MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 269 Financial Statements 35. SEGMENT INFORMATION (a) Business segments The operating segments of the Group are as follows: (i) LNG - provision of liquefied natural gas (“LNG”) carrier services; (ii) Petroleum - provision of petroleum tanker and chemical tanker services; (iii) Offshore - own, lease, operation and maintenance of offshore, floating, production and offloading terminals; (iv) Heavy Engineering - marine repair, marine conversion and engineering and construction works; and (v) Others - management of operation of ports and marine terminals, provision of marine support services and consulting services relating to marine matters, provision of ship management services, marine education and training, and other diversified businesses. Transfer prices between business segments are set on an arm's length basis in a manner similar to transactions with third parties. Segment revenue, expenses and results include transfers between business segments. These transfers are eliminated on consolidation.