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The shipping firm said its gas assets and solution business, which includes a fleet of LNG and ethane carriers, posted first-quarter revenue of 636.2 million ringgit ($149 million), a drop of 22.6 percent compared to the same period last year.
MISC attributed the drop to lower earning days from contract expiries, vessels disposal, and lower charter rates in current quarter.
Moreover, MISC’s gas assets and solution business reported operating profit of 303.8 million ringgit ($71.3 million) in the first quarter.
Operating profit decreased by 15.9 percent compared to the same period last year due to lower revenue.
MISC is one of the largest operators of LNG carriers and most of them are on long-term charters.
According to MISC’s website, it operates a fleet of 29 LNG carriers, including three as part of joint ventures. It also has one chartered LNG bunkering vessel.
In addition to its operational vessels, MISC has LNG carriers on order.
Last year, MISC ordered two LNG carriers from South Korea’s Samsung Heavy. These vessels will serve Petronas under charter deals.
Group profit, revenue down
MISC’s operating profit of 857.2 million ringgit ($201.4 million) in the first quarter dropped by 2.4 percent year-on-year.
MISC attributed the drop mainly to lower profit in the gas assets and solutions segment in tandem with the lower revenue.
Group revenue of 2,816.1 million ringgit dropped by 22.6 percent compared to the same period before.
The Malaysian firm said this is due to lower revenue from ongoing projects in the marine and heavy engineering segment, as several projects are nearing completion.
Also, the reduction in revenue is also attributable to lower earning days from contract expiries and vessel disposals, as well as lower charter rates in the gas assets and solutions segment and impact from strengthening of RM against USD in the current quarter.
Outlook
Looking forward, MISC said LNG carrier spot rates are expected to remain subdued from the continuous oversupply of vessels due to high newbuild deliveries and delays in new LNG liquefaction projects.
MISC said rates are anticipated to improve 2026 onwards, supported by a gradual increase in LNG supply as delayed liquefaction projects become operational.
“Despite these challenges, the gas assets and solutions segment remains focused on executing strategic growth initiatives and exploring strategic opportunities for its spot vessels to weather the downturn,” the company said.