MISC Annual Report 2019

We have also established a funding strategy and identified efficient business and asset ownership structures. This will be key for opportunities in Brazil, in line with the long-term business growth objectives in the Atlantic Basin which is generating the most sizeable floater opportunities that have potential for long term sustainable income. Moving Forward The outlook going into 2020 continues to be promising as oil majors are expected to stay the course to approve more final investment decisions (FID) for greenfield and brownfield projects. Based on the data extracted from Rystad Energy, potential greenfield oil and gas projects that are expected to be approved in 2020 have increased significantly to 389 projects compared to about 295 projects a year ago. In the FPSO market, Energy Maritime Associates (EMA) is forecasting that 125 new projects involving FPSOs and FSOs are poised to come on stream in the next five years. Moving forward, MISC aims to establish itself through the Offshore Business segment as a credible floater turnkey contractor, owner and operator for deepwater projects on a global scale. As part of MISC’s growth agenda, we will continue to explore potential projects that will serve the Group’s best interests as well as building strategic partnerships and expansion within the domestic and international offshore space which includes the Asia Pacific, the Americas and Africa. Key Achievements in 2019 The challenges that lie before us include standardised newbuild floater concepts employed by the industry players, capacity constraint in shipyards due to an increase in the number of projects awarded in the short timeframe, geopolitical instability and current oil price scenario that is causing the oil majors to be cautious in taking FIDs. The Offshore Business segment will continue to focus on strategic acquisitions particularly in the areas of assets in distress and equity participation while also expanding our footprint through new market expansion. MSOSH Occupational Safety & Health Award 2018 Gold Class I Award : MaMPU1 Gold Class II Award : FSO Orkid Zero LTI since 2013 and on-time delivery with zero delays since 2009 ( FSO Orkid ) Management Discussion & Analysis MISC recorded zero major spills since 2013 #whatyoudontknow The award recognises that these facilities have achieved commendable occupational safety and health performance and shown remarkable improvement in OSH processes through sound Safety and Health Management System. This recognition provides trust and assurance to stakeholders in OBU’s HSSE capability, processes and performance thus creating future business opportunities. Offshore Business 107 106 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019