MISC Annual Report 2018

OUR BRANDS & BUSINESSES Each of the brands in the MISC Group of Companies carries heritage and identity. Together, all of us are committed to the same aspiration of moving energy to build a better world. Incorporated in 1968, MISC has evolved from a shipping line to a successful and fully integrated energy shipping and maritime conglomerate that continues to grow on the solid foundation upon which it was built. MISC was listed on the Main Board of Bursa Malaysia Securities Berhad (Bursa Malaysia) in 1987. The company became part of the PETRONAS Group of Companies in 1997. MISC is headquartered in Kuala Lumpur with strategic offices in various parts of the world including Yokohama, London and Rio de Janeiro. Established in 1973 as the Malaysian Shipyard & Engineering Sdn. Bhd. (MSE), the company became a subsidiary of MISC in 2004. MSE was renamed as Malaysia Marine & Heavy Engineering Sdn. Bhd. (MMHE) and became a wholly-owned subsidiary of MISC in 2006. MMHE was listed on the Bursa Malaysia as the Malaysia Marine & Heavy Engineering Holdings Berhad (MHB) in 2010. MHB is headquartered in Kuala Lumpur and operates one of the largest offshore and marine engineering facilities in the region with 1,974 hectares in Pasir Gudang, Johor. Established in 1994 as American Eagle Tankers, the company was acquired in 2003 by MISC and was relaunched in 2007 as AET. As the petroleum and product shipping arm of MISC, AET owns and operates a full suite of crude and clean product tankers. AET is headquartered in Singapore and it has regional offices in Houston, Kuala Lumpur and London, together with a lightering base in Galveston, Texas. Eaglestar was formed in 2017 as an integration of the ship management units within MISC. Eaglestar delivers a comprehensive suite of ship management solutions ranging from fleet management and operations, to crew management and manning services, dry-docking management as well as project management services for newbuild construction and conversion projects. Eaglestar is headquartered in Kuala Lumpur with strategic business and manning presence all over the world. PETRONAS Maritime Services Sdn. Bhd. (PMSSB) was established in 1992 and became part of MISC in 2015. PMSSB was rebranded in 2017 as MISC Maritime Services Sdn. Bhd. also known as MMS. MMS has been operating and managing PETRONAS ports and terminals at Kertih, Melaka, Bintulu and Miri since 1994. MMS also provides logistics support services to PETRONAS Carigali at Kemaman and Labuan Supply Base. In 1976, MATES (Maritime Training and Education for Seamen) Foundation was founded by three key members, namely MISC, International Shipping Carriers (Hong Kong) and Ministry of Transport, Malaysia. MATES was upgraded to academy status in 1981 and was renamed as the Malaysian Maritime Academy, also known as Akademi Laut Malaysia (ALAM). As a maritime education and training facility, ALAM is operated by the Malaysian Maritime Academy Sdn. Bhd. (MMASB), a wholly-owned subsidiary of MISC. Its 74-acre campus is located in Melaka. OUR BUSINESSES C C K K K C C Excellent asset performance with uptime of over 98% One of the LARGEST dry docks in Southeast Asia in terms of cubic capacity The only yard in Malaysia capable of constructing complex offshore mega structures and marine facilities High vessel availability rate of over 99% Consistently achieved excellent results throughout the years in HSE performance and Port State Control (PSC) performance Proven experience with over 11.2 million safe man-hours with zero Lost Time Injury (LTI) since 1999 vessels of up to 350,000 deadweight tonnage Successfully handled over 45,000 Consistently ranked amongst the TOP10% of the world’s Maritime Education & Training (MET) Institutions by DNV-GL seafearers occupying nearly all key positions in the merchant marine sector in Malaysia both at sea and shore since 1976 Trained over 13,000 The only tanker company globally to possess Modular Capture Vessels (MCV) capabilities One of the world’s TOP10 crude tanker owners One of the world’s LARGEST FPSO/FSO owner-operators One of the world’s LARGEST LNG carrier owner- operators voyages made since 1983 Over 9,400 LNG ASSET SOLUTIONS Delivers Liquefied Natural Gas (LNG) across the globe with decades of proven experience as well as a distinguished reputation for overall operational excellence, reliability and on-time cargo deliveries PETROLEUM & PRODUCT SHIPPING Provides safe, high quality and comprehensive ocean transportation and specialist petroleum services to the world’s largest oil companies, trading houses and refiners OFFSHORE Delivers complete, comprehensive and innovative solutions from design to operations, catering for marginal, conventional and deepwater field developments with an excellent production and operations performance track record for all its facilities MARINE & HEAVY ENGINEERING Specialises in offshore construction, conversion and marine repair. Owns and operates one of the largest marine and heavy engineering facilities in the region INTEGRATED MARINE SERVICES Provides a comprehensive, reliable and efficient ship management services. Operates and maintains a modern and diversified fleet of vessels, supported by a team of highly skilled, competent and dedicated professionals PORT & TERMINAL SERVICES Delivers world-class maritime services and expertise in marine assurance and compliance as well as port and terminal operations and management to the major oil and gas companies including the PETRONAS Group MARITIME EDUCATION & TRAINING Nurtures the talent of future maritime professionals and supports the industry’s growing requirement for professionally trained seafarers by providing the full spectrum of maritime training and education as well as offshore and other courses Core Business C Key Enabler K 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 23 MISC BERHAD ANNUAL REPORT 2018 22