MISC Annual Report 2018

PRESIDENT/GROUP CEO’S REVIEW The Petroleum & Product Shipping segment endured adverse market conditions over the year, with charter rates at one point falling so low that the freight earned barely covered operation costs. This throws up concerns about the ability of the segment to generate enough operating cash flow for investments in the future to fund our growth aspirations. Our Offshore Business segment was dealing with projects of increasing technical complexity and a larger financial commitment, in different regions of the world. Ensuring sufficient functional and financial capabilities and capacity to support these pursuits will need careful management if we are to successfully grow into a global player in this field. In our Marine & Heavy Engineering segment, we saw the green shoots of recovery in the upstream oil and gas sector, but this has yet to translate into new and immediate contracts, and the market remained a client’s market. SHAPING THE FUTURE As we leave a chaotic 2018 behind, 2019 has begun with an equally unpredictable footing. The market environment will continue to be volatile with risks of a global economy slowdown and possible recession in key markets. In spite of this, we are ready to step up our presence in the international arena and compete and win against established players in certain sectors. In life, adversities can be opportunities. Although we have faced much headwind that has hampered MISC’s growth in the past years, our ability to invest in growth opportunities despite a difficult 2018 gives me hope that we now have strong tailwinds behind us. I believe the tailwinds that have carried us in 2018 will continue into 2019 and we intend to ride them as far as they will blow. NOTE OF APPRECIATION I wish to express my appreciation to our valued shareholders, customers and partners for their trust and confidence in MISC. My sincere gratitude goes to the Directors of the MISC Berhad Board for their wise counsel in helping us navigate another challenging year and maintain focus on our long-term sustainable future. Your astute insights continue to be an invaluable help to MISC Group. Last but not least, my utmost gratitude goes to the rest of our leadership team and our employees for their hard work, passion and contributions to the future possibilities of MISC. Thank you all for rising above the challenges of our industry, for keeping your heads down, riding through the tough times and never giving up. Thank you for continuing to exhibit a spirit of innovation, excellence and above all, faith in MISC. I am both honoured and humbled to be serving alongside such a talented and hardy group of professionals. Moving forward into 2019, MISC will continue to collaborate across segments and work together. We will seize new opportunities and make incremental, unwavering improvements in our existing business in order to achieve our aspiration to consistently provide better energy related maritime solutions and services. YEE YANG CHIEN President/Group CEO 14 March 2019 In conjunction with MISC’s 50 th anniversary on 6 November 2018, we held an internal photo contest themed “People. Passion. Possibilities. This is MISC”. The internal photo contest garnered creative submissions from our employees across the globe.We are pleased to share the winning photos. Capt. Nitin Goel Eaglestar Chung Woon Ting Eaglestar Emran Kassim MHB Nishante Francis William Eaglestar Vishnu Chundayil Kalarikkal Eaglestar 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 91 MISC BERHAD ANNUAL REPORT 2018 90