KUALA LUMPUR: MISC Bhd
posted a net loss of RM446.2mil in the quarter ended Dec 31, 2024, as the bottomline was impacted by lower revenue across its business segments.
The group reported revenue of RM3.31bil in the quarter under review, down from RM4.28bil in the year-ago quarter.
It recorded a loss per share of 10 sen as compared to earnings per share of 14.1 sen previously.
Over the full financial year, MISC's net profit came to RM1.19bil, down from RM2.12bil in FY23, while revenue slipped to RM13.24bil from RM14.27bil in the previous year.
The board of directors declared an interim dividend of 12 sen per share, going ex on March 7, 2025, and payable on March 20, 2025.
According to the group, revenue for its offshore segment slumped 52.4% year-on-year (y-o-y) to RM419.7mil due to lower recognition of revenue from the conversion of a floating, production, storage and offloading unit (FPSO) following lower project progress upon achievement of its first oil in this quarter.
The marine and heavy engineering segment, meanwhile, dropped 26.8% y-o-y to RM817.6mil due to lower revenue from ongoing heavy engineering projects as several projects nearing completion, leading to reduced activity and revenue generation.
Revenues in the petroleum and product shipping, and gas assets and solutions segments were down 12.8% and 3% to RM1.21bil and RM849.5mil respectively.
Moving forward, MISC said the outlook for LNG Carrier (LNGC) rates is expected to remain soft in 2025 driven by the continued influx of new vessels and delays in additional supply from new LNG liquefaction projects.
"However, LNGC rates are expected to recover post-2026, driven by the gradual increase in LNG supply as the delayed projects become operational," it said.
For the petroleum shipping segment, the overall tanker market outlook for 2025 remains positive, supported by high tonne-mile demand from continuous vessel rerouting and from long-haul Atlantic-Asia trade, as well as minimal fleet expansion.
MISC said the petroleum and products segment's income will continue to be supported by its fleet of long-term chartered vessels and niche lightering business.
Meanwhile, the offshore segment is supported by steady oil prices and sustained global oil demand continue to encourage investments in offshore projects.
"The fourth quarter of 2024 saw the FPSO Marechal Duque de Caxias successfully achieved first oil and commence operations. This milestone, together with revenue from existing long-term contracts, is expected to further strengthen the segment’s financial performance," siad MISC.
For the marine and heavy engineering segment, upstream capex spending is expected to grow steadily amidst heightened geopolitical tensions and continued energy security concerns.
The heavy engineering sub-segment is poised to capitalise on the sustained strength of the upstream oil and gas demand and pursue growth opportunities to ensure a well-balanced portfolio across both conventional and new energy sectors.
In the marine sub-segment, the increase in upstream activities is expected to drive greater opportunities for conversion, repair and maintenance services, which the sub-segment will continue to pursue to strengthen its market position and ensure stable income.
