KUALA LUMPUR: MISC Bhd
's bottomline rose in the third quarter ended Sept 30, 2025, with the largest growth contribution arising from a floating, production, storage and offloading (FPSO) vessel, which had transitioned to the operational phase after the completion of its construction.
According to the group, there was also positive contribution from the petroleum and products segment, as well as marine and heavy engineering segment.
"MISC achieved stronger profitability and higher operating cash flows to date reflecting stronger operational agility despite a less favourable market environment," said president and group CEO Zahid Osman in the group's results statement.
In the third quarter ended Sept 30, 2025, MISC posted a net profit of RM541.8mil, as compared to RM338.9mil in the year-ago quarter. Earnings per share rose to 12.1 sen from 7.6 sen previously.
The group reported lower quarterly revenue of RM2.8bil as compared to RM2.96bil in the comparative quarter.
It said this was mainly due to lower revenue from ongoing projects in the marine and heavy engineering segment, due to projects approaching completion as well as newly secured projects being in the early stages of execution, coupled with lower earning days from contract expiries, vessel disposals and lower charter rates in the gas assets and solutions segment.
During the nine-month period to Sept 30, 2025, MISC recorded a net profit of RM1.71bil against RM1.64bil in 9MFY24, while revenue dropped to RM8.33bil from RM9.93bil in the previous-year period.
The group declared a third interim dividend of eight sen per share, with entitlement date on Dec 9, 2025, and payable on Dec 18, 2025.
Moving forward, MISC expects LNG carrier spot charter rates to remains soft, primarily due to continued vessel oversupply resulting from strong newbuild deliveries and increasing number of vessels coming off long-term charters.
"Coupled with high inventory levels in Europe and subdued demand in Asia, spot charter rates are expected to come under sustained downward pressure for the remainder of the year.
"The prevailing weakness in the spot market presents potential asset impairment risks that may affect the segment’s long-term asset valuations," it said.
Meanwhile, in the petroleum and products segment, the crude tanker market is expected to remain firm for the remainder of 2025, supported by strong vessel demand.
The offshore segment remains supported by a favourable industry outlook, underpinned by firm global energy demand that is fuelling ongoing investment in upstream exploration and production.
In the marine and heavy engineering segments, the oil and gas market outlook remains stable despite ongoing trade policy uncertainties and geopolitical tensions.
