KUALA LUMPUR (Nov 24): MISC Bhd (KL:MISC) said its net profit rose 60% in the third quarter from a year earlier thanks to one-off gains and a turnaround at its production unit.
Net profit for the three months ended Sept 30, 2025 (3QFY2025) was RM541.8 million, or 12.10 sen per share, MISC said in an exchange filing. The oil-and-gas shipping company booked gains on disposal of ships totalling RM130.6 million during the quarter.
Revenue for the quarter, however, was down 6% year-on-year to RM2.8 billion, mainly due to lower earnings days from contract expiries, vessel disposals and lower charter rates at the group's mainstay business of operating one of the world’s largest fleet of liquefied natural gas (LNG) carriers.
“LNG carrier spot charter rates are expected to remain soft, primarily due to continued vessel oversupply resulting from strong newbuild deliveries and an increasing number of vessels coming off long-term charters,” MISC flagged.
In the remaining months of the year, high inventory levels in Europe and subdued demand in Asia are expected to pressure charter rates, and the prevailing weakness in the spot market presents potential asset impairment risks, the company warned.
However, the crude tanker market is expected to remain firm from rising output, with charter rates supported by tight vessel supply due to sanctions and limited fleet expansion, though geopolitical risks continue to cloud trade flows, the company said.
As for the offshore segment, which involves construction and operations of floating production storage and offloading (FPSO) vessels, the outlook remains favourable thanks to firm energy demand fuelling ongoing investment in upstream exploration and production.
The segment swung to an operating profit of RM198.9 million from a loss of RM33.2 million, aided by the transition of an FPSO from construction to operations.
The company declared a dividend of eight sen per share, payable on Dec 18, bringing the total to 24 sen per share so far this year.
For the first nine months, MISC’s net profit totalled RM1.71 billion, an increase of about 4% when compared to the same period last year. Revenue fell 16% to RM8.33 billion, partly dragged by a strengthening ringgit that eroded US dollar receipts.