MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 02 03 04 05 06 07 10 11 12 13 SEC 09 FINANCIAL REVIEW 140 www.miscgroup.com 141 www.miscgroup.com 08 #deliveringProgress GROUP FINANCIAL REVIEW GROUP FINANCIAL REVIEW OPERATING PROFIT AND PROFIT BEFORE TAXATION Group operating profit of RM2,776.5 million was 7.0% higher than FY2024 operating profit of RM2,593.7 million, mainly driven by the Offshore segment due to revenue recognised in relation to the commencement of operations of FPSO Marechal Duque de Caxias as well as recovery from an FSO insurance settlement. However, the increase in the Group’s operating profit was offset by the lower revenue in Gas Assets & Solutions segment and lower level of project activities in the Marine & Heavy Engineering segment. The Group profit before taxation of RM1,862.0 million in FY2025 was RM578.5 million or 45.1% higher than the RM1,283.5 million recorded in FY2024 aligned with increase in operating profit, improved by lower finance costs, lower impairment provisions recognised, higher gain on vessel disposals, and gain on acquisition of subsidiaries recognised during the year. EARNINGS PER SHARE (SEN) Profit attributable to the equity holders of the Corporation amounting to RM1,700.2 million translates to earnings per share of 38.1 sen (RM) in FY2025, compared to 26.7 sen (RM) in FY2024. DIVIDENDS The Board had approved and declared on quarterly basis a total tax-exempt dividend of 38.0 sen (RM) per share or RM1,696.2 million. The amount reflects the Board’s approval and declaration of an additional dividend of 2.0 sen (RM) as compared to 36.0 sen (RM) for FY2024. TOTAL ASSETS Group total assets as at 31 December 2025 of RM53,014.4 million was 12.3% lower than the Group total assets as at 31 December 2024 of RM60,435.1 million, mainly due to translation impact from Malaysian Ringgit (MYR) against the United States Dollar (USD) for total assets, depreciation and impairment charges on ships and amortisation of finance lease receivables during the year. TOTAL LIABILITIES Group total liabilities as at 31 December 2025 of RM18,309.9 million was 17.2% lower than the Group total liabilities as at 31 December 2024 of RM22,121.7 million, mainly due to the weakening of the USD and repayment of USD400 million Global Medium Term Notes that matured in April 2025. EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE CORPORATION Group equity attributable to equity holders of the Corporation as at 31 December 2025 of RM34,007.4 million was 9.6% lower than the Group equity attributable to equity holders of the Corporation as at 31 December 2024 of RM37,604.0 million, mainly due to unfavourable movement of currency translation reserve following strengthening of MYR against the USD. CASH FLOWS FROM OPERATING ACTIVITIES The Group recorded cash flows generated from operating activities of RM5,656.1 million which was 32.2% higher as compared to cash flows generated from operating activities of RM4,276.8 million in the corresponding year. This was contributed by higher collection from customers and lower payments made to creditors. However, the Group’s cash balance remains healthy at RM6,096.4 million. Group revenue for the financial year ended 31 December 2025 (FY2025) of RM11,146.1 million was 15.8% lower than the financial year ended 31 December 2024 (FY2024) revenue of RM13,237.5 million. This was mainly attributable to the Gas Assets & Solutions segment due to lower construction revenue, lower earning days from vessel disposals, contract expiries, vessel lay-ups, and lower charter rates during the period. The Marine & Heavy Engineering segment similarly reported lower revenue as ongoing projects approached completion and newly secured projects remained in early execution stages. However, the overall decrease was partially offset by higher revenue from the Petroleum & Products segment, driven by higher freight rates and earning days, as well as the Offshore segment, which benefited from revenue recognition associated with the commencement of operations of Floating Production, Storage and Offloading unit FPSO Marechal Duque de Caxias and the acquisition of an FPSO. REVENUE The Group’s gross debt-to-equity ratio as at 31 December 2025 of 0.37 was lower compared to the Group’s gross debt-to-equity ratio as at 31 December 2024 of 0.40 following the decrease in total interest-bearing loans and borrowings following higher repayments made during the year. The Group’s net debt-to-equity ratio of 0.20 as at 31 December 2025 was also lower compared to net debt-to-equity ratio of 0.23 as at 31 December 2024. GEARING RATIO The Group’s approved and contracted committed CAPEX as at the end of FY2025 stood at RM7,858.9 million. Based on our cash position as at the end of FY2025 and existing funding facilities, the Group is well positioned to finance these committed capital expenditure and pursue targeted strategic investments. CAPEX REQUIREMENTS PETROLEUM & PRODUCTS The Petroleum & Products segment’s revenue of RM5,169.8 million was RM125.7 million or 2.5% higher than the previous year’s revenue of RM5,044.1 million driven primarily by higher freight rates and earning days achieved. Conversely, the segment’s operating profit of RM1,412.7 million was RM70.0 million or 4.7% lower than the previous year’s operating profit of RM1,482.7 million, due to higher vessel operating cost driven by higher utilisation of spot vessels and higher charter hire costs from increased in-charter days albeit higher revenue explained above. Revenue (RM million) Operating Profit (RM million) 2025 2025 2024 2024 5,169.8 5,044.1 1,412.7 1,482.7 SEGMENTAL PERFORMANCE GAS ASSETS & SOLUTIONS Gas Assets & Solutions segment’s revenue of RM2,095.0 million was RM892.4 million or 29.9% lower than the previous year’s revenue of RM2,987.4 million, mainly due to lower construction revenue and lower earning days from contract expiries, vessel disposals, vessel lay-ups and lower charter rates during the year. The segment’s operating profit of RM692.4 million was RM355.3 million or 33.9% lower than the previous year’s profit of RM1,047.7 million, due to lower revenue as explained above offset against lower vessel operating costs. Revenue (RM million) Operating Profit (RM million) 2025 2025 2024 2024 2,095.0 2,987.4 692.4 1,047.7
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