MISC Annual Report 2019

FINANCIAL STATEMENTS Directors' Report 234 Statement by Directors 240 Statutory Declaration 240 Income Statements 241 Statements of Comprehensive Income 242 Statements of Financial Position 243 Consolidated Statements of Changes in Equity 246 Statements of Changes in Equity 248 Statements of Cash Flows 249 Notes to the Financial Statements 253 Independent Auditors' Report 374 ADDITIONAL INFORMATION MISC Group Structure 384 Properties Owned by MISC Berhad & Its Subsidiaries 386 List of Vessels & Assets 388 Statistics on Shareholdings 395 List of Abbreviations 399 ANNUAL GENERAL MEETING Notice of Annual General Meeting 404 Form of Proxy OUR BUSINESS PERFORMANCE Management Discussion & Analysis LNG Asset Solutions 88 Petroleum & Product Shipping 94 Offshore Business 102 Marine & Heavy Engineering 108 Integrated Marine Services 114 Port Management & Maritime Services 120 Maritime Education & Training 124 People Development 128 Operating Safely and Sustainably 136 Operating Responsibly 150 2019 Key Corporate Events & Achievements 158 OUR SUSTAINABILITY Anchoring Sustainability@MISC 164 OUR LEADERS Our Board at a Glance 172 Profiles of the Board of Directors 173 Profiles of the Management Committee 182 OUR GOVERNANCE Corporate Governance Overview Statement 190 Nomination & Remuneration Committee Report 204 Board Audit & Risk Committee Report 212 Statement on Risk Management & Internal Control 220 Statement of Directors’ Responsibility 230 Additional Compliance Information 231 INTRODUCTION About This Report 06 About MISC 10 Corporate Information 11 THE YEAR IN REVIEW Chairman's Message 14 President/Group CEO's Review 18 Key Highlights of 2019 26 OUR BUSINESS Special Focus: The Shipping Industry and Business 30 MISC’s History and Journey 36 Our Brands and Businesses 40 Our Core Businesses and Activities 42 Moving Energy to Build a Better World 46 Where We Operate 48 OUR VALUE CREATION STORY Overview 52 Our Strategic Focus 54 Our Operating Environment 56 Risks and Opportunities 60 How We Create Value 64 Delivering Our Strategy 66 Stakeholder Engagement 72 OUR FINANCIAL PERFORMANCE Group Financial Review 78 Financial Calendar 83 Five-Year Group Financial Performance 84 inside what’s M I S C B E R H A D A N N U A L R E P O R T 2 0 1 9 MISC is one of the founding members of Getting to Zero Coalition #whatyoudontknow