INTEGRATED ANNUAL REPORT 2024 20 21 SECTION 3: KEY MESSAGES www.miscgroup.com MISC BERHAD President & Group Chief Executive Officer’s Message RESILIENT PERFORMANCE AMIDST MARKET CHALLENGES In a year marked by global volatility and evolving market dynamics, MISC maintained strategic discipline, effectively managing challenges while staying focused on sustainable growth and long-term value creation. For the financial year 2024, we recorded a revenue of RM13,237.5 million compared to RM14,271.7 million the year before. Our profit before tax (PBT) stood at RM1,283.5 million, down from RM2,093.7 million, primarily due to headwinds in our GAS Business and Offshore segments. The GAS Business segment was impacted by lower spot rates, driven by increased vessel availability from new LNGC deliveries into the LNG shipping market and delayed liquefaction projects, leading to impairments that affected financial performance. Simultaneously, the Offshore segment experienced reduced construction margins and project close-out costs as major projects neared completion. However, excluding impairments, our adjusted PBT remained largely consistent with the previous year’s adjusted PBT. Despite these challenges, our Petroleum & Products segment delivered commendable results and the turnaround of the Marine & Heavy Engineering segment (MHB) further supported our financial performance. Cash flows from operations (CFO) remained strong at RM4,276.9 million. Adjusting for non-recurring factors, such as one-off prepayments for FSUs received in 2023, our operational cash flow for 2024 continued to reflect the Group’s financial resilience. President & Group Chief Executive Officer’s Message AET achieved a notable milestone by securing long-term charters for the world’s first two ammonia dual-fuel Aframaxes. #deliveringProgress TOWARDS OUR MISC 2030 AMBITION In 2024, we accelerated the execution of our re-energised strategy, the MISC 2030 Ambition. In a bold shift from intentions to execution, this sharpened direction embodies delivering energy more efficiently and with lower emissions. Our efforts remained focused on strengthening our core businesses, expanding into profitable new energy ventures and accelerating decarbonisation initiatives. With a well-diversified portfolio, our core businesses provide a solid foundation for long-term growth, while unlocking opportunities in emerging energy solutions. A key milestone in 2024 was the successful delivery of FPSO Marechal Duque de Caxias, which achieved first oil on 30 October 2024 and Final Acceptance on 2 November 2024, following a successful 72-hour performance test. This achievement exemplifies our technical expertise and strengthens our standing in the global deepwater FPSO sector. AET delivered Eagle Veracruz, its third LNG dual-fuel VLCC, to Shell Tankers (Singapore) Private Limited, demonstrating our commitment to more efficient, lower-emission shipping solutions. Significant strides were made in rejuvenating our LNGC fleet, a proactive move to strengthen our GAS Business segment, improve cash flow and advance our decarbonisation strategy. We secured long-term TCPs with QatarEnergy for three newbuild LNGCs scheduled for delivery in 2026 and 2027. Additionally, we signed long-term TCPs with PETRONAS LNG Ltd. (PLL) for two newbuild LNGCs scheduled for delivery in 2027, further strengthening our LNG shipping portfolio. As part of our fleet rejuvenation strategy, we also monetised three LNGCs that completed their long-term charters to reinvest in modern and energy-efficient vessels. Furthermore, we formalised the New Energy and Decarbonisation (NED) division to spearhead strategic investments in carbon abatement and new energy solutions. NED, together with our business units within the Group, will drive the development and commercialisation of new energy initiatives integral to the future of maritime energy solutions, emissions reduction and alignment with our sustainability goals. Dear Stakeholders, 2024 was a pivotal year for MISC, one defined by strategic progress amidst an increasingly complex global environment. The year unfolded against a backdrop of geopolitical and economic uncertainties, from trade flow disruptions due to global conflicts to heightened regulatory demands reshaping the maritime sector. Despite these challenges, MISC remained resilient, responding with agility and a re-energised strategic focus to advance our growth trajectory and deliver value to our stakeholders. Since assuming the role of President & Group CEO in August 2024, I have had the privilege of witnessing the unwavering dedication of our people firsthand. Their commitment continues to drive our achievements, enabling us to navigate uncertainty with confidence and purpose.
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