The Group’s profit before tax (PBT) rose 9.6% to RM2,814.0 million in 2016 against PBT of RM2,566.9 million in 2015. The rise in profit was mainly due to the recognition of gains on acquisitions and the disposal of subsidiaries over the course of the year. GOOD SHAREHOLDER VALUE CREATION I am delighted to report that the Group’s balance sheet continues to remain healthy and will serve us well as we pursue our agenda of renewed growth. As at the end of 2016, the Group’s cash, deposits and bank balances stood at RM6,559.2 million, some 16.0% higher than the preceding year’s figure. Following an increase in total borrowings during the year, MISC’s net debt-to-equity ratio increased to 0.15 times at the end of 2016 in comparison to 0.02 times at the end of 2015. The Group’s earnings per share (EPS) increased to 57.8 sen in 2016 from 55.3 sen previously. As at 31 December 2016, profit attributable to the equity holders of MISC of RM2,581.6 million was some 4.6% or RM113.8 million higher than the RM2,467.8 million profit attributable to equity shareholders in 2015. With a stronger financial position, MISC is now well placed to adopt a more aggressive growth trajectory. Our strong cash position also gives us the leeway to leverage on bargain opportunities particularly during the prevailing Oil & Gas industry downturn. While higher profits during the year, together with a revitalised balance sheet, undoubtedly support a healthier dividend payment to our shareholders, the Group is also mindful of the need to allocate sufficient financial resources to support MISC’s renewed growth agenda. Your Board of Directors will continue to pursue a policy which strikes an optimum balance between maintaining a reasonable dividend pay-out commensurate with the financial health of the Group while conserving sufficient internal resources for investment purposes. In respect of the financial year ended 31 December 2016, a first interim tax exempt dividend of 10.0 sen per share amounting to RM446.4 million was declared in August and paid out in September 2016. In February 2017, the Board declared a second tax exempt dividend of 20.0 sen per share amounting to RM892.8 million which was paid out on 16 March 2017. MISC continues to create good value for our shareholders through the awards and accolades for excellence that we garner on several fronts. I am pleased to report that in December 2016, we have once again secured our position as a constituent of the FTSE4Good Bursa Malaysia Index, as a result of the Group’s strong performance across a variety of Environmental, Social and Governance (ESG) practices. The FTSE4Good Bursa Malaysia Index constituents are selected from the top 200 Malaysian stocks, screened in accordance with transparent and defined ESG criteria. The index has been designed to identify Malaysian companies with recognised corporate responsibility practices. We turned in an improved overall score which came on the back of an independent assessment of the MISC Sustainability Report 2015 by FTSE analysts. MISC BERHAD • Annual Report 2016 48 CHAIRMAN’S STATEMENT With a stronger financial position, MISC is now well placed to adopt a more aggressive growth trajectory. Improved FTSE4Good Bursa Malaysia Index
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