The MISC Group revenue of RM2,891.4 million ($729 million) was 2.7% higher than the revenue for the period ended March 31, 2025.
The increase was mainly due to higher revenue from the company’s Petroleum and Product Shipping segment, primarily driven by higher freight rates and earning days, and higher revenue from Marine and Heavy Engineering segment, primarily from the ongoing projects advancing into higher construction phases partially offset by lower revenue from post sail-away projects.
The increase in Group’s revenue was, however, offset by lower revenue in the Gas Assets & Solutions segment mainly due to nil construction revenue recognized in the current period and lower earning days resulted from vessels disposal, vessels lay-up and lower charter rates.
During the quarter, the Group continued strengthening its long-term earnings visibility and future cash flow generation through disciplined execution of its rejuvenation and growth initiatives. Key developments included:
• Delivery of an LNG carrier for the QatarEnergy project through consortium partnership arrangements
• Securing of long-term charter contracts for five LNG carriers with Petronas LNG
• Long-term bareboat charter and operations and maintenance arrangements for an FSO project in Papua New Guinea with ExxonMobil PNG
• Extension of the FPSO Ruby II contract with Petrovietnam, and
• MHB securing an EPC contract for a marginal field development platform project.
The Group also progressed selected new energy initiatives, including the securing of a long-term charter for a liquefied carbon dioxide carrier with Northern Lights JV alongside consortium partner K Line, as well as a transition-ready vessel investment through AET’s dual-fuel ethanol-ready dynamic positioning shuttle tanker project.
LNG carrier (LNGC) long-term charter rates rose modestly in early March, driven by heightened geopolitical tensions in the Middle East. Looking ahead, LNGC rates are expected to remain elevated relative to the pre-Middle East conflict period, underpinned by robust long-term LNG demand.
Meanwhile, steam LNGC rates are expected to remain subdued as charterers continue to favor more efficient and modern tonnage. The segment continues to focus on advancing its fleet rejuvenation strategy through the delivery of modern and efficient LNGCs and securing new long-term charters. In parallel, the segment continues to implement strategic measures for vessels currently off charter, including lay-ups to optimize costs, monetization of assets to redeploy capital, and the exploration of redeployment opportunities.
In the Petroleum & Products segment, the crude tanker rates surged in March 2026 following the disruption to Strait of Hormuz before gradually moderating at elevated levels, supported by resilient tonne-mile demand arising from shifting global oil trade flows. Going forward, crude tanker rates are expected to stay above 2025 levels, depending on the duration and evolution of the disruptions in the Middle East. Against this backdrop, the Petroleum & Products segment will continue to prioritize secured and recurring income while progressively rejuvenating its fleet with dual-fuel vessels, expanding its contract portfolio and optimizing fleet deployment to maximize earnings.
Meanwhile, the offshore market outlook remains robust, supported by a strong pipeline of FPSO unit awards expected in 2026 across key regions such as South America, Africa and Asia Pacific. At the same time, project start-ups are expected to remain strong driven by persistently high oil prices amid ongoing geopolitical tensions. This positive market outlook presents growth opportunities across high potential markets for the Offshore segment to capitalize on, further reinforcing its strategic position and supporting sustainable long‑term value creation.
In the Marine & Heavy Engineering segment, the operating environment is expected to remain volatile, shaped by ongoing geopolitical tensions that continue to create trade and economic uncertainties. Despite these challenges, growing demand for offshore floater conversions and LNGC repairs is expected to create opportunities for the segment.
Against this backdrop, the Heavy Engineering sub-segment will continue to prioritize project execution excellence and strengthen its order book across conventional and new energy projects, while remaining vigilant in addressing operational challenges. Concurrently, the Marine sub-segment is expected to deliver steady performance, supported by continued demand for repair, maintenance and conversion works, as well as strong project management capabilities and enhanced operational efficiency and project delivery.
Zahid Osman, MISC President and Group CEO said, “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. We continue to execute our strategic priorities with discipline through fleet modernization, portfolio optimization, securing long-term charter contracts and the pursuit of opportunities across both conventional and lower-carbon maritime solutions.
“While geopolitical developments and macroeconomic uncertainties continue to shape the operating landscape, our commitment to sustainable growth remains steadfast as we balance operational excellence today with long-term value creation. Guided by our Delivering Progress strategy, we will continue to navigate the changing landscape with agility as we strengthen the Group’s position as a trusted global maritime and energy solutions partner.”
