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MISC BERHAD — Interim / Quarterly Report 2026
May 24, 2026
71085_rns_2026-05-24_63317ab4-df54-4db6-a078-8980d31b3015.pdf
Interim / Quarterly Report
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MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
M
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Quarter Ended | Cumulative | |||
|---|---|---|---|---|
| 31 March | 3 Months Ended | |||
| 2026 RM million | 2025 RM million | 2026 RM million | 2025 RM million | |
| Revenue | 2,891.4 | 2,816.1 | 2,891.4 | 2,816.1 |
| Cost of sales | (1,806.1) | (1,831.6) | (1,806.1) | (1,831.6) |
| GROSS PROFIT | 1,085.3 | 984.5 | 1,085.3 | 984.5 |
| Other operating income | 127.6 | 302.0 | 127.6 | 302.0 |
| General and administrative expenses | (446.1) | (429.3) | (446.1) | (429.3) |
| OPERATING PROFIT | 766.8 | 857.2 | 766.8 | 857.2 |
| Impairment provisions | (56.1) | (30.8) | (56.1) | (30.8) |
| Net gain on acquisition of subsidiaries | - | 55.8 | - | 55.8 |
| Gain on disposal of ships | 155.3 | - | 155.3 | - |
| Finance costs | (113.2) | (157.7) | (113.2) | (157.7) |
| Share of profit of associates | 3.4 | 0.8 | 3.4 | 0.8 |
| Share of profit of joint ventures | 12.5 | 10.1 | 12.5 | 10.1 |
| PROFIT BEFORE TAX | 768.7 | 735.4 | 768.7 | 735.4 |
| Taxation | (17.9) | (23.8) | (17.9) | (23.8) |
| PROFIT AFTER TAX | 750.8 | 711.6 | 750.8 | 711.6 |
| PROFIT ATTRIBUTABLE TO: | ||||
| Equity holders of the Corporation | 741.4 | 705.7 | 741.4 | 705.7 |
| Non-controlling interests | 9.4 | 5.9 | 9.4 | 5.9 |
| PROFIT AFTER TAX | 750.8 | 711.6 | 750.8 | 711.6 |
| BASIC EARNINGS PER SHARE | ||||
| ATTRIBUTABLE TO EQUITY HOLDERS | ||||
| OF THE CORPORATION (SEN) | 16.6 | 15.8 | 16.6 | 15.8 |
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the
Annual Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
MIS
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Quarter Ended | Cumulative | |||
|---|---|---|---|---|
| 31 March | 3 Months Ended | |||
| 2026 RM million | 2025 RM million | 31 March 2026 RM million | 2025 RM million | |
| PROFIT AFTER TAX | 750.8 | 711.6 | 750.8 | 711.6 |
| OTHER COMPREHENSIVE INCOME/(LOSS) | ||||
| Items that may be reclassified to profit or loss in subsequent periods: | ||||
| Cash flow hedges: | ||||
| Fair value gain/(loss) | ||||
| Group | 15.0 | (210.0) | 15.0 | (210.0) |
| Joint ventures | 1.0 | (15.9) | 1.0 | (15.9) |
| Loss on currency translation * | (328.1) | (219.9) | (328.1) | (219.9) |
| Total other comprehensive loss | (312.1) | (445.8) | (312.1) | (445.8) |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 438.7 | 265.8 | 438.7 | 265.8 |
| TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO: | ||||
| Equity holders of the Corporation | 424.3 | 268.7 | 424.3 | 268.7 |
| Non-controlling interests | 14.4 | (2.9) | 14.4 | (2.9) |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 438.7 | 265.8 | 438.7 | 265.8 |
- The following USD:RM exchange rates were used in the calculation of loss on currency translation:
| 2026 | 2025 | 2024 | |
|---|---|---|---|
| As at 31 March | 4.03900 | 4.43250 | 4.73750 |
| As at 31 December | - | 4.05300 | 4.46000 |
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the
Annual Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
MSc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| | As at
31 March 2026
RM million | As at
31 December 2025
RM million |
| --- | --- | --- |
| NON CURRENT ASSETS | | |
| Ships | 17,962.1 | 18,649.1 |
| Offshore floating asset | 37.6 | 37.6 |
| Other property, plant and equipment | 2,236.0 | 2,214.3 |
| Prepaid lease payments on land and buildings | 175.0 | 176.9 |
| Finance lease receivables | 17,001.6 | 17,190.2 |
| Investments in associates | 699.7 | 663.1 |
| Investments in joint ventures | 637.1 | 605.5 |
| Other non current assets | 312.9 | 319.7 |
| Derivative assets | 212.5 | 194.6 |
| Intangible assets | 831.9 | 842.3 |
| Deferred tax assets | 104.2 | 104.0 |
| | 40,210.6 | 40,997.3 |
| CURRENT ASSETS | | |
| Inventories | 96.4 | 122.1 |
| Finance lease receivables | 1,485.0 | 1,665.7 |
| Trade and other receivables, and contract assets | 4,652.9 | 3,998.0 |
| Cash, deposits and bank balances | 7,233.7 | 6,096.4 |
| Non current assets classified as held for sale | 714.8 | 134.9 |
| | 14,182.8 | 12,017.1 |
| TOTAL ASSETS | 54,393.4 | 53,014.4 |
| EQUITY | | |
| Share capital | 8,923.3 | 8,923.3 |
| Treasury shares | (0.3) | (0.3) |
| Reserves | 4,405.3 | 4,722.4 |
| Retained profits | 20,478.5 | 20,362.0 |
| Equity attributable to equity holders of the Corporation | 33,806.8 | 34,007.4 |
| Non-controlling interests | 711.5 | 697.1 |
| TOTAL EQUITY | 34,518.3 | 34,704.5 |
| NON CURRENT LIABILITIES | | |
| Interest bearing loans and borrowings | 10,525.0 | 10,959.0 |
| Deferred income | 832.1 | 709.0 |
| Deferred tax liabilities | 2.4 | 2.1 |
| Other non current liabilities | 54.5 | 54.7 |
| Derivative liabilities | 14.5 | 22.5 |
| | 11,428.5 | 11,747.3 |
| CURRENT LIABILITIES | | |
| Interest bearing loans and borrowings | 3,277.4 | 1,921.4 |
| Trade and other payables | 5,103.9 | 4,585.3 |
| Provision for taxation | 63.9 | 54.7 |
| Derivative liabilities | 1.4 | 1.2 |
| | 8,446.6 | 6,562.6 |
| TOTAL LIABILITIES | 19,875.1 | 18,309.9 |
| TOTAL EQUITY AND LIABILITIES | 54,393.4 | 53,014.4 |
The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual
Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
MIS
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| | Cumulative
3 Months Ended | |
| --- | --- | --- |
| | 31 March 2026
RM million | 31 March 2025
RM million |
| Cash Flows from Operating Activities: | | |
| Profit before tax | 768.7 | 735.4 |
| Writeback of impairment loss on finance lease receivables,
trade and other receivables | (5.2) | (2.1) |
| Impairment loss on receivables | 1.0 | 1.2 |
| Depreciation of ships, offshore floating asset and other property,
plant and equipment | 447.1 | 492.8 |
| Amortisation of prepaid lease payments | 1.9 | 1.9 |
| Impairment provisions | 56.1 | 30.8 |
| Loss on modification of finance lease contract | 7.0 | 61.9 |
| Net gain on acquisition of subsidiaries | - | (55.8) |
| Net unrealised foreign exchange loss | 3.1 | 2.7 |
| Gain on disposal of ships | (155.3) | - |
| Interest expense | 109.2 | 146.7 |
| Finance income | (50.4) | (58.5) |
| Net fair value movement in other investments | 2.1 | 1.1 |
| Changes in fair value of hedging derivatives | 0.1 | 5.0 |
| Amortisation of intangibles | 0.3 | 0.4 |
| Amortisation of upfront fees for borrowings | 3.9 | 10.9 |
| Share of profit of associates | (3.4) | (0.8) |
| Share of profit of joint ventures | (12.5) | (10.1) |
| Amortisation of deferred income | (15.5) | (19.7) |
| Operating profit before working capital changes | 1,158.2 | 1,343.8 |
| Inventories | 14.9 | 22.8 |
| Trade and other receivables, and contract assets | (347.7) | (216.0) |
| Trade and other payables | 436.1 | (359.4) |
| Cash generated from operations | 1,261.5 | 791.2 |
| Net tax paid | (11.1) | (18.1) |
| Net cash generated from operating activities | 1,250.4 | 773.1 |
The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual
Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
MIS
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| | Cumulative
3 Months Ended | |
| --- | --- | --- |
| | 31 March 2026
RM million | 31 March 2025
RM million |
| Cash Flows from Investing Activities: | | |
| Purchase of ships, other property, plant and equipment | (810.1) | (165.8) |
| Acquisition of subsidiaries, net of cash acquired | - | (267.0) |
| Investment in associates | (54.3) | (11.7) |
| Proceeds from disposal of ships | 515.0 | - |
| Dividend received from: | | |
| Joint ventures and an associate | 15.9 | 26.7 |
| Cash acquired on acquisition of subsidiaries | - | 167.2 |
| Interest received | 44.8 | 53.2 |
| Net fixed deposit placements | (334.3) | (70.9) |
| Net cash used in investing activities | (623.0) | (268.3) |
| Cash Flows from Financing Activities: | | |
| Drawdown of interest bearing loans and borrowings | 1,392.6 | 4,766.5 |
| Repayment of interest bearing loans and borrowings | (387.3) | (3,339.7) |
| Repayment of lease liabilities | (60.2) | (28.3) |
| Dividends paid to the equity holders of the Corporation | (624.9) | (535.6) |
| Interest paid | (143.9) | (129.3) |
| Receipt of cash pledged with banks (restricted for use) | 27.5 | 58.4 |
| Net cash generated from financing activities | 203.8 | 792.0 |
| Net change in cash and cash equivalents | 831.2 | 1,296.8 |
| Cash & cash equivalents at the beginning of the year | 4,833.7 | 5,310.0 |
| Currency translation differences | (0.7) | (34.9) |
| Cash & cash equivalents at the end of the year | 5,664.2 | 6,571.9 |
| Cash pledged with banks - restricted for use and deposited with maturity more than 90 days | 1,569.5 | 1,370.6 |
| Cash, deposits and bank balances | 7,233.7 | 7,942.5 |
The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual
Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT FOR FIRST QUARTER ENDED 31 MARCH 2026
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Total equity | Attributable to equity holders of the Corporation | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity attributable to equity holders of the Corporation | Share capital* | Treasury shares | Retained profits | Other reserves, total | Other capital reserve | Capital reserve | Hedging reserve | Currency translation reserve | Non-controlling Interests | ||
| RM million | RM million | RM million | RM million | RM million | RM million | RM million | RM million | RM million | RM million | RM million | |
| 3 MONTHS ENDED 31 MARCH 2026 | |||||||||||
| At 1 January 2026 | 34,704.5 | 34,007.4 | 8,923.3 | (0.3) | 20,362.0 | 4,722.4 | 60.2 | 435.2 | 206.1 | 4,020.9 | 697.1 |
| Total comprehensive income/(loss) | 438.7 | 424.3 | - | - | 741.4 | (317.1) | - | - | 15.0 | (332.1) | 14.4 |
| Transactions with equity holders | |||||||||||
| Dividends | (624.9) | (624.9) | - | - | (624.9) | - | - | - | - | - | - |
| Total transactions with equity holders | (624.9) | (624.9) | - | - | (624.9) | - | - | - | - | - | - |
| At 31 March 2026 | 34,518.3 | 33,806.8 | 8,923.3 | (0.3) | 20,478.5 | 4,405.3 | 60.2 | 435.2 | 221.1 | 3,688.8 | 711.5 |
| 3 MONTHS ENDED 31 MARCH 2025 | |||||||||||
| At 1 January 2025 | 38,313.5 | 37,604.1 | 8,923.3 | (0.3) | 19,083.0 | 9,598.1 | 60.0 | 435.2 | 601.8 | 8,501.1 | 709.4 |
| Total comprehensive income/(loss) | 265.8 | 268.7 | - | - | 705.7 | (437.0) | - | - | (219.0) | (218.0) | (2.9) |
| Transactions with equity holders | |||||||||||
| Dividends | (535.6) | (535.6) | - | - | (535.6) | - | - | - | - | - | - |
| Total transactions with equity holders | (535.6) | (535.6) | - | - | (535.6) | - | - | - | - | - | - |
| At 31 March 2025 | 38,043.7 | 37,337.2 | 8,923.3 | (0.3) | 19,253.1 | 9,161.1 | 60.0 | 435.2 | 382.8 | 8,283.1 | 706.5 |
- Included in share capital is one preference share of RM1.
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025.
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134
A1. CORPORATE INFORMATION
MISC Berhad is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on Bursa Malaysia Securities Berhad.
These unaudited condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 22 May 2026.
A2. BASIS OF PREPARATION
These unaudited condensed consolidated interim financial statements for the period ended 31 March 2026 have been prepared in accordance with MFRS 134 Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The results for this interim period are unaudited and should be read in conjunction with the Group's audited financial statements and the accompanying notes for the year ended 31 December 2025.
The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to understand the changes in the financial position and performance of the Group since the year ended 31 December 2025.
The audited financial statements of the Group for the year ended 31 December 2025 are available upon request from the Corporation's registered office located at Level 25, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur.
The main functional currency of the Group is United States Dollar ("USD") while these interim financial statements are presented in Ringgit Malaysia ("RM").
A3. SIGNIFICANT ACCOUNTING POLICIES
The financial information presented herein has been prepared in accordance with the accounting policies to be used in preparing the Group's annual financial statements for the year ending 31 December 2026 under the Malaysian Financial Reporting Standards ("MFRS") framework. These policies do not differ significantly from those used in the Group's audited financial statements for the year ended 31 December 2025 except as disclosed below.
As at 1 January 2026, the Group and the Corporation have adopted the following MFRS and Amendments to MFRSs (collectively referred to as "pronouncements") that have been issued by the Malaysian Accounting Standards Board ("MASB"):
Effective for annual periods beginning on or after 1 January 2026:
- Amendments to MFRS 9: Financial Instruments and MFRS 7: Financial Instruments Disclosures (Classification and Measurement of Financial Instruments)
- Annual Improvements to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards, MFRS 7: Financial Instruments: Disclosures, MFRS 9: Financial Instruments, MFRS10: Consolidated Financial Statements and MFRS 107: Statement of Cash Flows (Annual Improvements to MFRS Accounting Standards – Volume 11)
The adoption of the above-mentioned pronouncements do not have any material impact to the financial statements of the Group and the Corporation.
Page 7 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A4. EXCEPTIONAL ITEMS
There were no exceptional items during the current financial period other than as disclosed in the condensed consolidated interim financial statements.
A5. MATERIAL CHANGES IN ACCOUNTING ESTIMATES
There were no material changes in estimates of the amounts reported in the most recent audited financial statements of the Group for the year ended 31 December 2025 that may have a material effect in current quarter results.
A6. AUDIT REPORT OF PRECEDING ANNUAL FINANCIAL STATEMENTS
The audited financial statements of the Group for the year ended 31 December 2025 were not subjected to any audit qualification.
