MISC Berhad’s Financial Update: A Mixed Quarter Amidst Market Challenges

In the first quarter of 2025, MISC Berhad, a leading Malaysian industrial company specializing in energy-related maritime solutions, faced a challenging financial landscape. The company reported a 7% decline in net profit, falling to RM705.7 million from RM759.9 million in the same period the previous year. This downturn was primarily driven by a 22.6% drop in revenue, which decreased to RM2.82 billion from RM3.64 billion year-on-year.

The decline in revenue was significantly influenced by lower contributions from key segments, particularly the marine and heavy engineering segment, which saw a 54% reduction in revenue. This was attributed to a combination of factors, including lower LNG charter rates and a stronger Malaysian ringgit against the US dollar, which impacted the profitability of the company’s petroleum and product businesses.

Despite these challenges, MISC Berhad announced a dividend of eight sen per share, with the ex-dividend date set for June 13 and the payment date on June 26. This decision underscores the company’s commitment to returning value to its shareholders, even in a difficult financial period.

Looking ahead, MISC Berhad remains cautiously optimistic about the future. The company highlighted that while the LNG transportation market is currently constrained by an oversupply of new ships and delays in LNG projects, the offshore business is expected to benefit from strong energy demand. The company’s FPSO (Floating Production, Storage, and Offloading) projects are anticipated to drive positive prospects, with an optimistic outlook for the sector.

In addition to its financial performance, MISC Berhad is also making strategic moves to strengthen its position in the industry. The company recently updated the status of a Memorandum of Understanding with Bumi Armada Berhad, signaling potential collaborative efforts to enhance its service offerings and operational capabilities.

The broader market context also played a role in MISC Berhad’s performance. The Malaysian stock market experienced fluctuations, with the FBM KLCI index closing at 1534.3 points, down 1.08 points or 0.07%. This was influenced by global market sentiments, including the extension of tariffs by the US on the EU, which created uncertainty and affected investor confidence.

In summary, while MISC Berhad faced a challenging first quarter in 2025, the company remains focused on navigating the current market conditions and leveraging its strengths in the offshore and FPSO sectors. With strategic initiatives and a commitment to shareholder value, MISC Berhad is poised to adapt and thrive in the evolving maritime industry landscape.