MISC BERHAD • Annual Report 2016 50 CHAIRMAN’S STATEMENT This recognition underpins MISC’s position as a role model for responsible corporate behaviour within the Malaysian market and reflects our commitment to managing our ESG risks. Our subsidiary, MHB, which is also a constituent of the FTSE4Good Bursa Malaysia Index, too, maintained its position based on an earlier review in 2016. The year saw the MISC Sustainability Report 2015 being shortlisted for the second time for the prestigious ACCA MaSRA (Malaysian Sustainability Reporting Awards). This follows our winning the award for the “Best FirstTime Reporting” category back in 2014 for the MISC Sustainability Report 2013. This recognition is testament that we are making good progress in the way of embedding sustainability across the Group, specifically in relation to the standards set for disclosure of our nonfinancial performance. Our commitment to creating good shareholder value was also reflected in our winning the coveted The Edge Billion Ringgit Club (BRC) Corporate Award 2016 for achieving the highest growth in profit before tax over three years under the category of Companies with RM10 Billion to RM40 Billion Market Capitalisation (Big Cap Companies). The Group’s solid financial performance was acknowledged by Standard & Poor’s Rating Services (S&P) which upgraded our long-term corporate credit rating and the senior unsecured longterm ratings on our bank loans to ‘BBB+’ from ‘BBB’. According to S&P, our performance in the first half of 2016 was “solid, better than expected, with cash flows remaining resilient amid a difficult market environment”. The upgrade also reflects S&P’s expectation that the Group will maintain solid cash flow adequacy right through 2018 because of a combination of steady cash flows, moderating capital spending and prudent financial policies. Prudent cash-flow management is critical in the shipping industry and has proven to be one of the key factors to surviving the unexpected, prolonged downturn. At the same time, S&P also affirmed their rating ‘axA+’ long-term ASEAN regional scale rating on MISC. Our leadership team continues to do us proud. The 2016 Lloyd’s List annual special edition entitled “100 Most Influential People in the Shipping Industry” featured our President/Group CEO, Mr Yee Yang Chien, for the second time in a row while AET’s President & CEO, Capt. Rajalingam was featured in Tanker Shipping & Trade’s list of top 50 tanker industry leaders of 2016.
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