KUALA LUMPUR (May 25): MISC Bhd (KL:MISC) said its first-quarter net profit was up 5% from a year earlier, driven by gains from the disposal of ships and higher profits from associates and joint ventures.

Net profit at the national oil-and-gas shipping company for the three months ended March 31, 2026 (1QFY2026) was RM741.4 million, an increase of RM35.7 million when compared to the same period a year earlier. Revenue for the quarter rose 2.7% year-on-year to RM2.89 billion. 

The company declared an interim dividend of eight sen per share, payable on June 25.

A RM155.3 million gain on ship disposal helped prop up operating profit, which came in 10.5% lower at RM766.8 million on the strengthening of the ringgit against the US dollar. Lower revenue from liquefied natural gas (LNG) carrier service and reduced offshore earnings due to the shutdown of a floating production, storage and offloading (FPSO) unit dragged down performance. However, this was partly offset by higher revenue from the crude and petroleum tanker service.

Net cash from operating activities was 61.7% higher at RM1.25 billion for the quarter from RM773.1 million. MISC, in its filing with Bursa Malaysia, said LNG carrier rates have risen slightly due to geopolitical tensions in the Middle East and are expected to stay above pre-conflict levels, supported by strong long-term LNG demand. However, older steam vessels remain less in demand as customers prefer newer, more efficient ships. The company is focusing on upgrading its fleet, securing long-term contracts, and managing idle vessels by reducing costs or redeploying assets.

In the oil tanker segment, crude tanker rates jumped in March 2026 due to disruptions in the Strait of Hormuz, then eased but stayed elevated. Rates are expected to remain strong depending on how Middle East tensions develop. The company is focusing on stable income contracts and upgrading its fleet with more efficient dual-fuel vessels.

The offshore business outlook is strong, supported by expected new FPSO projects across South America, Africa, and Asia-Pacific, driven by high oil prices and geopolitical factors. The marine and heavy engineering segment remains mixed, with uncertainty from global tensions but supported by demand for ship repairs, conversions, and offshore-related work. The company is focusing on efficient project delivery and strengthening its order book across both traditional and new energy projects.

“MISC delivered a resilient first quarter in 2026, achieving higher profitability and robust operating cash flows despite continued market volatility across segments. This performance reflects the strength of our diversified business portfolio, disciplined cost management and our ability to capture value across evolving market conditions," MISC president and group chief executive officer Zahid Osman said in a separate statement. 

"We continue to execute our strategic priorities with discipline through fleet modernisation, portfolio optimisation, securing long-term charter contracts and the pursuit of opportunities across both conventional and lower-carbon maritime solutions,” he added.

MISC’s share price was up 1.22% at RM8.33 at Monday's noon break, valuing the group at RM37.18 billion.