MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 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 257 MISC BERHAD ANNUAL REPORT 2018 256 3. REVENUE Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Revenue from contracts with customers Voyage, lightering and other shipping related income 2,994,554 3,208,448 78,740 40,746 Construction contract and marine repair 956,245 1,202,153 - - Non-shipping income 246,092 237,208 - - 4,196,891 4,647,809 78,740 40,746 Revenue from charter Charter income 3,456,976 4,102,101 783,398 994,177 Finance income on lease receivables 1,126,408 1,318,302 35,087 10,844 4,583,384 5,420,403 818,485 1,005,021 Total Revenue 8,780,275 10,068,212 897,225 1,045,767 Non-shipping income mainly represents revenue generated from the operation and maintenance of offshore floating assets, management of operation of ports, marine terminals and marine vessels, provision of marine support services and consulting services for marine matters. Timing of recognition Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Goods and services transferred at a point in time 526,730 504,741 - - Services transferred over time 3,670,161 4,143,068 78,740 40,746 Total 4,196,891 4,647,809 78,740 40,746 Contract balances The following table provides information about receivables, contacts assets and contracts liabilities from contracts with customers. Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Receivables 780,013 630,713 666,949 439,723 Contract assets (Note 23) 221,286 905,214 - - Contract liabilities (Note 23) (2,406) (8,917) - - 998,893 1,527,010 666,949 439,723 Amount due from customers on contracts primarily relates to the Group's rights to consideration for work completed but not billed at the reporting date. Amount due from customers on contracts are transferred to receivables when rights become unconditional. Amount due to customers on contracts primarily relate to the advance consideration received (or an amount of consideration is due) from the customer, for which revenue is recognised over time when the Group progressively satisfies its performance obligation. 3. REVENUE (CONT'D.) Contract balances (cont'd.) The significant decrease in amount due from customers on contracts in 2018 is the result of projects meeting billing milestones in 2018 and that there are fewer on-going projects at the end of the financial year. Transaction price allocated to the remaining performance obligations The following table shows revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date. The disclosure is only providing information for contracts that have a duration of more than one year. Under 1 year 1-5 years Total RM'000 RM'000 RM'000 Group Construction contract and marine repair 442,722 337,590 780,312 Other shippping related income 114,010 366,180 480,190 Total 556,732 703,770 1,260,502