59 ATLANTIC BASIN OUR PRIORITIES OVER THE NEXT 5 YEARS OFFSHORE • Explore acquisition opportunities arising from asset divestments by O&G players globally • Pursue organic growth when oil price recovers PETROLEUM • Pursue more time charters for conventional fleet • Develop more niche market assets such as shuttle tankers with time charter LNG • Pursue more third party long-term charters • Develop concepts for non-conventional LNG solutions MHB • Develop larger recurring income base e.g. marine repair business • Manage cost and process efficiency Performance Review GROWTH REGION IN THE NEXT 5 YEARS Offshore Business: This business segment will explore acquisition opportunities arising from asset divestments by Oil & Gas players globally as well as pursue organic growth when the oil price recovers. Ultimately, the Offshore Business will move beyond Malaysian shores and expand its international footprint. Marine & Heavy Engineering: This segment under MHB will look to reduce the cyclicality of its revenue streams by developing a larger recurring income base (from the marine repair business for instance) while managing cost and process efficiencies. To achieve sustainable ROACE of more than 10% by 2020, we will work hard to balance our portfolio of assets vis-à-vis cash and profit generating assets. At the same time, we will restructure our mix of long-term capital (debt to equity) for competitive cost of capital. Finally, we will endeavour to find the right mix of debt to equity to drive long-term ROACE. We are of the opinion that size does not matter but that quality of income and cash flow is paramount. As MISC ventures forth, we will continue to focus on shipping and maritimerelated Oil & Gas activities and not stray from our four core business segments. Plans are underway for the Group to tap opportunities in our next growth region, namely the Atlantic Basin, over the next five years and we will announce our plans as they unfold.
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