KUALA LUMPUR (Aug 25): MISC Bhd (KL:MISC) logged a 14.2% drop in net profit for the second quarter from a year ago, mainly due to lower earnings from its gas, petroleum and marine operations.

Net profit for the three months ended June 30, 2025 (2QFY2025) was RM464.4 million versus RM540.9 million a year earlier, an exchange filing showed on Monday. Earnings per share fell to 10.40 sen from 12.10 sen in the same quarter of FY2024. 

The energy shipping firm, which is 51%-owned by Petroliam Nasional Bhd (Petronas), saw revenue for the quarter also dropped 18.3% to RM2.72 billion from RM3.33 billion in 2QFY2024 due to weaker contributions from its gas and marine business segments following vessel disposals, contract expiries and a lower number of projects.

Despite the drop in earnings, MISC declared a dividend of eight sen per share — unchanged from the same quarter last year — with an ex-date of Sept 9 and a payment date of Sept 25.

During the quarter under review, it booked a higher impairment provisions of RM115.5 million from RM34.9 million a year ago.

For the first half of FY2025 (1HFY2025), MISC’s net profit was down 10.1% to RM1.17 billion from RM1.3 billion in 1HFY2024. Revenue fell 20.5% to RM5.54 billion from RM6.97 billion last year.

The weaker topline was also due to lower charter rates and vessel disposals, as well as the stronger ringgit against the US dollar. Additionally, the group also booked an impairment provision during the period.

Looking ahead, MISC expects that liquefied natural gas (LNG) charter rates to remain soft through 2025 amid fleet expansion and subdued tonne-mile demand. The group said its gas assets and solutions division will continue to pursue cost efficiencies and rejuvenate its fleet with modern, eco-efficient carriers, MISC said in its outlook statement.

The petroleum and products segment is projected to remain “relatively healthy” on the back of steady crude tanker demand, modest fleet expansion and potential export increases by Opec+ (oil producing countries), it noted.

Meanwhile, the offshore division sees favourable conditions driven by strong energy demand and growing floating, production, storage and offloading (FPSO) opportunities in South America, West Africa and the Asia-Pacific.

“In marine and heavy engineering, escalating trade tensions and geopolitical conflicts may weigh on global growth and investment sentiment, but we are strengthening our conventional energy portfolio while progressively expanding into new energy solutions,” MISC said.

At noon break, shares in MISC were traded unchanged at RM7.70 on Monday, giving the group a market capitalisation of RM34.37 billion.