Malaysian shipping company MISC has published its financial results for the second quarter and the first half of 2025.
Group revenues for Q2 and H1 2025 were lower than in Q2 and H1 2024, respectively. Group operating profit and profit attributable to equity holders of the corporation for Q2 and H1 2025 were also lower than in the corresponding quarter and half last year.
Group cash flows generated from operating activities in H1 2025 were higher than in H1 2024.
The group revenue of MYR2.721 billion (US$65 million) was MYR608.1 billion (US$144.3 million) or 18.3 per cent lower than in Q2 2024, mainly due to lower revenue from ongoing projects in the marine and heavy engineering segment, coupled with lower earning days from contract expiries, vessel disposals and lower charter rates in the gas assets and solutions segment.
The group operating profit for Q2 2025 of MYR755.2 million (US$179.2 million) was MYR37.0 million (US$8.78 million) or 4.7 per cent lower than the Q2 2024 profit due to lower margin from charter contracts and strengthening of the Malaysian ringgit against the US dollar in the petroleum and products segment.
In addition, the decrease in operating profit was also due to the lower level of project activities in the marine and heavy engineering segment, reflecting new projects’ commencement phase.
The decrease in operating profit was partially cushioned by profit contributions from a 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 MYR464.4 million (US$110.2 milion) was MYR76.5 million (US$18.2 million) or 14.1 per cent lower than the Q2 2024 profit of MYR540.9 million (US$128.3 million) due to the lower operating profit mentioned above.
The group revenue of MYR5.537 billion (US$1.31 billion) in H1 2025 was MYR1.430 billion (US$340 million) or 20.5 per cent lower than the revenue for H1 2024 mainly due to lower revenue from ongoing projects in the marine and heavy engineering segment as several projects are nearing completion.
The reduction in revenue is also attributable to lower earning days from contract expiries and vessel disposals as well as lower charter rates in the gas assets and olutions segment and impact from strengthening of the MYR against the US$ in the current period.
The group operating profit of MYR1.612 billion (US$380 million) in H1 2025 was MYR61.8 million (US$14.7 million) or 3.7 per cent lower than the H1 2024 profit mainly due to lower margins in the petroleum and 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 and 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 MYR1.170 billion (US$280 million) in Q2 2025 was MYR54.2 million (US$12.9 million) or 7.1 per cent lower than the Q2 2024 profit 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 MYR2.375 billion (US$560 million) for H1 2025, higher by MYR812.5 million (US$192.8 million) or 52 per cent compared to H2 2025 cash flows due to higher collection from customers.
In the gas segment, MISC expects LNG carrier charter rates to remain soft through 2025, primarily due to continued robust fleet expansion and subdued tonne-mile demand. Despite the market headwind, the gas assets and 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 and 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. MISC said the petroleum and 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. MISC said these favourable market conditions are accelerating the growth of floating production storage and offloading 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 and 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.