MISC Annual Report 2018

MOVING FORWARD MMS expects 2019 will continue to be a challenging year due to the uncertain geopolitical situation affecting the global oil industry and cost cutting measures by the clients. However, the outlook for MMS remains positive given the planned expansion of PETRONAS’ marine facilities, the rise of decommissioning activities, and the requirement to ensure vessel integrity for the safe conveyance of petroleum products. MMS will continue to actively seek opportunities with other oil major companies, production agreement contractors and PETRONAS joint venture partners, as well as actively participating with other segments of MISC Group in international ventures. This will give MMS the opportunity to strengthen its offerings and boost the performance of the company and deliver value to the Group in the long-term. MARKET REVIEW In 2018, there was a higher demand for marine services, especially vetting and inspection services, as the oil price recovered and started to stabilise. In port & terminal services, there was some volatility due to changing trade patterns in the region. KEY DEVELOPMENTS 2018 As a substantial part of the business is directly related to the Oil & Gas industry and PETRONAS-related activities, MMS has quickly adapted to current market conditions and is continuously reviewing the organisation to ensure optimal use of resources to deliver consistent and efficient services for long-term sustainability and growth. In 2018, MMS recorded higher demand for vetting and inspection services which were not limited to vessels located in Malaysia and Asian region, but also encompassed areas of Oceania, South America, Europe and even Turkmenistan in the Caspian Sea. In addition, MMS secured a variation order with PETRONAS Carigali Sdn. Bhd. (PCSB) that could potentially contribute to our earnings in the future. We also entered into an agreement to provide Roving Marine Marshals for PCSB’s chartered offshore vessels to support upstream activities. MANAGEMENT DISCUSSION & ANALYSIS PORT & TERMINAL SERVICES HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 123 MISC BERHAD ANNUAL REPORT 2018 122