MISC Annual Report 2017

93 Strategy & Performance Today, AET is involved in the global marine transportation of crude oil, Clean Petroleum Products (CPP) and chemicals; lightering and Ship-to-Ship (STS) transfer of oil; the provision of Dynamic Positioning Shuttle Tankers (DPSTs) to the world’s Oil Major; and the provision of Modular Capture Vessels (MCVs) for marine well blowout containment systems in the US Gulf (USG). As at 31 December 2017, AET’s fleet strength stood at 96 commercial vessels including Very Large Crude Carriers (VLCCs), MCVs, DPSTs, Lightering Support Vessels (LSVs), Panamax, Suezmax and Aframax vessels, as well as CPP and chemical tankers. Two Suezmax newbuilds, Eagle San Francisco and Eagle San Jose, were delivered early this year in January and February respectively. As part of its ongoing fleet renewal programme, AET took delivery of one Aframax vessel, Eagle Barcelona in January 2018 with the other Aframax, Eagle Brisbane scheduled for delivery in March 2018. AET is one of the market leaders in the USG lightering market with the ability to provide end-to- end marine logistic services to the global petroleum industry. It is also the only tanker company worldwide to possess MCV capabilities and experience. MARKET OVERVIEW The year 2017 proved to be a challenging year for tanker owners as the market continued to be suppressed by tonnage oversupply and relatively lacklustre demand. While the lifting of sanctions on Iran in January 2016 and the end of the US crude export ban back in December 2015, continued to provide additional support for tanker demand in 2017, this, however, was offset by oil supply disruptions in Nigeria, Libya and Venezuela. US exports contributed to AET’s overall USG activities through reverse lightering activities. An OPEC-led production cut in late 2016, aimed at curtailing oil output and shoring up oil prices adversely affected the demand for crude tankers in 2017 (given the smaller amount of oil that needed to be moved). This also had an effect on stock and inventory withdrawals. MANAGEMENT DISCUSSION & ANALYSIS PETROLEUM & PRODUCT SHIPPING 55 received the Jones F. Devlin Awards for accident-free operations AET’S VESSELS Owner and operator of a full suite of CRUDE AND CLEAN product tankers 54 awarded the Environmental Achievement Awards AET’S VESSELS Further details on Petroleum & Product Shipping www.misc.com.my/solutions/petroleum-shipping Market Leader for LIGHTERING OPERATIONS in the US Gulf The only tanker company globally to possess MCV CAPABILITIES & experience