With the gradual recovery in oil prices, the outlook for the upstream oil and gas industry should also begin to improve. This will set the stage for gradual recovery in global offshore exploration and production investment, particularly in relation to developments within the Atlantic Basin. Despite the improved market sentiment, the impact may not flow through to the Marine and Heavy Engineering segment immediately. The segment will continue to focus on cos t managemen t and resou rce optimisation to reduce its operating cost in line with the outlook for the industry. Moving forward, MHB will intensify its efforts to replenish its order book by leveraging on onshore segment activities as well as hook-up and commissioning and facilities improvement activities. It is expected that the stable financial performance of the Group’s offshore business segment will continue to be supported by long-term contracts. In view of the above, your Board of Directors is confident that from an operational perspective, the Group will be able to sustain its financial performance for 2017. To fulfil our aspiration of consistently providing better energyrelated maritime solutions and services, MISC will capitalise on timely investment opportunities to ensure future business sustainability. Leveraging on our healthy balance sheet, we will allocate both our capital and human resources toward building value in our existing businesses. At the same time, we will work on strengthening the quality of our income by expanding into growth areas that will provide us with recurring long-term income streams. Even as we renew our pursuit of growth, we will work to build a sustainable and responsible business by consistently providing better energy-related maritime solutions and services. To this end, we will push for more stringent performance standards across the sector and demonstrate our commitment to safeguarding the environment. In all that we undertake, we will ensure we adopt a unified approach, a clear direction for growth and a shared understanding of who we are and what we can achieve. IN APPRECIATION The MISC Group continues to strengthen on the back of a focused growth agenda, solid teamwork and robust operational and financial performance. For this, we have many parties to thank. I would like to express my heartfelt appreciation to all our customers, suppliers, business partners and financiers, for their steadfast support and cooperation. My utmost gratitude to the loyal management and employees of MISC for their excellent work, unwavering commitment and resilience amidst the year’s challenges which certainly helped us deliver another fine performance. To my esteemed colleagues on the Board, please accept my sincere thanks for your wise counsel and astute insights in guiding the Group to greater heights of success. Last but not least, my deep gratitude to you, our shareholders, for your unremitting confidence and faith in us, especially amidst the challenges of our industry. Even as you have been patient with us as we ride out the storm assailing our industry, we ask for your continued patience as we get down to pursuing sustainable growth. I trust that all our stakeholders will continue to accord us their unwavering support as we will charge full steam ahead, confident and driven by our aspiration of “moving energy to build a better world”. Rest assured that the MISC Group will continue to remain dynamic and resilient while leveraging on the synergistic partnerships amongst our business segments and stakeholders to grow in a sustainable manner. DATO’ AB. HALIM BIN MOHYIDDIN Chairman 13 March 2017 53 Performance Review
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