Malaysia’s LNGC, tanker owner and heavy engineering company, MISC, part of the Petronas empire, suffered lower first quarter revenue from ongoing projects in the Marine & Heavy Engineering Segment, as several were nearing completion.
The revenue reduction was also attributable to lower earning days from contract expirations and vessel disposals, as well as lower charter rates in the Gas Assets & Solutions Segment and impact from strengthening of RM against USD in the current quarter.
Group revenue of RM2,816.1 mill was RM822.2 mill or 22.6% lower than 1Q24 of RM3,638.3 mill.
MISC’s operating profit for 1Q25 was RM857.2 mill, some RM24.8 mill or 2.8% lower than the corresponding quarter's profit of RM882.2 mill, mainly due to lower profit in the Gas Assets & Solutions segment in tandem with the lower revenue.
However, this was mitigated by a one-time gain arising from the startup of a new lease contract for an FPSO in the Offshore Segment, and successful close-out of post sail-aways projects in the Marine & Heavy Engineering Segment.
The profit of RM705.7 mill was RM54.2 mill or 7.1% lower than 1Q24’s profit of RM759.9 mill in line with the lower operating profit as mentioned above, coupled with an impairment provision.
MISC said that LNGC spot rates were expected to remain subdued from the continuous oversupply of vessels, due to high number of newbuilding deliveries and delays in new LNG liquefaction projects.
Rates were anticipated to improve from 2026 onwards, supported by a gradual increase in LNG supply, as delayed liquefaction projects become operational.
Despite these challenges, the Gas Assets & Solutions segment remained focused on executing strategic growth initiatives and exploring strategic opportunities for its spot vessels to weather the downturn, the company said.
