MISC Annual Report 2019

Group Financial Review Financial Calendar FINANCIAL PERIOD First Quarter 24 May 2019 Second Quarter 14 August 2019 Third Quarter 13 November 2019 Fourth Quarter 18 February 2020 1 January 2019 to 31 December 2019 ANNOUNCEMENTS OF FINANCIAL RESULTS Financial Results ANNOUNCEMENT OF TAX EXEMPT DIVIDENDS First Dividend Second Dividend Third Dividend Fourth Dividend Special Dividend Announcement 24 May 2019 Paid 25 June 2019 Announcement 14 August 2019 Paid 18 September 2019 Announcement 13 November 2019 Paid 10 December 2019 Announcement 18 February 2020 Paid 17 March 2020 Announcement 18 February 2020 Paid 17 March 2020 1 2 3 4 Details of the Group’s financial position as at 31 December 2019 can be found on pages 243 to 245 of this Annual Report. Financial Position Total Assets Group total assets as at 31 December 2019 of RM51,863.8 million was 0.4% lower than RM52,065.3 million as at 31 December 2018. The decrease in Group total assets were mainly due to amortisation of finance lease receivables coupled with the disposals and impairment loss on ships and offshore floating assets during the year. Total Liabilities Group total liabilities of RM16,110.1 million as at 31 December 2019 was 2.6% higher than RM15,701.2 million as at 31 December 2018 mainly due to increase in interest-bearing loans and borrowings. Shareholders’ Equity Shareholders’ equity of RM34,727.2 million as at 31 December 2019 was 1.8% lower than RM35,351.1 million as at 31 December 2018. The decrease in shareholders’ equity was mainly due to currency translation loss as Malaysian Ringgit (RM) strengthened against the United States Dollar (USD) during the year and total dividend paid by the Corporation of RM1,339.1 million in FY2019. Net Debt/Equity Ratio The Group’s net debt-to-equity ratio of 0.17 as at 31 December 2019 was lower compared to 0.20 as at 31 December 2018 following increase in total cash, deposits and bank balances during the year under review. Cash Flow Group’s cash generated from operating activities increased by 36% or RM1,479.9 million to RM5,579.1 million in the current year from RM4,099.2 million in the previous financial year. 25% of the increase in the cash generated from operating activities is mainly from higher net inflows in all the business segments whereas the additional 11% is coming from cash flow reclasification arising from new accounting standard requirements. The Group’s healthy cash position is supported by the steady cash flow generated from the Offshore and LNG segments’ long-term portfolio of contracts. Capital Expenditure The Group’s approved and contracted committed capital expenditure as at the end of FY2019 stood at RM4,228.5 million. Based on our strong cash position as at the end of FY2019 and existing funding facilities, the Group should be able to fund committed capital expenditure and planned growth plans. Details of the Group’s cash flows for the year ended 31 December 2019 can be found on pages 249 to 252 of this Annual Report. Details of the Group’s capital commitments as at 31 December 2019 can be found on page 336 of this Annual Report. 83 82 OUR FINANCIAL PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019