MISC Annual Report 2019

Key Developments Eaglestar is committed to promoting career opportunities at sea for women which reflects our support towards the UNSDG 5: Gender Equality. This is done through the cadet sponsorship programme from which we continue to encourage their career development as we prepare them to take up leadership roles. By 2022 we expect to have at least four female seafarers taking up the leadership roles of Master and Chief Engineer within Eaglestar. In line with our support for UNSDG 10: Reduced Inequalities, Eaglestar consciously ensure that the workforce carries a diverse set of quality seafarers. During the year, Eaglestar conducted various technical, leadership and cultural beliefs trainings towards cultivating an engaged and skilled workforce that is adaptable and progressive to better serve our global customers. In 2019, Eaglestar had coordinated various HSSE awareness programmes aimed at increasing awareness on ocean health as well as promoting an environmentally conscious culture among our employees. This is aligned with UNSDG 14 : Life below Water which includes : Our decades of experience and expertise in managing various types of vessels with different levels of complexities will also position Eaglestar as a credible service provider in the areas of shipmanagement, technical management and crew management services to external customers. This will enable us to promote business growth beyond MISC and we are already actively participating in tenders to provide shipmanagement services to other reputable shipowners and operators. Furthermore, with the rising demand in the use of LNG as one of the cleanest marine fuel alternatives, we see the increasing opportunities in the areas of LNG bunkering and operating LNG dual-fuel vessels. Eaglestar’s operational experience in managing LNG carriers for more than three decades gives us the competitive edge to secure the management of more similar type of vessels, especially given that it is a new technology in the market of limited number of shipmanagement companies that possess similar competencies. New technology, digitisation and automation will also greatly influence the future of the maritime industry and therefore it is critical to adopt a progressive mindset and proactively explore the benefits of making the best use of technology and innovation. We at Eaglestar believe that technology will open various new possibilities, from improving connectivity and network efficiency, to smart technologies in artificial intelligence and automation which will be the game changer in modernising various aspects of our operations. We will continue to leverage on technologies that will positively impact safety, efficiency and environmental performance in modernising the maritime industry. Sustainability Decarbonisation of the shipping sector was one of the key topics discussed during the Global Maritime Forum’s Annual Summit which was held in Singapore in October 2019, where leaders across the maritime spectrum including MISC and Eaglestar met to confer on the challenges facing the global shipping industry. In line with the Group’s GHG Reduction Strategy, Eaglestar has implemented measures to reduce greenhouse gas emissions and optimise energy efficiency: Environmental Awareness programme involving 120 Eaglestar employees held at Sekolah Menengah Kebangsaan Subang where the students were given the exposure on efficient water use through fish breeding and pond cleaning, tree planting, the impact of plastic pollution in the ocean, recycling and upcycling. As part of Eaglestar’s Senior Officers’ Management Conference programme, over 140 officers, sea and shore employees contributed towards the conservation works of the Padang Kemunting Turtle Management Centre in Melaka by cleaning the turtle pond, hatching area and 4 km beach area. In support of the International Coastal Cleanup Celebration and to embrace the conservation of marine biodiversity, Eaglestar’s employees were part of the Group’s ‘Beyond the Beach Clean-up’ programme at Bagan Lalang, Selangor. performance, PSC performance as well as improved customer satisfaction and TMSA rating. Most recently, our project management team supervising the construction of the LNG dual-fuel DPST newbuilds has achieved one million manhours with zero LTI. During the 2019 Seatrade Maritime Awards Asia, one of the most prestigious awards for Asia’s maritime industry, Eaglestar was recognised as a top five finalist for the Technical Innovation Award for our environmentally efficient LNG dual-fuel DPSTs currently being built by Samsung Heavy Industries in South Korea for Equinor. On top of this, Eaglestar, in collaboration with AET, was recognised by the Chamber of Shipping of America (CSA) in 2019 for the Annual Environmental Achievement Awards which saw 59 ships receiving this honour with 18 vessels holding this rank for 10 years or more and the CSA Jones F. Devlin Awards for 60 vessels. Eaglestar remains committed to optimising our operational efficiency, ensuring high vessel reliability and availability across the fleet as well as achieving cost efficiencies. Our drive towards operational excellence is reflected in the vessel availability rate of above 99%, surpassing industry benchmarks across all segments of the shipping sector. Furthermore, we uphold the highest standards of HSSE throughout all aspects of our operations and this is evident in the sterling results we have achieved in 2019 in our HSSE Our dynamic workforce at sea and shore are our greatest assets and we are dedicated towards building their capabilities at all levels from cadetship right up to leadership to enhance their competency and proficiency to support various aspects of the business and operations. In collaboration with the ship owning business segments of the Group, Eaglestar supports the efforts in nurturing the talent of future maritime professionals through the cadet sponsorship programme at MISC’s maritime education and training academy, ALAM. On average, 200 students were sponsored to undergo the diploma in Nautical Studies as well as the diploma in Marine Engineering. Upon completing the diploma programmes, they will go on to join Eaglestar’s seafaring workforce onboard the Group’s vessels. Moving Forward The outlook for the shipping industry as a whole over the next few years will continue to be impacted by slowing global economic growth, ongoing trade tensions and various geopolitical risks. Another factor that will likely affect industry players is the stricter compliance towards specific regulatory or legislative requirements. Eaglestar will continue to develop and implement the initiatives to address these challenges, focusing on delivering superior operational performance, cost optimisation and operational efficiencies as well as align our objectives with the aspirations of the Group. Eaglestar’s carbon commitment and GHG reduction strategy from year 2017 Operational Optimisation Technology Optimisation Commercial Optimisation Awareness /Capability Hull and propeller cleaning Improve hull coating Weather routing Awareness, trainings and campaigns Optimise plant/ machinery efficiency Propulsion enhancement devices Voyage planning and speed optimisation Trim optimisation Real time monitoring system Cargo heating optimisation Voyage optimisation Performance monitoring and analysis Acquire vessels with consistently better energy efficiency Improve energy efficiency of vessels operated by the Group Group Carbon Commitment Group GHG Reduction Strategy (2017 to 2020) Energy Efficiency Optimisation Management Discussion & Analysis Integrated Marine Services 119 OUR BUSINESS PERFORMANCE ANNUAL REPORT 2019 118 MISC BERHAD PEOPLE. PASSION. POSSIBILITIES