MISC Annual Report 2019

DIRECTORS’ REPORT DIRECTORS’ REPORT The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Corporation for the financial year ended 31 December 2019. PRINCIPAL ACTIVITIES The principal activities of the Corporation consist of shipowning, ship operating and other activities related to shipping services and operating offshore floating terminals. The principal activities of the subsidiaries, associates and joint arrangements are described in Notes 39, 40 and 41 to the financial statements respectively. The directors deem such information is included in the Directors’ Report by such reference and shall form part of the Directors’ Report. There have been no significant changes in the nature of the principal activities during the financial year. HOLDING COMPANY The immediate and ultimate holding company of the Corporation is Petroliam Nasional Berhad (“PETRONAS”), a company incorporated and domiciled in Malaysia. SUBSIDIARIES The details of the Corporation’s subsidiaries are disclosed in Note 39 to the financial statements. RESULTS Group Corporation RM’000 RM’000 Profit for the year 1,436,267 1,864,414 Attributable to: Equity holders of the Corporation 1,426,355 1,864,414 Non-controlling interests 9,912 – 1,436,267 1,864,414 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements. In the opinion of the directors, the results of the operations of the Group and of the Corporation during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. DIVIDENDS The amount of dividends paid by the Corporation since 31 December 2018 were as follows: In respect of the financial year ended 31 December 2018 as reported in the directors’ report of that year: RM’000 A fourth tax exempt dividend of 9.0 sen per ordinary share, declared on 22 February 2019 and paid on 26 March 2019 401,737 In respect of the financial year ended 31 December 2019: A first tax exempt dividend of 7.0 sen per ordinary share, declared on 24 May 2019 and paid on 25 June 2019 312,462 A second tax exempt dividend of 7.0 sen per ordinary share, declared on 14 August 2019 and paid on 18 September 2019 312,462 A third tax exempt dividend of 7.0 sen per ordinary share, declared on 13 November 2019 and paid on 10 December 2019 312,462 A fourth tax exempt dividend in respect of the financial year ended 31 December 2019 of 9.0 sen per ordinary share amounting to a dividend payable of RM401,737,000 will be paid on 17 March 2020. A special tax exempt dividend in respect of the financial year ended 31 December 2019 of 3.0 sen per ordinary share amounting to a dividend payable of RM133,912,000 will be paid on 17 March 2020. The fourth and special tax exempt dividends are not reflected in the current year’s financial statements. The dividends will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2020. DIRECTORS The names of the directors of the Corporation in office since the beginning of the financial year to the date of this report are: Dato’ Ab. Halim bin Mohyiddin Datuk Nasarudin bin Md Idris Lim Beng Choon Dato’ Sekhar Krishnan Yee Yang Chien Mohd Yusri bin Mohamed Yusof Liza binti Mustapha Dato’ Rozalila binti Abdul Rahman Tengku Muhammad Taufik The names of directors of subsidiaries are set out in their respective subsidiary’s directors’ report and the Board deems such information is included in the Corporation’s Directors’ Report by such reference and shall form part of the Corporation’s Directors’ Report. FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 234 235