A7. CHANGES IN COMPOSITION OF THE GROUP
a) The following indirect wholly owned subsidiaries of the Corporation ("Companies"), had convened their final meetings to conclude their member's voluntary winding-up ("Final Meetings"). The Returns by Liquidator relating to the Final Meetings ("Returns") were lodged with the Companies Commission of Malaysia and the Official Receiver, following which the Companies were dissolved on the respective dates below:
| Company Name | Date of Final Meetings & Lodgment Date of the Returns | Date of Dissolution |
|---|---|---|
| a. Puteri Firus Sdn. Bhd. | 29 December 2025 | 29 March 2026 |
| b. Puteri Delima Sdn. Bhd. | 31 December 2025 | 31 March 2026 |
| c. Puteri Intan Sdn. Bhd. | 31 December 2025 | 31 March 2026 |
| d. Puteri Nilam Sdn. Bhd. | 31 December 2025 | 31 March 2026 |
b) On 24 February 2026, the Corporation incorporated two (2) new subsidiaries under the Singapore Companies Act 1967, namely MG Ventures One Pte. Ltd. ("MGV1") and MG Ventures Two Pte. Ltd. ("MGV2"), for the purpose of owning and operating Very Large Ethane Carriers ("VLECs"). MGV1 and MGV2 are wholly-owned subsidiaries of MISC Gas Tankers Two (L) Pte. Ltd., an indirect wholly-owned subsidiary of the Corporation.
c) On 31 March 2026, the Corporation incorporated a new subsidiary under the Brunei Companies Act, Chapter 39, namely MISC Kelidang (B) Sdn Bhd ("MISC Kelidang"), for the purpose of owning and operating a floating production unit. MISC Kelidang is 99.99% owned by MISC OBU One (L) Pte. Ltd. and 0.01% owned by MISC OBU Holdings (L) Pte. Ltd., both of which are indirect wholly-owned subsidiaries of the Corporation.
A8. DISCONTINUED OPERATIONS
There were no discontinued operations in the Group during the financial period under review.
A9. SEASONALITY OF OPERATIONS
The businesses of the Group are subject to market fluctuations.
Page 8 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A10. REVENUE
The Group's revenue by segments are as follows:
| Gas Assets & Solutions | Petroleum & Products | Offshore | Marine & Heavy Engineering | Others, Eliminations and Adjustments | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RM million | RM million | RM million | RM million | RM million | RM million | |||||||
| Quarter/Cumulative Period Ended 31 March | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Revenue from contracts with customers | 3.5 | 48.8 | 848.2 | 610.2 | 79.4 | 212.5 | 524.0 | 453.1 | 35.3 | (36.0) | 1,490.4 | 1,288.6 |
| Revenue from charter * | 390.9 | 587.4 | 667.1 | 642.2 | 343.0 | 297.9 | - | - | - | - | 1,401.0 | 1,527.5 |
| 394.4 | 636.2 | 1,515.3 | 1,252.4 | 422.4 | 510.4 | 524.0 | 453.1 | 35.3 | (36.0) | 2,891.4 | 2,816.1 |
- Revenue from charter consists of charter income and finance income on lease receivables.
A11. SEGMENT REPORT
The operating segments of the Group are as follows:
- Gas Assets & Solutions - provision of Liquefied Natural Gas ("LNG") carrier services and non-conventional gas asset solutions;
- Petroleum & Products - provision of crude and petroleum tanker services;
- Offshore - own, lease, operation and maintenance of offshore, floating, production and offloading terminals;
- Marine & Heavy Engineering - marine repair, marine conversion and engineering and construction works; and
- Others - integrated marine services, port & terminal services, maritime education & training and other diversified businesses.
Revenue and operating results by segments are as follows:
| Gas Assets & Solutions | Petroleum & Products | Offshore | Marine & Heavy Engineering | Others, Eliminations and Adjustments * | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RM million | RM million | RM million | RM million | RM million | RM million | |||||||
| Quarter/Cumulative Period Ended 31 March | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Revenue | ||||||||||||
| External sales | 390.9 | 636.2 | 1,514.3 | 1,252.4 | 420.5 | 498.7 | 513.3 | 378.5 | 52.4 | 50.3 | 2,891.4 | 2,816.1 |
| Inter-segment | 3.5 | - | 1.0 | - | 1.9 | 11.7 | 10.7 | 74.6 | (17.1) | (86.3) | - | - |
| 394.4 | 636.2 | 1,515.3 | 1,252.4 | 422.4 | 510.4 | 524.0 | 453.1 | 35.3 | (36.0) | 2,891.4 | 2,816.1 | |
| Operating profit/(loss) | 214.2 | 303.8 | 433.0 | 370.1 | 195.2 | 261.1 | 18.2 | 15.8 | (93.8) | (93.6) | 766.8 | 857.2 |
- Comprises other diversified businesses, net foreign exchange differences, interest income, dividend income from quoted investment, corporate expenses, eliminations and adjustments.
Page 9 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A12. PROFIT FOR THE PERIOD
Included in the profit for the period are the following items:
| Quarter Ended | Cumulative | |||
|---|---|---|---|---|
| 31 March | 3 Months Ended | |||
| 2026 | 2025 | 2026 | 2025 | |
| RM million | RM million | RM million | RM million | |
| Finance income | 50.4 | 58.5 | 50.4 | 58.5 |
| Other income | 211.8 | 227.2 | 211.8 | 227.2 |
| Interest expense | (109.2) | (146.7) | (109.2) | (146.7) |
| Amortisation of upfront fees for borrowings | (3.9) | (10.9) | (3.9) | (10.9) |
| Depreciation of ships, offshore floating asset and other property, plant and equipment | (447.1) | (492.8) | (447.1) | (492.8) |
| Amortisation of prepaid lease payments | (1.9) | (1.9) | (1.9) | (1.9) |
| Amortisation of intangibles | (0.3) | (0.4) | (0.3) | (0.4) |
| Gain on disposal of ships | 155.3 | - | 155.3 | - |
| Impairment provisions | (56.1) | (30.8) | (56.1) | (30.8) |
| Impairment loss on receivables | (1.0) | (1.2) | (1.0) | (1.2) |
| Net fair value movement in other investments | (2.1) | (1.1) | (2.1) | (1.1) |
| Changes in fair value of hedging derivatives | (0.1) | (5.0) | (0.1) | (5.0) |
| Loss on modification of finance lease contract | (7.0) | (61.9) | (7.0) | (61.9) |
| Net gain on acquisition of subsidiaries | - | 55.8 | - | 55.8 |
| Write back of impairment loss on finance lease receivables, trade and other receivables | 5.2 | 2.1 | 5.2 | 2.1 |
| Net realised foreign exchange gain/(loss) | 9.2 | (4.0) | 9.2 | (4.0) |
| Net unrealised foreign exchange loss | (3.1) | (2.7) | (3.1) | (2.7) |
A13. SHIPS, OFFSHORE FLOATING ASSET AND OTHER PROPERTY, PLANT AND EQUIPMENT
Included in ships, offshore floating asset and other property, plant and equipment are construction work-in-progress, mainly for the construction of ships totalling RM3,201.3 million (31 December 2025: RM2,484.5 million) and right-of-use assets amounting to RM511.2 million (31 December 2025: RM562.2 million).
The volatility of charter hire rates, expired charter contracts or contracts approaching expiry dates were identified as indications that the carrying amount of certain ships may be impaired. The Group has performed a review of the recoverable amount of the ships at the end of the quarter. The recoverable amount was based on the higher of fair value less costs of disposal or value-in-use, and determined at the cash generating unit ("CGU") level of each asset.
The review led to the recognition of net impairment losses of ships amounting to RM56.1 million in the current financial year as the recoverable amount of the ships was lower than their carrying value.
