INTEGRATED ANNUAL REPORT 2024 106 107 SECTION 9: FINANCIAL REVIEW www.miscgroup.com MISC BERHAD Group Financial Review REVENUE Group revenue for the financial year ended 31 December 2024 (FY2024) of RM13,237.5 million was 7.2% lower than the financial year ended 31 December 2023 (FY2023) revenue of RM14,271.7 million, primarily driven by the lower recognition of revenue from the conversion of an FPSO following lower project progress upon achievement of its first oil in the fourth quarter of the year in the Offshore segment. Gas Asset & Solutions segment’s revenue also decreased due to lower earning days from contract expiries and lower charter rates during the year. However, this decrease was offset by higher revenue contributions from the Marine & Heavy Engineering segment, which recorded higher revenue from ongoing projects and higher conversion activities. OPERATING PROFIT AND PROFIT BEFORE TAXATION Group operating profit of RM2,593.7 million was 10.0% lower than FY2023 operating profit of RM2,881.4 million due to the lower profit in the Offshore segment following lower project progress as well as higher cost provision of an FPSO. Gas Assets & Solutions segment also recorded lower profit from lower revenue coupled with higher operating costs. The decrease in the operating profit was, however, offset by higher margin in the Petroleum & Products segment as well as higher operating profit in the Marine & Heavy Engineering segment from the recognition of cost recovery claims and better cost discipline. The Group reported a lower profit before taxation of RM1,283.5 million in FY2024, which was RM810.2 million or 38.7% lower than the RM2,093.7 million recorded in FY2023 mainly due to higher impairment provisions recognised during the year. EARNINGS PER SHARE (SEN) Profit attributable to the equity holders of the Corporation amounting to RM1,193.5 million translates to earnings per share of 26.7 sen in FY2024, compared to 47.6 sen in FY2023. DIVIDENDS Similarly to FY2023, the Board had approved and declared on quarterly basis a total tax exempt dividend of 36.0 sen per share or RM1,606.9 million in FY2024. TOTAL ASSETS Group total assets as at 31 December 2024 of RM60,435.1 million was 7.1% lower than the Group total assets as at 31 December 2023 of RM65,060.1 million. The decrease in the Group’s total assets were mainly due to the higher impairment provisions on ships and receivables during the year. TOTAL LIABILITIES Group total liabilities as at 31 December 2024 of RM22,121.7 million was 11.8% lower than the Group total liabilities as at 31 December 2023 of RM25,094.3 million, mainly due to repayment of interest-bearing loans and borrowings during the year. Group Financial Review EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE CORPORATION Group equity attributable to equity holders of the Corporation as at 31 December 2024 of RM37,604.0 million was 4.3% lower than the Group equity attributable to equity holders of the Corporation as at 31 December 2023 of RM39,285.8 million, mainly due to unfavourable movement in currency translation following strengthening of Malaysian Ringgit (RM) against the United States Dollar (USD) . CASH FLOWS FROM OPERATING ACTIVITIES The Group recorded cash flows generated from operating activities of RM4,276.9 million which was lower by 24.9% compared to cash flows generated from operating activities of RM5,696.3 million in the corresponding year. This was contributed by higher payments made to creditors. However, the Group’s cash balance remains healthy at RM6,676.6 million. GEARING RATIO The Group’s gross debt-to-equity ratio as at 31 December 2024 of 0.40 was lower compared to the Group’s gross debt-to-equity ratio as at 31 December 2023 of 0.44 following the decrease in total interest-bearing loans and borrowings due to higher repayments made during the year. The Group’s net debt-to-equity ratio of 0.23 as at 31 December 2024 was also lower compared to net debt-to-equity ratio of 0.25 as at 31 December 2023. CAPEX REQUIREMENTS The Group’s approved and contracted committed CAPEX as at the end of FY2024 stood at RM7,836.1 million. Based on our cash position as at the end of FY2024 and existing funding facilities, the Group is well positioned to finance these committed capital expenditure and pursue targeted strategic investments. SEGMENTAL PERFORMANCE Gas Assets & Solutions Gas Assets & Solutions segment’s revenue of RM2,987.4 million was RM276.5 million or 8.5% lower than the previous year’s revenue of RM3,263.9 million, mainly due to lower earning days from contract expiries and lower charter rates in the current year. The segment’s operating profit of RM1,047.7 million was RM524.4 million or 33.4% lower than the previous year’s profit of RM1,572.1 million, mainly from lower revenue coupled with higher operating costs. Revenue (RM million) Operating Profit (RM million) 2024 2023 3,263.9 2,987.4 2024 2023 1,572.1 1,047.7
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