MISC Annual Report 2017

81 Strategy & Performance RESILIENT FINANCIAL PERFORMANCE Having implemented effective measures to drive robust operational performance amidst the year’s challenging operating environment, I am pleased to report that MISC turned in a steadfast financial performance for the year in review. For the financial year ended 31 December 2017, the MISC Group posted revenue of RM10,068.2 million, a 5% increase against the preceding year’s revenue of RM9,597.2 million. The higher revenue was primarily attributable to full year consolidation of Gumusut-Kakap Semi-Floating Production System (L) Limited (GKL), higher revenue from GKL’s variation order approval, construction revenue from Floating, Storage and Offloading Vessel (FSO) Benchamas 2 and lease commencement of two new LNG vessels, namely the Seri Cempaka and Seri Cenderawasih. The Group turned in an operating profit of RM2,733.6 million, which was 22.6% higher than 2016’s operating profit of RM2,228.8 million. Subsequently, we recorded profit before tax of RM2,003.6 million in 2017, some 28.8% lower than the preceding year’s profit before tax of RM2,814.0 million. This was mainly due to the gain in the equity buy-back of GKL recognised in 2016 and the impairment loss on certain LNG and Product vessels during the year. As at the year’s end, the Group’s total assets stood at RM50,469.8 million or 10.1% lower than the RM56,151.3 million as at the end of 2016. The value of the Group’s total assets was reportedly lower mainly due to the strengthening of the Ringgit against the US Dollar, the functional currency of the Company and significant subsidiaries within the Group, as well as the aforementioned assets impairment. The Group’s total liabilities at the end of 2017 of RM14,565.0 million were 13.4% lower than the RM16,820.3 million posted at the end of 2016. This was mainly due to the settlement of a term loan during the year and lower provisions reported as at 31 December 2017 as a result of in-charter provision reversal after the early redelivery of the remaining legacy in- chartered liner vessels. Const i tuent of t he FTSE 4 Good Bursa Malays i a Inde x s i nce 2014 & atta i ned h i gher rat i ngs i n 2017. ALAM was named t he "Best i n Mar i t i me Educat i on & Tra i n i ng" at t he Seatrade Mar i t i me Awards As i a 2017. PRESIDENT/GROUP CEO ’ S REVIEW Won "Tanker Operator of t he Year" at t he Lloyd's L i st As i a Pac i f i c Awards 2017.