Page 10 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A14. INTANGIBLE ASSETS
| | Goodwill
RM million | Other Intangible
Assets
RM million | Total
RM million |
| --- | --- | --- | --- |
| Cost | | | |
| At 1 January 2025 | 1,061.3 | 427.2 | 1,488.5 |
| Additions | - | 13.8 | 13.8 |
| Currency translation differences | (90.3) | - | (90.3) |
| At 31 December 2025 | 971.0 | 441.0 | 1,412.0 |
| Additions | - | | - |
| Currency translation differences | (1.6) | (8.5) | (10.1) |
| At 31 March 2026 | 969.4 | 432.5 | 1,401.9 |
| Accumulated amortisation and impairment | | | |
| At 1 January 2025 | 162.5 | 405.4 | 567.9 |
| Amortisation | - | 1.8 | 1.8 |
| At 31 December 2025 | 162.5 | 407.2 | 569.7 |
| Amortisation | - | 0.3 | 0.3 |
| At 31 March 2026 | 162.5 | 407.5 | 570.0 |
| Net carrying amount | | | |
| At 1 January 2025 | 898.8 | 21.8 | 920.6 |
| At 31 December 2025 | 808.5 | 33.8 | 842.3 |
| At 31 March 2026 | 806.9 | 25.0 | 831.9 |
Goodwill is tested for impairment annually, or when circumstances indicate that the carrying value may be impaired. The Group's goodwill impairment test is a comparison of the goodwill's carrying value against its recoverable amount. The recoverable amounts are based on value-in-use for cash generating units ("CGU"), calculated using cash flow projections. The key assumptions used to determine the value-in-use of CGUs were disclosed in the annual consolidated financial statements for the year ended 31 December 2025.
The other intangible assets relate to the fair value of long-term customer contracts from acquisition of a subsidiary at the date of acquisition, which is amortised over the remaining contract periods.
Page 11 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A15. FAIR VALUE HIERARCHY
The Group uses the following hierarchy to determine the fair value of all financial instruments carried at fair value:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets and liabilities
Level 2 - Inputs that are based on observable market data, either directly or indirectly
Level 3 - Inputs that are not based on observable market data
As at the reporting date, the Group held the following financial assets and liabilities that are measured at fair value:
| | Level 1
RM million | Level 2
RM million | Level 3
RM million | Total
RM million |
| --- | --- | --- | --- | --- |
| At 31 March 2026 | | | | |
| Financial Assets | | | | |
| Quoted investments | 55.2 | - | - | 55.2 |
| Unquoted investments | - | - | 53.6 | 53.6 |
| Interest rate swaps designated as hedging instruments | - | 212.5 | - | 212.5 |
| | 55.2 | 212.5 | 53.6 | 321.3 |
| Non-financial assets: | | | | |
| Non-current assets classified as held for sale | - | - | 714.8 | 714.8 |
| Financial Liabilities | | | | |
| Forward currency contracts | - | (1.4) | - | (1.4) |
| Interest rate swaps designated as hedging instruments | - | (14.5) | - | (14.5) |
| | - | (15.9) | - | (15.9) |
| | Level 1
RM million | Level 2
RM million | Level 3
RM million | Total
RM million |
| At 31 December 2025 | | | | |
| Financial Assets | | | | |
| Quoted investments | 57.3 | - | - | 57.3 |
| Unquoted investments | - | - | 50.5 | 50.5 |
| Interest rate swaps designated as hedging instruments | - | 194.6 | - | 194.6 |
| | 57.3 | 194.6 | 50.5 | 302.4 |
| Non-financial assets: | | | | |
| Non-current assets classified as held for sale | - | - | 134.9 | 134.9 |
| Financial Liabilities | | | | |
| Forward currency contracts | - | (1.2) | - | (1.2) |
| Interest rate swaps designated as hedging instruments | - | (22.5) | - | (22.5) |
| | - | (23.7) | - | (23.7) |
No transfers between any levels of the fair value hierarchy took place during the current and prior year. There were also no changes in the purpose of any financial instruments that subsequently caused a change in classification of those instruments.
Page 12 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A16. ISSUANCE OR REPAYMENT OF DEBT AND EQUITY SECURITIES
There was no issuance or repayment of debt and equity securities made by the Group during the period ended 31 March 2026.
A17. INTEREST BEARING LOANS AND BORROWINGS
i) The tenure of Group borrowings, classified as short and long term as well as secured and unsecured, are as follows:
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| Short Term Borrowings | | |
| Secured | 1,400.5 | 1,418.4 |
| Unsecured | 1,712.4 | 313.7 |
| Lease liabilities | 164.5 | 189.3 |
| | 3,277.4 | 1,921.4 |
| Long Term Borrowings | | |
| Secured | 7,651.6 | 8,052.2 |
| Unsecured | 2,428.1 | 2,429.3 |
| Lease liabilities | 445.3 | 477.5 |
| | 10,525.0 | 10,959.0 |
| Total | 13,802.4 | 12,880.4 |
ii) Foreign borrowings in United States Dollar equivalent as at 31 March 2026 and 31 December 2025 are as follows:
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| United States Dollar Borrowings | 12,991.2 | 12,283.2 |
Page 13 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued)
A18. DIVIDENDS PAID
The Corporation paid the following dividends in the period ended 31 March 2026 and year ended 31 December 2025:
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| In respect of the financial year ended 31 December 2024: | | |
| Fourth tax exempt dividend of 12.0 sen per share paid on 20 March 2025 | - | 535.6 |
| In respect of the financial year ended 31 December 2025: | | |
| First tax exempt dividend of 8.0 sen per share paid on 26 June 2025 | - | 357.1 |
| Second tax exempt dividend of 8.0 sen per share paid on 25 September 2025 | - | 357.1 |
| Third tax exempt dividend of 8.0 sen per share paid on 18 December 2025 | - | 357.1 |
| Fourth tax exempt dividend of 14.0 sen per share paid on 26 March 2026 | 624.9 | - |
A19. RELATED PARTY TRANSACTIONS
There were no significant transactions entered with related parties for the period ended 31 March 2026 compared to the related party transactions disclosed in the audited consolidated financial statements of the Group for the year ended 31 December 2025.
A20. CAPITAL COMMITMENTS
The Group’s outstanding commitments in respect of capital expenditure not provided for in the financial statements as at 31 March 2026 and 31 December 2025 are as follows:
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| Approved and contracted for: | | |
| Group | 12,326.5 | 7,858.9 |
| | 12,326.5 | 7,858.9 |
A21. CONTINGENT LIABILITIES
There were no material contingent liabilities as at 31 March 2026.
A22. SUBSEQUENT MATERIAL EVENTS
There were no material events subsequent to the period end date.
Page 14 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES
B1. REVIEW OF GROUP PERFORMANCE
| Quarter Ended | Cumulative | |||
|---|---|---|---|---|
| 31 March | 3 Months Ended | |||
| 2026 RM million | 2025 RM million | 2026 RM million | 2025 RM million | |
| Revenue | ||||
| Gas Assets & Solutions | 394.4 | 636.2 | 394.4 | 636.2 |
| Petroleum & Products | 1,515.3 | 1,252.4 | 1,515.3 | 1,252.4 |
| Offshore | 422.4 | 510.4 | 422.4 | 510.4 |
| Marine & Heavy Engineering | 524.0 | 453.1 | 524.0 | 453.1 |
| Others, Eliminations and Adjustments | 35.3 | (36.0) | 35.3 | (36.0) |
| Total Revenue | 2,891.4 | 2,816.1 | 2,891.4 | 2,816.1 |
| Operating Profit/(Loss) | ||||
| Gas Assets & Solutions | 214.2 | 303.8 | 214.2 | 303.8 |
| Petroleum & Products | 433.0 | 370.1 | 433.0 | 370.1 |
| Offshore | 195.2 | 261.1 | 195.2 | 261.1 |
| Marine & Heavy Engineering | 18.2 | 15.8 | 18.2 | 15.8 |
| Others, Eliminations and Adjustments | (93.8) | (93.6) | (93.8) | (93.6) |
| Total Operating Profit | 766.8 | 857.2 | 766.8 | 857.2 |
| Impairment provisions | (56.1) | (30.8) | (56.1) | (30.8) |
| Net gain on acquisition of subsidiaries | - | 55.8 | - | 55.8 |
| Gain on disposal of ships | 155.3 | - | 155.3 | - |
| Finance costs | (113.2) | (157.7) | (113.2) | (157.7) |
| Share of profit of associates | 3.4 | 0.8 | 3.4 | 0.8 |
| Share of profit of joint ventures | 12.5 | 10.1 | 12.5 | 10.1 |
| Profit Before Tax | 768.7 | 735.4 | 768.7 | 735.4 |
Page 15 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
Current quarter’s performance against the quarter ended 31 March 2025
Group revenue of RM2,891.4 million was RM75.3 million or 2.7% higher than the quarter ended 31 March 2025 (“corresponding quarter”) of RM2,816.1 million, while Group operating profit of RM766.8 million was RM90.4 million or 10.5% lower than the corresponding quarter’s profit of RM857.2 million.
