PETALING JAYA: Liquefied natural gas (LNG) carrier spot charter rates are expected to remain soft, primarily due to continued vessel oversupply resulting from strong newbuild deliveries and a higher number of vessels, says MISC Bhd
.
Despite these challenges, the shipping company said its gas assets and solutions (GAS) segment is maintaining its focus on proactively securing long-term charters while advancing its fleet rejuvenation strategy through the delivery of modern, eco-efficient LNG vessels.
MISC released its results for the third quarter ended Sept 30 (3Q25) yesterday, and saw net profit soaring 59.9% year-on-year (y-o-y) to RM541.8mil, even as revenue dipped 5.6% to RM2.8bil.
The group stated the higher profitability was driven by its petroleum and production shipping, offshore business, and marine and heavy engineering segments, with the former two also recording higher turnovers during 3Q25.
Revenue for the period of RM1.28bil was RM118.6mil or 10.2% higher than the previous corresponding quarter’s revenue, primarily driven by higher freight rates and earning days achieved in the period.
It added revenue recognition from the acquisition of a floating production, storage and offloading unit (FPSO) and the transition of an FPSO from the construction to operational phase also flipped the offshore business back to the black with an operating profit of RM198.9mil in 3Q25, from an operating loss of RM33.2mil in 3Q24.
For the nine months ended September, MISC reported results of a similar pattern, with net profit jumping 44% y-o-y to RM1.71bil despite revenue sliding 16.1% to RM8.3bil.
It attributed the lower total turnover primarily to lower revenue from its marine and heavy engineering segment, as most ongoing projects are nearing completion as well as newly secured projects being still in the early stages of execution.
Additionally, the declined revenue in the GAS segment was mainly due to lower earning days resulting from contract expiries, vessel disposals and lower charter rates during the current period.
On the other hand, it said the stronger profitability was mainly contributed from the transition of an FPSO from the construction phase to operational phase, although this was offset by the lower revenue in the GAS segment, lower margin in the petroleum and product shipping segment and lower level of project activities in the marine and heavy engineering segment.
MISC has declared a dividend of eight sen per share for 3Q25, bringing the total dividends declared for the current financial year (FY25) to 24 sen per share, which incidentally is identical to the amount announced for the same period last year.
The group said the crude tanker market is expected to remain firm for the rest of 2025, supported by stronger vessel demand arising from increased output from the Organisation of the Petroleum Exporting Countries or Opec and steady tonne-mile demand along the US-Asia trade routes.
“Charter rates continue to benefit from tight vessel availability, stemming from ongoing sanctions and limited fleet expansion, while geopolitical uncertainties persist in affecting crude trade flows,” it said.
