MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 34 MISC2020 JOURNEY PRIORITIES OBJECTIVES JOURNEY SO FAR (2017) MOVING FORWARD (2018-2020) LNG Shipping • Grow third party business portfolio. • Develop concepts for non- conventional Liquefied Natural Gas (LNG) solutions. • Realignment and refinement of strategy to respond to market developments and changes in customers’ requirements. • Enhanced conventional LNG shipping income with delivery of Seri C vessels. • Participated in various tender submissions to capture non- conventional LNG business. • Continue to pursue selective conventional LNG shipping opportunities taking note of shorter term contracting requirements. • Aggressively venture into new applications like Floating Storage Regasification Unit (FSRU) and LNG bunkering. • Develop new LNG solutions to open up new markets in order to have a balanced portfolio with high resilience including collaboration with PETRONAS for total value chain propositions. Petroleum & Product Shipping • Pursuemore time charters for conventional fleet. Serviced approximately 30 Time Charters (TCs) of various terms and rates. Notable chartering activities in 2017 : • Acquired two on-water Very Large Crude Carriers (VLCCs) from Gener8 Maritime and fixed them on long-term TCs. • Delivered the first two owned LR2 newbuilds to service long-term TCs with an Oil Major. • Serviced a landmark three-year global Aframax Contract of Affeightment (COA) with an Oil Major – the first of its kind in the world. • Injected four product tankers into the WOMAR Tanker Pools. • Performed a 4+1 years TC with Repsol for Eagle San Francisco – the first for AET Suezmax and with Repsol, opening up potentials for higher value assets with this global energy company for MISC Group. • Expand the VLCC fleet and develop the business sector into a performed income generator. • Optimise the midsize tanker fleet focusing on efficiency and rejuvenation to ensure long-term competitiveness. • Restructure the Products Asset Portfolio focusing on fleet efficiency and business sustainability by optimising the fleet size and mix. • Develop more LR projects to build the performed income portfolio. • Leverage on existing long-term relationships with Oil Majors in pursuing other business opportunities for the MISC Group. • Expand niche market assets such as shuttle tankers with time charter. • Performed new contracts from Statoil to provide two Dynamic Positioning Shuttle Tanker (DPST) newbuilds on a long-term basis from 2019. • Opted to equip two Aframax newbuildings with LNG dual fuel systems, moving into niche asset markets. • Continue to seize opportunities to grow its DPST market share in both the North Sea and Latin America. • Establish new niche markets for the new breed of green vessels with like-minded charterers.