corresponding quarter and period ended 30 June 2024.
• Group cash flows generated from operating activities for the period ended 30 June 2025 was higher than the corresponding period ended 30 June 2024.
Zahid Osman, MISC President and Group CEO said, “The second quarter of 2025 demonstrates how our delivering Progress strategy positions MISC to adapt, optimise, and capture value and opportunities in a dynamic market landscape. Through disciplined execution, we continued to generate healthy operating cash flows and maintained resilience across our business segments. Most importantly, we have made strides in achieving two additional key strategic milestones that established the foundation for our profitable new energy pillar in the Carbon Capture, Utilisation, and Storage (CCUS) space. I am proud of our team’s commitment to operational excellence and disciplined performance amid an increasingly competitive environment.
As we progress through the year, we will build on this momentum by reinforcing our core businesses, modernising our fleet, and accelerating growth in the new energy value chain. These efforts will ensure we continue to create long-term value for our stakeholders while playing an active role in shaping a sustainable future for the maritime industry.”
SUMMARY OF KEY FINANCIAL INFORMATION | 30 June 2025
Currency: Malaysian Ringgit (MYR)
Group Revenue, Operating Profit, Profit Attributable to Equity Holders of the Corporation for the Quarter Ended 30 June 2025
The Group revenue of RM2,721.3 million was RM608.1 million or 18.3% lower than the quarter ended 30 June 2024 (“corresponding quarter”) of RM3,329.4 million, mainly due to lower revenue from ongoing projects in the Marine & Heavy Engineering segment, coupled with lower earning days from contract expiries, vessel disposals and lower charter rates in the Gas Assets & Solutions segment.
The Group operating profit for the quarter ended 30 June 2025 of RM755.2 million was RM37.0 million or 4.7% lower than corresponding quarter’s profit of RM792.2 million due to lower margin from charter contracts and strengthening of RM against USD in the Petroleum & Products segment. In addition, the decrease in operating profit was also due to the lower level of project activities in the Marine & Heavy Engineering segment, reflecting new projects’ commencement phase. The decrease in operating profit was partially cushioned by profit contributions from an Floating, Production, Storage and Offloading unit (“FPSO”) in the Offshore segment, following its transition from the construction phase to the operational phase.
The profit attributable to equity holders of the corporation of RM464.4 million was RM76.5 million or 14.1% lower than the corresponding quarter’s profit of RM540.9 million due to the lower operating profit mentioned above.
Group Revenue, Operating Profit, Profit Attributable to Equity Holders of the Corporation and Cash Flows Generated from Operating Activities for the 6 Months Period Ended 30 June 2025
The Group revenue of RM5,537.4 million was RM1,430.3 million or 20.5% lower than the revenue for the 6 months period ended 30 June 2024 (“corresponding period”) of RM6,967.7 million mainly due to lower revenue from ongoing projects in the Marine & Heavy Engineering segment as several projects are nearing completion. The reduction in revenue is also attributable to lower earning days from contract expiries and vessel disposals as well as lower charter rates in the Gas Assets & Solutions segment and impact from strengthening of RM against USD in the current period.
The Group operating profit of RM1,612.4 million was RM61.8 million or 3.7% lower than the corresponding period’s profit of RM1,674.2 million mainly due to lower margins in the Petroleum & Products segment. In addition, the lower operating profit was also due to the lower level of project activities as new projects were at the beginning phases in the Marine & Heavy Engineering segment. The decrease in the operating profit was, however, offset by the higher profit in the Offshore segment, primarily contributed from the transition of an FPSO from the construction phase to the operational phase.
The profit attributable to equity holders of the corporation of RM1,170.1 million was RM54.2 million or 7.1% lower than the corresponding quarter’s profit of RM1,300.8 million in line with the lower operating profit as mentioned above, coupled with an impairment provision.
The Group recorded cash flows generated from operating activities of RM2,375.1 million for the period ended 30 June 2025, higher by RM812.5 million or 52.0% compared to RM1,562.6 million in the corresponding quarter due to higher collection from customers.
Moving Forward
In the GAS segment, LNG carrier charter rates are expected to remain soft through 2025, primarily due to continued robust fleet expansion and subdued tonne-mile demand. Despite the market headwind, the Gas Assets & Solutions sub-segment remained committed to improve operational efficiency and cost containment for existing steam vessels and strengthening its fleet rejuvenation strategy through the deployment of new, modern, eco-efficient LNG and ethane carriers. The segment is also actively exploring strategic options including vessel lay-ups and redeployment opportunities for vessels that are currently off charter.
In the Petroleum & Products segment, the crude tanker market is expected to remain relatively healthy through the remainder of 2025, underpinned by a balanced supply-demand outlook. This is supported by the prospects of increased OPEC+ exports, particularly heading into the seasonally stronger winter months, and modest fleet expansion, which is projected to remain limited and help sustain market stability. Nevertheless, the shipping market continues to face uncertainty amid a dynamic geopolitical environment and tightening regulatory requirements. The Petroleum & Products segment remains proactive in seeking opportunities to expand its contract portfolio and optimise fleet utilisation.
The Offshore segment continues to be supported by a positive outlook, underpinned by sustained global energy demand that is driving investment in upstream developments and exploration. These favourable market conditions are accelerating the growth of Floating Production Storage and Offloading (FPSO) activities, particularly in key regions such as South America, West Africa and the Asia-Pacific. The Offshore segment remains focused on strengthening its market presence and pursuing strategic growth opportunities to capture long-term value.
In the Marine & Heavy Engineering segment, escalating trade tensions and prolonged geopolitical conflicts and policy changes are expected to continue to weigh on global economic growth by disrupting supply chains, altering trade flows and contributing to a more cautious investment sentiment. Despite these challenges, the Heavy Engineering sub-segment is focused on building a well-balanced portfolio by strengthening its conventional energy business and progressively expanding into the new energy sector. Concurrently, the Marine sub-segment will continue to pursue vessel repair and conversion projects, while enhancing yard infrastructure and optimising operational efficiency to sustain long-term competitiveness.
Source: MISC Berhad