MISC Annual Report 2017

57 Strategy & Performance GROUP FINANCIAL REVIEW PROFIT BEFORE TAX Group profit before tax of RM2,003.6 million was 28.8% lower than FY2016 profit before tax of RM2,814.0 million. This contraction was largely due to higher impairment loss on ships, offshore floating asset and other investment by RM328.8 million in the current year. Furthermore, FY2016 included gains on acquisition of subsidiaries which amounted to RM903.7 million. EARNINGS PER SHARE (SEN) Profit attributable to the equity holders of the Corporation amounting to RM1,981.5 million translates to earnings per share of 44.4 sen in FY2017 as opposed to 57.8 sen in FY2016. DIVIDENDS In respect of FY2017, the Board had approved and declared on quarterly basis a total tax exempt dividend of 30.0 sen per share amounting to RM1,339.1 million. The aggregated tax exempt dividend of 30.0 sen per share or RM1,339.1 million for FY2017 was consistent with the dividend declared and paid in respect of FY2016. TOTAL ASSETS Group total assets as at 31 December 2017 of RM50,469.8 million was 10.1% lower than RM56,151.3 million as at 31 December 2016. The decrease in Group total assets were mainly due to the strengthening of Malaysian Ringgit against United States Dollar (USD) combined with the impairment loss on ships, offshore floating asset and other investment. The Group’s cash, deposits and bank balances as at 31 December 2017 of RM5,900.7 million was 10.0% lower than RM6,559.2 million as at the end of FY2016. TOTAL LIABILITIES Group total liabilities of RM14,565.0 million as at 31 December 2017 was 13.4% lower than RM16,820.3 million as at 31 December 2016, mainly from the loan repayments made during the year and lower provisions as a result of a reversal of in-charter provisions following early redelivery of the liner vessels. SHAREHOLDERS’ EQUITY Shareholders’ equity of RM34,844.2 million as at 31 December 2017 was 8.5% lower than RM38,065.7 million as at 31 December 2016. The decrease in shareholders’ equity was mainly due to currency translation loss of RM3,398.0 million and lower profit attributable to equity holders of RM1,981.5 million in FY2017. The Corporation also paid dividends totalling RM1,830.2 million during the year. NET DEBT/ EQUITY RATIO The Group’s net debt-to-equity ratio of 0.16 as at 31 December 2017 was higher compared to 0.15 as at 31 December 2016 following decrease in shareholders’ equity during the year under review. CAPITAL EXPENDITURE REQUIREMENTS Group committed capital expenditure as at the end of FY2017 stood at RM3,831.7 million. Based on our strong cash position as at the end of FY2017 and existing funding facilities, the Group should be able to fund committed capital expenditure and growth plans.