The Group’s reported performance was also affected by foreign exchange movements during the quarter, in line with the strengthening of Ringgit Malaysia against the United States Dollar.
The variances in Group performance by segments are further explained below.
Gas Assets & Solutions
Revenue of RM394.4 million was RM241.8 million or 38.0% lower than the corresponding quarter’s revenue of RM636.2 million due to no construction revenue recognize in the current quarter and lower earning days resulted from vessels disposal, vessels lay-up and lower charter rates.
Operating profit of RM214.2 million was RM89.6 million or 29.5% lower than the corresponding quarter’s profit of RM303.8 million due to lower revenue as explained above offset against lower vessel operating costs and no construction cost recognize in the current quarter.
Petroleum & Product Shipping
Revenue of RM1,515.3 million was RM262.9 million or 21.0% higher than the corresponding quarter’s revenue of RM1,252.4 million, primarily driven by higher freight rates and earning days achieved, partially offset against foreign exchange impact from the strengthening Ringgit Malaysia (“RM”) against United States Dollar (“USD”) in the current quarter.
Operating profit of RM433.0 million was RM62.9 million or 17.0% higher than the corresponding quarter’s profit of RM370.1 million in tandem with higher revenue, partially offset by strengthening of RM against USD as mentioned above.
Offshore Business
Revenue of RM422.4 million was RM88.0 million (17.2%) lower than the same quarter last year, mainly due to higher revenue recognised in the corresponding quarter relating to mobilization activities of a Floating Production, Storage and Offshore (FPSO) for operational readiness, and the effect of strengthening RM against the USD in the current quarter.
Operating profit of RM195.2 million was RM65.9 million or 25.2% lower than the corresponding quarter’s profit of RM261.1 million following operational shutdown of an FPSO.
Marine & Heavy Engineering
Revenue of RM524.0 million was RM70.9 million or 15.6% higher than the corresponding quarter’s revenue of RM453.1 million primarily driven by higher revenue contribution from the Heavy Engineering segment from the ongoing projects advancing into higher construction phases partially offset by lower revenue from post sail-away projects.
Operating profit of RM18.2 million was RM2.4 million or 15.2% higher than the corresponding quarter’s profit of RM15.8 million. The segment’s operating profit in the current quarter was comparable to the corresponding quarter.
Others, Eliminations and Adjustments
Others segment’s operating loss was comparable against corresponding quarter’s loss.
Page 16 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B2. COMPARISON WITH PRECEDING QUARTER'S RESULTS
| GROUP | Quarter Ended 31 March 2026
RM million | Quarter Ended 31 December 2025
RM million |
| --- | --- | --- |
| Revenue | 2,891.4 | 2,811.5 |
| Operating Profit | 766.8 | 507.6 |
| Impairment provisions | (56.1) | (356.4) |
| Gain on disposal of ships | 155.3 | 2.1 |
| Finance costs | (113.2) | (97.5) |
| Share of profit/(loss) of associates | 3.4 | (4.3) |
| Share of profit/(loss) of joint ventures | 12.5 | (5.3) |
| Profit Before Tax | 768.7 | 46.2 |
Group revenue of RM2,891.4 million was RM79.9 million or 2.8% higher than the preceding quarter’s revenue of RM2,811.5 million contributed by higher revenue from Petroleum segment from higher freight rates and earning days achieved.
Group operating profit of RM766.8 million was RM259.2 million or 51.1% higher than the preceding quarter’s profit of RM507.6 million mainly due to lower vessel operating cost and lower depreciation in Gas Assets & Solutions segment.
Profit before tax of RM768.7 million was significantly higher than the preceding quarter’s profit of RM46.2 million, primarily attributable to higher operating profit as mentioned above, lower impairment provisions recognised in the current quarter, as well as higher gain on disposal of ships.
Page 17 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B3. REVIEW OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| As at 31 March 2026 RM million | As at 31 December 2025 RM million | |
|---|---|---|
| Total assets | 54,393.4 | 53,014.4 |
| Total equity attributable to equity holders of the Corporation | 33,806.8 | 34,007.4 |
| Total liabilities | 19,875.1 | 18,309.9 |
The Group's total assets at RM54,393.4 million was higher by RM1,379.0 million or 2.6% mainly due to higher cash, deposits and bank balances.
Total equity attributable to shareholders of the Company decreased by RM200.6 million or 0.6% mainly attributed from unfavourable movement of currency translation reserve following strengthening of RM against USD.
Total liabilities at RM19,875.1 million was higher by RM1,565.2 million or 8.5% mainly from increase in interest bearing loans and borrowings from drawdown of revolving credit facilities.
B4. REVIEW OF CONSOLIDATED STATEMENT OF CASH FLOWS
| Cumulative 3 Months Ended | ||
|---|---|---|
| 31 March 2026 RM million | 31 March 2025 RM million | |
| Net cash generated from operating activities | 1,250.4 | 773.1 |
| Net cash used in investing activities | (623.0) | (268.3) |
| Net cash generated from financing activities | 203.8 | 792.0 |
| Net change in cash and cash equivalents | 831.2 | 1,296.8 |
The Group's net cash generated from operating activities of RM1,250.4 million was higher by 61.7% or RM477.3 million compared to RM773.1 million in the corresponding period, mainly due to higher revenue and profitability from Petroleum segment.
The Group's net cash used in investing activities of RM623.0 million was higher by 132.2% or RM354.7 million compared to RM268.3 million in the corresponding period mainly due to higher payments on capital expenditure for ships, property, plant and equipment in the current period.
The Group's net cash generated from financing activities of RM203.8 million was lower by 74.3% or RM588.2 million compared to RM792.0 million in the corresponding period mainly due to lower net drawdown of interest-bearing loans and borrowings.
Page 18 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B5. GROUP CURRENT YEAR PROSPECTS
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 favour 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 optimise costs, monetisation 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, our Petroleum & Products segment will continue to prioritise secured and recurring income while progressively rejuvenating its fleet with dual-fuel vessels, expanding its contract portfolio and optimising fleet deployment to maximise earnings.
Meanwhile, the offshore market outlook remains robust, supported by a strong pipeline of Floating Production Storage and Offloading (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 capitalise 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 prioritise 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.
B6. PROFIT FORECAST AND PROFIT GUARANTEE
The Group did not provide any profit forecast or profit guarantee in any public document.
