KUALA LUMPUR: MISC Bhd recorded its first loss in over two years, reporting a net loss of RM446.2 million for the fourth quarter ended Dec 31, 2024 (4Q24), compared to a net profit of RM627.3 million a year ago.
In a filing to Bursa Malaysia today, the group reported that its earnings were impacted by increased provisions for asset writedowns and a decline in revenue across all business segments.
Revenue for the quarter fell 22.7 per cent to RM3.31 billion from RM4.28 billion previously, mainly due to lower recognition of revenue from the conversion of a floating, production, storage and offloading (FPSO) unit.
As a result, the group posted a loss per share of 10 sen against earnings per share of 14.10 sen in 4Q23.
Despite the loss, MISC maintained its dividend at 12 sen per share, payable on March 20, keeping its total FY2024 payout unchanged at 36 sen per share, the same as in 2023.
For the full financial year, MISC’s net profit declined 44 per cent to RM1.19 billion from RM2.12 billion a year ago, while revenue fell 7.3 per cent to RM13.24 billion from RM14.27 billion.
Commenting on the results, MISC president and group chief executive officer Zahid Osman said this quarter has been one of both progress and challenges for the group as it is taking actions to deliver more energy with less emissions under its #deliveringProgress strategy.
He added that the group’s performance was marked by commendable achievements, unexpected market downturns, and project delivery challenges.
“Despite these hurdles, we continue to strengthen the resilience of our core businesses by securing contracts for newbuild LNG Carriers (LNGC) and taking control of an FPSO unit from our joint venture (JV) partner.
“Additionally, we have developed strategic partnerships to pursue new energy opportunities in the ammonia value chain,” he said in a separate statement.
Zahid noted that at the same time, a tough operating environment has impacted our financial performance especially for the gas business, which led to lower revenue, operating profit, and cash flows compared to last year.
He said notwithstanding these challenges, the group is able to maintain its returns commitment to the shareholders.
“While the year had its challenges, we are already taking steps to enhance performance and reinforce our adaptability as we pursue sustainable growth under #deliveringProgress strategy.
“We remain firm in our commitment to seize opportunities that drive greater value for our stakeholders,” he added.
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