MISC BERHAD • Annual Report 2016 56 President/Group CEO’s Review and MD&A In 2016, AET purchased the remaining 50% of our joint venture equity in Paramount Tankers, enabling AET to take control of both the technical and commercial management of six Aframax vessels to ensure optimum operational efficiency. As a result, we now have full integration between our petroleum and chemical shipping operations and are able to respond instinctively to the changing needs of our customers in each market. On the LNG Shipping front, we took delivery of two newbuild LNG carriers in 2016 and 2017, namely the Seri Camellia and Seri Cenderawasih. These are the first two LNG carrier in a series of five MOSS-Type LNG carriers ordered from Hyundai Heavy Industries Co., Ltd. Joining our fleet as our 26th and 27th LNG carriers respectively, these newbuilds reinforce our position as a reliable and safe transporter of LNG globally. We are proud to share that the Seri Camellia was recognised as one of the Great Ships of 2016 by the Maritime Reporter and Engineering News. Our Offshore Business segment successfully completed the acquisition of the remaining 50% equity interest in Gumusut-Kakap Semi-Floating Production System (L) Limited which will now enable us to fully consolidate the future earnings of this longterm charter asset. August 2016 marked the Offshore Business segment’s maiden foray into Thailand’s offshore Oil & Gas market via the signing of a 10-year contract for the lease and operations of a Floating, Storage and Offloading Vessel (FSO) for the FSO Benchamas 2 Project with Chevron Offshore Thailand Ltd. in the Gulf of Thailand. Our success here is all the more noteworthy given that we had to contend against intense competition from well-established international players to secure the project. With this contract in hand, it opens up opportunities for us to do business with Chevron in other areas where it operates. Meanwhile, our Marine & Heavy Engineering Business segment under MHB completed the engineering, procurement and construction of Malikai TLP for Shell and Petronas, successfully. This structure, the first of its kind in Malaysia, underscores MHB’s commitment to operational excellence and to delivering on its promises amidst challenging times. We also celebrated the sail away of the Group’s first Marginal Marine Production Unit, the MaMPU 1, a fit-for-purpose Floating Production, Storage and Offloading (FPSO) unit for the development of marginal fields. Our success in 2016 was the result of us recognising the fact that global energy volatility would linger for yet a while and taking the necessary steps to reshape and future-proof our business. By taking measures to strengthen their positions and their offerings to customers, our key business segments were able to mitigate the full brunt of marketplace volatility. The year in review also saw us divesting the entire equity interest in our Logistics business under wholly-owned subsidiary MISC Integrated Logistics Sdn. Bhd. (MILS). We can now focus our efforts fully on our core business of energy and petroleum-related shipping as well as channel the sale proceeds from the divestment to other potential growth areas within our core business. I am delighted to announce that MISC continued to gain recognition for its commitment to operational excellence on several fronts. MISC won the Operational Excellence Award at the annual Tanker Shipping & Trade Conference & Awards held in London in recognition of our cadet sponsorship programme, in particular our innovative ship-berth training and crew competency management initiatives. MISC was also shortlisted for the Lloyd’s List Asia Awards 2016 in two award categories, namely “The ABS (American Bureau of Shipping) Tanker Operator of the Year” and “The HPH (Hutchison Port Holdings) Trust Safer Cleaner Seas Award”. The former award recognises
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