KUALA LUMPUR (Feb 21): MISC Bhd (KL:MISC) sank into the red for the first time in more than two years, hurt by a surge in provisions for writedown in assets and lower revenue at all business segments.

Net loss for the fourth quarter ended Dec 31, 2024 (4QFY2024) was RM446.2 million, its first quarterly loss since 2QFY2022. The company booked RM735.5 million in impairment provisions, while revenue for the quarter fell 23% year-on-year to RM3.31 billion.

MISC nevertheless maintained its dividend payout at 12 sen per share, payable on March 20, bringing its total distribution for FY2024 to 36 sen per share, and unchanged versus 2023.

Looking ahead, MISC expects the liquefied natural gas (LNG) carrier market to remain soft in 2025 due to an influx of new vessels and delays in additional supply from upcoming liquefaction projects. Charter rates will only recover after 2026, as the delayed projects come online, it noted.

Outlook for the tanker market, meanwhile, remains robust, supported by strong demand from vessel rerouting and long-haul Atlantic-Asia trade, amid minimal fleet expansion. MISC expects petroleum shipping earnings to remain steady, backed by long-term charters and niche lightering business.

The offshore segment is also poised for growth, driven by steady oil prices and sustained demand, which continue to spur investments in offshore projects, helping to keep up increases in floating production storage and offloading (FPSO) vessels in South America, West Africa, and the Asia-Pacific region.

The heavy engineering division is expected to benefit from increasing upstream capital expenditure amid geopolitical tensions and ongoing energy security concerns, MISC said, adding that its gas assets segment will continue to explore opportunities to convert vessels into floating storage solutions.

For the full financial year, MISC’s net profit declined 44% to RM1.19 billion, weighed by its offshore business, following lower project progress, as well as higher cost provisions. The gas assets business recorded lower earning days and charter rates, while operating costs climbed.

Revenue for FY2024 slipped 7.3% to RM13.24 billion, largely due to a decline in the final months of 2024.

At Friday’s noon break, MISC’s shares were up nine sen or 1.23% at RM7.41, giving it a market capitalisation of RM33 billion.