MISC Annual Report 2019

LNG carriers allow natural gas to be transported in liquid state, making it feasible to be transported across oceans without pipelines. The containment systems on board the vessels are capable of storing the natural gas at below the boiling point of -162° Celsius. At this temperature, the gas turns to liquid, occupying a volume 600 times smaller. MISC’s fleet of LNG carriers consist of two types of containment systems which are known as membrane and moss types. The membrane-type system is more space-efficient and is able to have higher capacity than a moss-type vessel of the same dimension. A moss-type vessel has self-supporting spherical tanks making it more robust and resistant to sloshing. It provides a higher degree of operational flexibility for worldwide trading capability including the ability to load cargoes at a floating liquefied natural gas (FLNG) unit. An FSU is a flexible LNG storage solution which is an alternative to land-based facilities. MEMBRANE-TYPE LNG CARRIER 24 VESSELS 5 VESSELS 2 VESSELS MOSS-TYPE LNG CARRIER FLOATING STORAGE UNIT Tanker vessel with a capacity of approximately 2 million barrels of crude oil. Used to transport crude oil over long distances in inter-regional trade. Tanker vessel with a capacity of approximately 1 million barrels of crude oil. Used to ship crude oil and has the flexibility to do longer haul cargo as well as shorter regional trades. Tanker vessel with a capacity of approximately 0.7 million barrels of crude oil. Used to carry crude oil or dirty products such as fuel oil in mainly regional trades. VERY LARGE CRUDE CARRIER (VLCC) SUEZMAX TANKER AFRAMAX TANKER # DPST possesses dynamic positioning technology to carry crude oil from offshore production facilities to the shore for storage or distribution. DYNAMIC POSITIONING SHUTTLE TANKER (DPST) Transports mooring equipment and crew to conduct lightering operations. LIGHTERING SUPPORT VESSEL (LSV) 14 VESSELS 6 VESSELS 34 VESSELS Unique Aframax-sized vessel that combines FPSO and dynamic positioning technology. The MCV forms part of an innovative marine system solution designed to respond to a subsea well control incident. Includes mid-range (MR) and long-range 2 (LR2) tanker vessels with capacity of approximately 0.3 million barrels and 0.7 million barrels respectively. Used to ship refined petroleum products over both long haul and short haul trades. Used to ship a variety of chemicals and vegetable oils primarily in both inter and intra- regional trades. MODULAR CAPTURE VESSEL (MCV) CLEAN PRODUCT TANKER CHEMICAL TANKER 4 VESSELS 2 VESSELS 5 VESSELS 6 VESSELS 10 VESSELS Our Core Businesses and Activities LNG ASSET SOLUTIONS CARGOES CARRIED* • LNG from LNG liquefaction terminals/ floating facilities HUMAN CAPITAL SERVICES PERFORMED • Transportation of LNG • New LNG asset-based solutions • Technological solutions for FSU PHYSICAL CAPITAL ACTIVITIES • Transport LNG from LNG liquefaction terminals/floating facilities to customers • Develop new LNG based asset solutions by conducting pre-engineering study on L2P solutions and continuous engagement with our partners to develop and market the proposed solutions • Provide technological solutions for FSU and customised, non-conventional LNG solutions for clients CUSTOMERS • PETRONAS Group • Energy majors • Energy traders REVENUE STRUCTURE • Revenue from time charter contracts with customers COST STRUCTURE • Operational costs such as employee/crew costs, repair and maintenance, materials and supplies as well as professional and purchased services and depreciation * Cargoes belong to customer ** Including seafarers under Eaglestar * Cargoes belong to customer ** Including seafarers under Eaglestar 1,901 Employees** PETROLEUM & PRODUCT SHIPPING CARGOES CARRIED* • Crude oil from onshore terminals/ ports or offshore FPS • Clean petroleum products from petroleum refineries • Chemicals from petrochemical plants HUMAN CAPITAL SERVICES PERFORMED Conventional services • Transportation of crude oil, petroleum products, chemicals and vegetable oils Specialised services • Operator of DPSTs in the North Sea and Brazil • Operator of lightering services in the US Gulf and Latin America • Operator of MCVs PHYSICAL CAPITAL ACTIVITIES • Transport crude oil, petroleum products, chemicals and vegetable oils • Deliver specialist petroleum services such as lightering services • Provide and operate DPSTs • Provide and operate MCVs CUSTOMERS • Energy majors • Refiners • NOCs • Energy traders REVENUE STRUCTURE • Revenue from time charter contracts, voyage charter contracts, lightering and other shipping related income such as contract of affreightment COST STRUCTURE • Operational costs such as bunker (marine fuel), employee/ crew costs, repair and maintenance, materials and supplies, depreciation as well as professional and purchased services 3,341 Employees** • 29 LNG carriers • 2 FSUs • 4 LNG carriers under construction • 81 vessels • 13 DPSTs under construction (includes three DPSTs awarded in Q1 FY2020) # includes one panamax tanker and three LR2 tankers currently trading crude oil 43 42 MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 OUR BUSINESS