Page 19 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B7. TAXATION
| | Quarter Ended
31 March 2026
RM million |
| --- | --- |
| Taxation for the period comprises the following charge: | |
| Income tax charge | |
| - current period | 23.5 |
| - prior year | (3.1) |
| Deferred taxation | (2.5) |
| | 17.9 |
Section 54A of the Malaysian Income Tax Act, 1967 was amended effective from Year of Assessment ("YA") 2012, in which the tax exemption on shipping profits was reduced from 100% to 70%. The implementation of the amended Section 54A, however, has previously been deferred up to YA 2023 via several gazette orders issued by the Ministry of Finance ("MOF").
On 5 July 2024, MOF issued another Gazette Order (i.e. Income Tax (Exemption for Malaysian Ship) Order 2024 (P.U. (A) 184) granting a further extension of the 100% shipping tax exemption from YA 2024 to YA 2026. The exemption is granted subject to the Malaysian shipping companies comply with the minimum substance requirements in terms of annual operating expenditure and minimum number of full-time Malaysian employees for each Malaysian ship for both shore employees and ship personnel.
Based on the latest Gazette Order, the Group would be able to continue to enjoy the 100% shipping tax exemption up to YA 2026 on the basis that the substance requirements as per Gazette Order are duly met.
The taxation charge in the accounts is attributable to tax in respect of another jurisdiction and other activities of the Group.
B8. STATUS OF CORPORATE PROPOSALS ANNOUNCED BUT NOT COMPLETED
There were no outstanding corporate proposals submitted by the Group for the quarter ended 31 March 2026.
Page 20 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B9. CHANGES IN MATERIAL LITIGATION
i) Gumusut-Kakap Semi-Floating Production System (L) Limited ("GKL") and Sabah Shell Petroleum Limited ("SSPC")
We refer to previous announcements made by MISC Berhad ("MISC or the Company") in respect of the Arbitration Proceedings commenced by the Company's wholly-owned subsidiary, Gumusut-Kakap Semi-Floating Production System (L) Limited ("GKL") against Sabah Shell Petroleum Company Limited ("SSPC"), in particular to the announcement on 10 April 2020 regarding the award issued by the Arbitral Tribunal, on 30 December 2022 regarding the decision of the High Court and on 5 December 2025 regarding the decision of the Court of Appeal.
Arbitral Award
As announced on 10 April 2020, the Arbitral Tribunal issued its Award on 8 April 2020 ("Award") which found, among others, as follows:
(1) That GKL’s claim in relation to the achievement of Handover Completion under the Contract was rejected and the Arbitral Tribunal decided that Handover Completion did not occur prior to 11 October 2014;
(2) In relation to GKL’s claims for Variation Works, GKL was awarded:
a. USD222.1 million,
b. That an amount of USD88.8 million is deducted from USD222.1 million being manpower costs incurred by way of the Variation Works for rectification of defects (which the Tribunal held GKL to be liable for);
c. That the remainder sum of USD133.3 million is converted to an Additional Lease Rate and represents a reduction from the Additional Lease Rate awarded by the Adjudication Awards. The new Additional Lease Rate is payable from the date of the Award. The base rate is unaffected by the Award and will continue for the Fixed Term.
(3) SSPC was awarded the following sums:
a. USD236.4 million for defects rectification work (inclusive of USD15.0 million for Liquidated Damages);
b. USD88.3 million as a refund for overpayment of the Additional Lease Rate originally awarded in the Adjudication Proceedings for the period of April 2014 to January 2020 due to the reduction of the Additional Lease Rate as set out in Item 2(c) above;
c. Applicable interest up to the date of the Award;
d. Costs of USD12.7 million;
e. Interest at 6.65% on the sums awarded from the date of the Award until payment.
(4) SSPC is entitled to set-off the above claims against moneys owed by SSPC to GKL under the Contract, including but not limited to the lease rate.
(5) Any GST payable pursuant to the Goods and Services Tax Act 2014 to be accounted by the parties.
Page 21 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
Proceedings Post the Award
Setting Aside OS at the High Court
On 7 July 2020, GKL filed an Originating Summons to set aside parts of the Arbitral Award dated 8 April 2020 ("Setting Aside OS").
GKL’s Setting Aside OS was heard on 20 and 25 October 2021, 13 January 2022, 16 and 17 February 2022, 4 April 2022, 10 August 2022 and 23 September 2022. As announced on 30 December 2022, the High Court dismissed GKL’s Originating Summons to set aside parts of the Arbitral Award on 29 December 2022 with costs.
Setting Aside Appeal at the Court of Appeal
GKL filed notices of appeal to the Court of Appeal on 19 January 2023. After several postponements, the hearing proceeded on 20 and 21 August 2025.
On 5 December 2025 the Court of Appeal allowed GKL’s appeals in part. In particular:
(a) The Award is severed and varied to the extent that GKL is only liable to SSPC for the aggregate principal sum of USD200 million.
(b) The amount of pre-Award and post-Award interest shall be premised on the total liability of USD200 million.
(c) The High Court’s decision dated 29 December 2022 is varied to the extent set out in paragraph (a) above.
(d) Costs for both appeals in the sum of RM150,000 to be paid by SSPC to GKL.
("CA Order")
Stay of Execution of the CA Order
The Court of Appeal granted an ad interim stay of the CA Order pending the disposal of SSPC’s formal application for a stay of the CA Order ("SSPC’s Stay Application"). SSPC’s Stay Application was initially scheduled to be heard on 17 March 2026. However, the hearing was adjourned for parties to attempt to come to an agreement. SSPC’s Stay Application has been scheduled for hearing on 27 July 2026 in parallel with parties’ efforts to come to an agreement.
Setting Aside Appeal – Leave to Appeal to the Federal Court
On 29 December 2025, SSPC filed Notices of Motion for leave to appeal against part of the CA Order. On 5 January 2026, based on advice received that GKL has grounds to appeal, GKL filed Notices of Motion for leave to appeal against part of the CA Order. At the case management on 29 January 2026, both GKL and SSPC’s Notices of Motion for leave to appeal to the Federal Court were fixed for hearing on 25 May 2026. At a case management on 16 April 2026, the Federal Court rescheduled the hearing date to 28 July 2026 due to the Federal Court’s case load.
ii) Malaysia Offshore Mobile Production (Labuan) Ltd (“MOMPL”) and PCPP Operating Company Sdn Bhd (“PCPP”)
Malaysia Offshore Mobile Production (Labuan) Ltd (“MOMPL”), MISC Berhad’s wholly owned subsidiary, and PCPP Operating Company Sdn Bhd (“PCPP”) are parties to an Agreement for the Leasing, Operation and Maintenance of Two (2) Plain Mobile Offshore Production Unit Facilities for D30 and Dana Fields Development Project dated 28 November 2008 (“the Contract”).
Page 22 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
PCPP is a joint operating company with shareholders comprising PETRONAS Carigali Sdn Bhd (40%) ("PCSB"), PT Pertamina Hulu Energi (30%) ("PPHE") and PetroVietnam Exploration Production Corporation Ltd (30%) ("PVEP").
A dispute has arisen between the parties in relation to the Contract and there are substantial sums due and owing to MOMPL. Attempts to resolve the matter by means of a commercial settlement agreement failed to materialise and MOMPL was constrained to proceed with legal proceedings against PCPP to seek to recover the sums outstanding to MOMPL for the lease rates, payment for completed variation works, early termination fees, reimbursement of demobilisation costs and associated costs under the Contract totalling to approximately USD99.8 million and service rates totalling approximately RM22.6 million. In this respect, the following actions have been filed:
Adjudication
- Adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 ("CIPAA") was first commenced to recover MOMPL's claim for the completed variation works amounting to approximately USD9.9 million. On 9 January 2019, MOMPL was awarded its entire claim of USD9.9 million plus interest and costs.
- The second adjudication proceedings under CIPAA was commenced to recover the disputed demobilisation costs amounting to approximately USD4.8 million. On 7 October 2019, MOMPL received the second Adjudication decision dated 26 July 2019 where MOMPL was awarded its entire claim of USD4.8 million plus interest and costs.
