MISC Annual Report 2019

67 66 OUR VALUE CREATION STORY MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 LNG Asset Solutions • Grow shipping business including third party business portfolio • Develop non-conventional LNG solutions to broaden our revenue sources Petroleum & Product Shipping • Secure more time charters for conventional fleet • Expand niche market assets such as shuttle tankers with time charters Offshore Business • Explore acquisition opportunities selectively arising from asset divestments by oil and gas players globally • Pursue organic growth and expand international footprint Marine & Heavy Engineering • Develop engineering-related solutions and larger recurring income base to diversify revenue and reduce the impact on cyclicality of the business • Manage cost and process efficiency Shareholders • Broaden engagement activities to give greater visibility to investors STRATEGIC PRIORITIES Delivering Our Strategy To drive sustainable value for our shareholders • Project and financial performance • Risk management • Values and governance STRATEGIC PRIORITIES • Secured long-term charter contract with a third party, SeaRiver Maritime LLC (a subsidiary of ExxonMobil) for the provision of two LNG carriers • Secured long-term charter contract via a partnership with NYK and Mitsubishi Corporation for the provision of two LNG carriers • Secured a time charter party with PETRONAS in collaboration with Avenir LNG to provide an LNG bunker vessel • Majority of the fleet is chartered out on long-term charters • Secured five and renewed two long-term VLCC time charter contracts, which resulted in secured time charter contracts for all VLCCs • Scaled back its chemical fleet through the sale of all seven A-class and redelivery of two L-class vessels which were mainly on spot charters • Secured long-term charter contracts for three specialised DPSTs with Shell • Secured another three contracts for similar-size DPSTs with Petrobras in early 2020 • With seven DPSTs that are currently under construction, this will bring the total DPST fleet to 17 from four that are currently in operations • Remained active in exploring potential acquisition opportunities globally • Pursued several floater opportunities in the Asia Pacific and Middle East region • Beyond Asia Pacific and Middle East, Offshore Business has prequalified to participate in tenders from Petrobras and will continue to actively source for opportunities in Brazil, in line with its business growth objectives in the Atlantic Basin • Secured an EPCIC contract from PCSB for the Kasawari Gas Development project • Secured Bergading Central Processing Platform-Mercury Removal Unit (CPP-MRU) integration project from HESS • Undertake the EPCIC for Bekok oil project from PCSB • Awarded the Master Service Agreement for Integrated Turnaround Main Mechanical & Maintenance Static from PETRONAS for a period of five years • Maintenance of furnace from Idemitsu • PETRONAS mechanical rotating turnaround maintenance • Reinforcing internal control for process improvement by conducting project management assurance audit • Strengthening project planning to facilitate tracking on project progress and expedite identification of potential risks to avoid operation setbacks • Organised Investors and Analyst Maritime Day at ALAM, Melaka to promote the sustainability strategy of MISC and the opportunity to showcase our assets/business segments that contribute to MISC’s business • Organised more analyst/investor engagement sessions with President/Group CEO MATERIAL MATTERS PILLAR/KEY FOCUS AREA 2019 KEY ACHIEVEMENTS REFERENCE TO OTHER SECTIONS UNSDG The MISC2020 strategy together with the MISC sustainability strategy which comprises the identified sustainability pillars continue to act as our compass for the Group as we steer towards greater heights. The progress of each pillars/key focus areas is illustrated under the Strategic Priorities as follows: Stakeholder Engagement page 72 LNG Asset Solutions page 88 Petroleum & Product Shipping page 94 Offshore Business page 102 Marine & Heavy Engineering page 108