MISC Annual Report 2017

113 Strategy & Performance MARKET REVIEW As a substantial part of the business is directly related to the Oil & Gas industry and PETRONAS-related activities, MMS has been quick to adapt to current market trends and low oil prices by continuously reviewing the organisation to ensure resources are optimised so that services are delivered consistently and effectively. In line with this, MMS supports PETRONAS’ Cost Reduction Alliance or CORAL 2.0 industry-wide initiatives through cost efficiency on its service delivery. MMS is also providing support to the Integrated Logistic Tower project that will bring significant changes to the upstream marine sector. This calls for all upstream vessels that are to be utilised to be inspected and vetted exclusively by MMS. KEY DEVELOPMENTS In July 2017, the segment completed a rebranding exercise, changing its name from PETRONAS Maritime Services Sdn. Bhd. (PMSSB) to MISC Maritime Services Sdn. Bhd. or MMS. This exercise also involved the restructuring of business segments within MMS with the aim of optimising costs and efficiencies. MMS also recently received ISO9001:2015 quality management certification. This important achievement underscores the segment’s commitment towards providing a better service experience to its clients, particularly on the port and terminal management and inspection services front. The year in review also saw MMS achieving 10.51 million safe man-hours with no LTI. MOVING FORWARD MMS expects that to some extent 2018 will continue to be a challenging year due to the geopolitical uncertainties affecting the global Oil & Gas industry plus ongoing cost cutting measures by clients. However, on a brighter note, given the planned expansion of PETRONAS’ marine facilities and the requirement by the same to ensure vessel integrity for the safe conveyance of petroleum products, MMS expects more opportunities to come its way. Moving forward, MMS will continue to explore opportunities in new markets as well as with other PAC operators and PETRONAS joint venture partners to boost its performance and deliver value to the Group. The segment also aims to grow its maintenance services to cater to PCSB’s requirements for a one-stop maintenance centre for Single Buoy Mooring (SBM) facilities in Peninsular Malaysia, Sabah and Sarawak. The segment will also seek out opportunities to offer piloting and loading master services to other SBM owners such as the Labuan Crude Oil Terminal. MANAGEMENT DISCUSSION & ANALYSIS PORTS & TERMINAL SERVICES Achieved 10.51 million Safe man-hours with no Loss Time Injuries (LTI) Received ISO9001:2015 quality management certification Further details on Ports & Terminal Services: www.misc.com.my/solutions/ port-terminal-services Successfully handled 35,000 VESSELS of up to 350,000 dwt