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 317 MISC BERHAD ANNUAL REPORT 2018 316 34. COMMITMENTS (CONT'D.) (c) Non-cancellable operating lease commitments - Group and Corporation as lessor Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Future minimum rentals receivable: Not later than 1 year 3,033,512 2,830,213 793,501 890,427 Later than 1 year and not later than 5 years 10,340,322 9,291,568 2,497,323 3,527,791 Later than 5 years 11,545,520 11,919,258 5,189,975 7,452,467 24,919,354 24,041,039 8,480,799 11,870,685 Operating lease income represent long-term lease arrangements with related and third parties for charter out of ships and offshore floating assets. 35. CONTINGENT LIABILITIES Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Secured Bank guarantee extended to a third party 392 565 - - Unsecured Performance bond on contract and bank guarantees extended to third parties 204,305 293,799 347 5,329 The Corporation no longer discloses the corporate guarantees given to banks for credit facilities granted to subsidiaries as these would instead be accounted as financial liabilities if considered likely to crystalise. 36. SEGMENT INFORMATION (a) Business segments The operating segments of the Group are as follows: (i) LNG - provision of liquefied natural gas (“LNG”) carrier services; (ii) Petroleum - provision of petroleum tanker and chemical tanker services; (iii) Offshore - own, lease, operation and maintenance of offshore, floating, production and offloading terminals; (iv) Heavy Engineering - marine repair, marine conversion and engineering and construction works; and (v) Others - management of operation of ports and marine terminals, provision of marine support services and consulting services relating to marine matters, provision of ship management services, marine education and training, and other diversified businesses. Transfer prices between business segments are set on an arm's length basis in a manner similar to transactions with third parties. Segment revenue, expenses and results include transfers between business segments. These transfers are eliminated on consolidation.