- The Federal Court ("FC") had on 16 October 2019 made a ruling that the CIPAA, which provides the basis upon which the Adjudication Proceedings were commenced, only applies prospectively to construction contracts entered into after the date CIPAA became effective i.e. 15 April 2014. The MOMPL lease agreement is dated 28 November 2008 and as such, falls outside the purview of CIPAA.
- In view of the FC decision, MOMPL has stayed its hand on moving for the enforcement of the Adjudication decisions and will focus on the Arbitration Proceedings in order to recover the monies owing by PCPP.
- As far as MOMPL is aware, there is no pending application to set aside the said Adjudication decisions.
Arbitration
- The first arbitration proceedings seek to claim for part of the outstanding sums amounting to approximately USD18.8 million and RM17.9 million. MOMPL's Statement of Claim was filed on 21 December 2016.
- MOMPL has re-filed the Notice of Arbitration for the second arbitration proceedings for part of the outstanding sums amounting to approximately USD81.0 million and RM4.7 million. PCPP has responded to the Notice of Arbitration on 15 July 2020.
- The arbitral tribunal for both arbitration proceedings have now been constituted respectively, and parties are amid negotiating and finalising the terms of appointment. However, given the development in the filing of the Winding-up Proceedings, MOMPL has written to the arbitral tribunal for both the first and second arbitrations to request for proceedings to be kept in abeyance until the Winding-up Proceedings is disposed of by the High Court.
Proceedings in Court
Originating Summons against PCPP for Early Termination Fees and Demobilisation Costs
- On 7 August 2018 an Originating Summons was filed in the High Court to recover the undisputed portion of the early termination fees and demobilisation costs amounting to approximately USD42.3 million.
Page 23 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
a. On 30 May 2019, the High Court, allowed PCPP’s application to stay the Originating Summons pending the disposal of the arbitration proceedings. MOMPL filed an appeal to the Court of Appeal (“CA”) against this decision which was heard on 12 April 2021. The CA set aside the stay application granted by the High Court and instead imposed a conditional stay on PCPP wherein PCPP is required to deposit a sum of USD7.8 million into a joint account held by both parties’ solicitors within 30 days, failing which MOMPL will be able to proceed with the full hearing in the High Court action against PCPP. PCPP failed to make any such deposit and therefore the Originating Summons was reinstated in the High Court at MOMPL’s request.
b. The matter was heard on both 7 October 2021 and 26 October 2021, the High Court decided the matter in favour of MOMPL. MOMPL has now been awarded the full sum claimed amounting to USD42.3 million together with interest and costs which is to be paid by PCPP. PCPP did not file any appeal against the High Court’s decision however PCPP failed to pay the sum awarded to MOMPL. Due to PCPP’s failure to pay the sum awarded, MOMPL proceeded to issue a Statutory Notice pursuant to Sections 465 and 466 of the Companies Act 2016 against PCPP on 14 December 2021.
Writ Action for Declaration against the Shareholders of PCPP
- A writ action in the High Court was also filed on 13 August 2018 against PCSB, PPHE and PVEP (being the shareholders of PCPP) seeking for a declaration that the shareholders be liable for the amounts due and owing by PCPP to MOMPL under the Contract. PCSB and PCPP filed applications in the High Court to strike out (“PCSB’s Striking Out Application”) and stay the proceedings pending the disposal of the arbitration proceedings (“PCPP’s Stay Application”) which were allowed on 26 October 2018 and 11 December 2018 respectively. MOMPL appealed against both decisions to the Court of Appeal.
a. MOMPL’s appeal against PCSB’s Striking Out Application by the High Court was dismissed by the Court of Appeal on 26 September 2019. MOMPL has filed leave to appeal against the Court of Appeal’s decision to uphold the High Court’s decision to strike out the proceedings against PCSB to the Federal Court. On 18 August 2020, the Federal Court dismissed MOMPL’s appeal.
b. MOMPL’s appeal against PCPP’s Stay Application by the High Court was heard by the Court of Appeal on 19 June 2020. The Court of Appeal has set aside the stay against the shareholders i.e. PCSB, PPHE and PVEP, whilst the stay against PCPP is affirmed. Pursuant to this decision, MOMPL has proceeded to serve the cause papers out of jurisdiction on PPHE and PVEP. PVEP failed to respond to MOMPL’s claim and therefore MOMPL applied for a summary judgment against PVEP. PPHE filed an application in the High Court of Malaysia to challenge the service of the cause papers in Indonesia which was heard on 11 August 2021. On 24 September 2021, the High Court allowed PPHE’s application. MOMPL has elected to await the outcome of the Winding-up Proceedings against PCPP and will consider whether to file a fresh claim against PCPP’s shareholders thereafter.
Winding Up of PCPP
- MOMPL issued a Statutory Notice pursuant to Sections 465 and 466 of the Companies Act 2016 against PCPP on 14 December 2021 (“Statutory Notice”). PCPP failed to comply with the Statutory Notice and therefore on 25 March 2022, MOMPL proceeded to file a winding-up petition against PCPP in the High Court (“Winding-up Petition”). The Winding-up Petition was heard on 6 September 2022 and a Winding-Up Order against PCPP was granted in the terms prayed for together with costs. This means that PCPP has been wound up and a liquidator has been appointed.
Page 24 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
Proceedings Post Winding Up of PCPP
- On 24 October 2022, MOMPL filed its Proof of Debt against PCPP together with the supporting documents to substantiate its entire claim
a. During the first creditor’s meeting which was held on 11 April 2023, MOMPL was informed by PCPP’s liquidator that it was PCPP’s only creditor and that the liquidator has admitted the full amount of MOMPL’s claim against PCPP amounting to USD121.9 million as stated in the Proof of Debt. The liquidator has since requested a cash call from PCPP’s shareholders pursuant to the terms of the Joint Operating Agreement executed in respect of PCPP. PCSB responded to dispute the cash call. Following this, the liquidator requested for further information to support PCSB’s position. Since there was no response, the liquidator instructed their solicitors to file an application for directions in the Winding Up Court for the cash call to be effectively ordered against PCSB, PPHE and PVEP.
b. On 15 August 2023 a Forms of Summons was filed by the liquidator to seek directions from the High Court for the cash call (“Application for Directions”). On 2 November 2023, the High Court allowed the liquidator’s application to serve the court papers out of the jurisdiction, to allow the liquidator to serve the cause papers on PPHE and PVEP in Vietnam and Indonesia.
c. PCSB appointed solicitors and filed an application to intervene (for PCSB to be added as the party to the proceedings) and the Court allowed PCSB’s application to intervene as a party to the liquidator’s application on 8 January 2024. A further case management was fixed for 24 January 2024 for the Court to give directions on filing of affidavits, written submissions and to fix a hearing date for the liquidator’s Application for Directions.
d. MOMPL also filed an application to intervene as a party to the liquidator’s Application for Directions to enable MOMPL to actively participate in the proceedings. MOMPL’s application to intervene was heard and allowed by the High Court on 23 January 2024.
e. On 29 July 2024, the liquidator withdrew the Application for Directions, with no liberty to file afresh and with costs of RM5,000 to be paid to MOMPL.
f. On 2 August 2024, MOMPL’s solicitors wrote to the liquidator to inquire what further active steps are being taken to explore recovery. On 6 August 2024, the liquidator responded to confirm that upon the advice of PCPP’s solicitors, the liquidator intends to commence arbitration proceedings against the shareholders of PCPP.
g. MOMPL’s solicitors continue to engage with the liquidator and explore avenues for recovery. (collectively referred to as the “Legal Proceedings”)
Page 25 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
iii) Malaysia Marine and Heavy Engineering Sdn Bhd ("MMHE") and Haumea Offshore Sdn Bhd ("Haumea")
On 15 April 2025 MMHE received a Notice of Arbitration dated 11 April 2025 ("the Arbitration") from the solicitors for Haumea Offshore Sdn Bhd (formerly known as Trans Fame Offshore Sdn Bhd) in relation to claims arising from Subcontract No. 3900007170 titled "Hook-up And Commissioning Works And Marine Vessels For Bokor Phase 3 Redevelopment Project (Package A)" (hereinafter referred to as "the Subcontract").
