MISC Annual Report 2017

71 Strategy & Performance DATO’ AB. HALIM MOHYIDDIN Chairman The Group ' s res i l i ence i s underp i nned by our strateg i c focus , h i ghly capable talent pool , and above all , a culture of cont i nuous i mprovement w i t h i n our operat i ons as well as an emphas i s on i nnovat i on across t he Group. FINANCIAL PERFORMANCE AND VALUE CREATION For the financial year ended 31 December 2017, the MISC Group recorded a credible performance turning in revenue totalling RM10,068.2 million. The increase in revenue of 5% was primarily attributable to full year consolidation of Gumusut-Kakap Semi-Floating Production System (L) Limited (GKL), higher revenue fromGKL’s variation order approval, construction revenue from Floating, Storage and Offloading Vessel (FSO) Benchamas 2 and lease commencement of two new LNG vessels were the main contributors to the increase in Group revenue, namely the Seri Cempaka and Seri Cenderawasih. The Group’s Profit Before Tax (PBT) fell by 28.8% to RM2,003.6 million in 2017 against PBT of RM2,814.0 million in 2016. This drop in profit was mainly due to the gain in the equity buy-back of GKL recognised in 2016 and the impairment of LNG and product vessels during the year. The Company remains committed to creating value for its shareholders and this is reflected in our healthy balance sheet. As at the end of 2017, MISC had registered cash, deposits and bank balances of RM5,900.7 million, some 10% lower than 2016’s figure of RM6,559.2 million. Following a decrease in total borrowings and total equity reported for 2017, the Group’s net debt-to-equity ratio increased marginally to 0.16 times at the end of 2017 as compared to 0.15 times at the end of 2016. The Group’s Earnings Per Share (EPS) dropped to 44.4 sen in 2017 from 57.8 sen previously. For the year ended 31 December 2017, the profit attributable to the equity holders of MISC was lower by 23% dropping to RM1,981.5 million from the RM2,581.6 million in 2016. Your Board of Directors remains committed to pursuing a policy which seeks to strike an ideal balance between providing a reasonable dividend pay-out corresponding with the financial health of the Group while preserving sufficient internal resources for investment purposes. In respect of the financial year ended 31 December 2017, a total of 30.0 sen per share of tax exempt dividend amounting to RM1,339.1 million was declared on quarterly basis, consistent with the total dividend declared for the financial year 2016. The Group also remains committed to creating intangible value for our shareholders. The many awards and accolades for excellence that MISC bagged in a variety of areas underscore this intent. I am especially proud to announce that MISC was hailed “Tanker Operator of the Year” at the Lloyd’s List Asia Pacific Awards 2017 event, the first such win for the Group. One of the most notable awards within the international maritime industry,