Malaysian oil and gas shipping company, MISC, part of the Petronas empire, has recorded its first loss for over two years.
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The LNGC and tanker owner reported a net loss of RM446.2 mill for the fourth quarter of 2024, compared to a net profit of RM627.3 mill in 4Q23.
In a filing to the Bursa Malaysia, MISC said that its earnings were hit by increased provisions for asset write downs and a decline in revenue across all business segments.
Revenue for the quarter fell 22.7% to RM3.31 bill from RM4.28 bill previously, mainly due to lower recognition of revenue from the conversion of an FPSO).
Despite the loss, MISC maintained its dividend at 12 sen per share, payable on 20th March, keeping its total annual payout unchanged at 36 sen per share, the same as in the previous year.
For the full 2024 financial year, MISC's net profit declined 44% to RM1.19 bill from RM2.12 bill a year ago, while revenue fell 7.3% to RM13.24 bill from RM14.27 bill.
Commenting on the results, MISC President and group CEO, Zahid Osman, said that the quarter had been one of both progress and challenges for the group as it takes action to deliver more energy with less emissions under its ‘Delivering Progress’ strategy.
He said that the group's performance was marked by commendable achievements, unexpected market downturns, and project delivery challenges.
"Despite these hurdles, we continue to strengthen the resilience of our core businesses by securing contracts for newbuild LNGCs and taking control of an FPSO unit from our joint venture (JV) partner.
"Additionally, we have developed strategic partnerships to pursue new energy opportunities in the ammonia value chain," he said in a separate statement.
Zahid also said that a tough operating environment had impacted MISC’s financial performance especially for the gas business, which led to lower revenue, operating profit, and cash flows, compared to 2023.
"While the year had its challenges, we are already taking steps to enhance performance and reinforce our adaptability, as we pursue sustainable growth under ‘Delivering Progress’ strategy.
"We remain firm in our commitment to seize opportunities that drive greater value for our stakeholders," he said.