Under the Subcontract, Haumea was appointed by MMHE as the subcontractor to provide Hook-up and Commissioning ("HUC") works, including marine vessels, for the Bokor Phase 3 Redevelopment Project ("the Works"). In the Notice of Arbitration, Haumea claims that there were disputes between Haumea and MMHE under the Subcontract in relation to Haumea's performance of the Works. Haumea has included an indicative amount of its alleged loss as part of the Notice of Arbitration, at approximately RM57.3 million, including interest, costs and/or other reliefs.
On 20 May 2025, the High Court of Johor Bahru granted an ex-parte injunction in favour of MMHE, restraining Haumea from registering the Notice of Arbitration ("NOA"), commencing or proceeding with arbitration in connection with the said NOA pending the determination by the High Court of its validity.
The High Court has proceeded with the inter-parte hearing of the interim injunction application on 3 July 2025 and fixed the decision on 5 August 2025. The court also on the same date fixed for case management to MMHE's Originating Summons ("OS") on:
a) A declaration that the NOA is invalid, premature and wrong in law; and
b) An injunction to restrain Haumea from registering, proceeding and/or commencing any arbitration proceedings in relation to the NOA.
On 5 August 2025, the High Court at Johor Bahru allowed Haumea's application to set aside MMHE's ex-parte injunction with the cost of RM10,000 and on 27 October 2025 allowed Haumea's application to set aside MMHE's OS with cost of RM10,000 subject to allocatur fees. MMHE had filed the Notice of Appeal against both decisions.
Following the High Court's decision on the OS, Haumea may proceed with the arbitral proceedings under the Notice of Arbitration. Nevertheless, in the event MMHE's appeal against the High Court's decision is allowed by the Court of Appeal, the arbitral proceedings, if any, commenced under the Notice of Arbitration, would be rendered null and void.
Page 26 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B10. DIVIDENDS
The Board of Directors has approved a first tax exempt dividend of 8.0 sen per share in respect of financial year 2026 amounting to RM357.1 million. The proposed dividend will be paid on 25 June 2026 to shareholders registered at the close of business on 12 June 2026.
A depositor shall qualify for entitlement to the dividend only in respect of:
i) Shares transferred into the Depositor's Securities Account before 4.30 pm on 12 June 2026 in respect of Ordinary Transfers; and
ii) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of Bursa Malaysia Securities Berhad.
B11. TRADE AND OTHER RECEIVABLES, AND CONTRACT ASSETS
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| Trade receivables | | |
| Third parties | 3,627.4 | 3,445.8 |
| Fellow subsidiaries | 549.4 | 61.6 |
| Associates and joint ventures | 37.2 | 29.7 |
| | 4,214.0 | 3,537.1 |
| Contract assets | 484.7 | 507.1 |
| Other receivables | 613.6 | 559.7 |
| Less: Impairment | (659.4) | (605.9) |
| Trade and other receivables | 4,652.9 | 3,998.0 |
The Group's normal trade credit terms with its customers range from 7 to 90 days. Credit terms are assessed and approved on a case-by-case basis and each customer is assigned a maximum credit limit.
The ageing of trade receivables (excluding amount due from customers on contracts) as at reporting date are as follows:
| | 31 March 2026
RM million | 31 December 2025
RM million |
| --- | --- | --- |
| Current | 1,244.9 | 867.5 |
| Past due 1-30 days | 229.2 | 142.0 |
| Past due 31-60 days | 75.0 | 51.8 |
| Past due 61-90 days | 81.0 | 23.5 |
| Past due more than 90 days | 2,583.9 | 2,452.3 |
| | 4,214.0 | 3,537.1 |
| Less: Impairment | (601.9) | (605.0) |
| Trade receivables, net | 3,612.1 | 2,932.1 |
Page 27 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
B12. DERIVATIVES
As part of the Group's efforts to hedge its interest rate risks, the Group entered into interest rate swap ("IRS") arrangements, a form of derivative to convert its interest exposure from floating rate into fixed rate. The maturity of the IRS arrangements coincides with the maturity of the original floating rate loans.
The Group had also entered into forward currency contracts to manage its foreign currency risk.
Details of the Group's derivative financial instruments outstanding as at 31 March 2026 are as follows:
| Contract/Tenure | Notional Value
RM million | Fair Value as at
31 March 2026
RM million |
| --- | --- | --- |
| Foreign currency contracts | | |
| Within 1 year | 162.1 | (1.4) |
| | 162.1 | (1.4) |
| Interest rate swaps | | |
| 1 year to 3 years | 220.1 | 122.4 |
| More than 3 years | 12,696.9 | 75.6 |
| | 12,917.0 | 198.0 |
The Group had entered into IRS arrangements to hedge against adverse movements in interest rates in compliance with the facility agreement as well as forward currency contracts designated as hedges of expected future payments denominated mainly in United States Dollars.
There is no significant change for the financial derivatives in respect of the following since the last financial year ended 31 December 2025:
(a) the credit risk, market risk and liquidity risk associated with these financial derivatives;
(b) the cash requirements of the financial derivatives; and
(c) the policy in place for mitigating or controlling the risks associated with these financial derivatives.
B13. FAIR VALUE CHANGES OF FINANCIAL LIABILITIES
The Group's derivative financial instruments such as interest rate swaps and foreign currency contracts are measured at fair value. The fair value of the derivative financial instruments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business at the end of reporting date. For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include:
(a) using recent arm's length market transactions;
(b) reference to the current fair value of another instrument that is substantially the same; and
(c) discounted cash flow analysis or other valuation models.
Page 28 of 29
MISC BERHAD
(Registration No. 196801000580 (8178-H))
QUARTERLY REPORT
FOR FIRST QUARTER ENDED 31 MARCH 2026
PART B – OTHER EXPLANATORY NOTES (continued)
Any gains or losses arising from changes in fair value on derivative financial instruments during the year end that do not qualify for hedge accounting and the ineffective portion of an effective hedge are recognised in the income statement.
During the financial year, the Group recorded the following gain/(loss) from change in fair value of derivative financial instruments:
| | Quarter Ended
31 March 2026 | | Cumulative 3 Months Ended
31 March 2026 | |
| --- | --- | --- | --- | --- |
| | Gain recognised in income statements | Gain/(loss) recognised in other comprehensive income | Gain recognised in income statements | Gain/(loss) recognised in other comprehensive income |
| | RM million | RM million | RM million | RM million |
| Interest rate swaps | - | 16.2 | - | 16.2 |
| Foreign currency contracts | 0.0 | (0.2) | 0.0 | (0.2) |
B14. EARNINGS PER SHARE
| | Quarter Ended
31 March | | Cumulative 3 Months Ended
31 March | |
| --- | --- | --- | --- | --- |
| | 2026 | 2025 | 2026 | 2025 |
| Basic earnings per share are computed as follows: | | | | |
| Profit for the period attributable to equity holders of the Corporation (RM million): | 741.4 | 705.7 | 741.4 | 705.7 |
| Weighted average number of ordinary shares outstanding (million) | 4,463.7 | 4,463.7 | 4,463.7 | 4,463.7 |
| Basic earnings per share (sen) | 16.6 | 15.8 | 16.6 | 15.8 |
The Group does not have any financial instrument which may dilute its basic earnings per share.
By Order of the Board
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