INTEGRATED ANNUAL REPORT 2024 42 43 SECTION 5: VALUE WE CREATE www.miscgroup.com MISC BERHAD Value Creation Business Model INPUT OUR KEY CAPITALS ... ... DRIVEN BY OUR STRATEGIES AND AMBITIONS ... VISION MISSION Financial Capital • RM60.4 billion in total assets • RM37.6 billion in shareholders’ equity • RM6.7 billion in cash and cash equivalents • RM15.5 billion in debt F • Revenue of RM13.2 billion • Profit after tax of RM1.2 billion • CFO of RM4.3 billion • Dividend payout of 36 sen per share • Credit rating of BBB+ at S&P Global Ratings, Baa2 at Moody’s Physical Capital • 27 LNGCs • 6 VLECs • 1 LBV • 2 FSUs • 58 Petroleum and product tankers • 8 LSVs • 12 Floating assets • Marine and heavy engineering facilities • Maritime training facility P • Transported 5% of global LNG • Transported approximately 171 million tonnes of crude and petroleum products globally • Above 99% for vessel availability • Above 96% for vessel utilisation • Above 97% for offshore floaters’ uptime Human Capital • 9,536 total employees from 46 nationalities • 23% of employees are women (shore employees only) • RM47.4 million invested in capacity building for employees • 544 total new hires (shore employees only) H • A total average of 38 training hours per shore employee • LTIF at 0.05 • TRCF at 0.23 Value Creation Business Model ... IMPLEMENTED THROUGH OUR BUSINESSES ... Social & Relationship Capital • RM21.0 million invested in ALAM cadet sponsorships • Maritime education scholarships to promote youth development • 346 employees have volunteered in the Heart of The Ocean (HOTO) programme since 2021 SR • Sponsored 732 cadets at ALAM • Sponsored 22 students under maritime education scholarships • Engaged 10 families within the community in the HOTO programme Intellectual Capital • 56 years of experience in the maritime industry • Collaborations on new energy solutions and decarbonisation initiatives I • 19 accolades received • 9 dual-fuel vessels owned • 2 ammonia dual-fuel Aframax project awards Natural Capital • 56,084,855 gigajoules (GJ) of energy consumption • Reliance on natural resources, such as fuel, water and land N • Recorded 3.85 million tCO₂e of Scope 1 and 2 GHG emissions • Achieved a 32% reduction in our fleet average CO₂e intensity compared to 2008 • Recycled, reused or recovered 99.7% of hazardous waste • Recorded zero major oil spills ... TO CREATE VALUE FOR OUR STAKEHOLDERS. OUTPUTS/OUTCOMES STAKEHOLDERS SDGs RISKS AND MITIGATION STRATEGIES Please refer to pages 65 to 69 for more information. MATERIAL MATTERS Please refer to pages 60 to 64 for more information. OPERATING ENVIRONMENT Please refer to pages 52 to 59 for more information. BUSINESS REVIEW Please refer to pages 78 to 97 for more information. BUSINESS OPERATIONS 6 MARITIME EDUCATION & TRAINING Rebuild and elevate the academy to University College status 1 GAS ASSETS & SOLUTIONS Focus on selective projects, expand gas asset classes and enhance the fleet with energy-efficient LNGCs 2 PETROLEUM & PRODUCTS Strengthen income streams and explore low-carbon solutions through collaborations/partnerships 3 OFFSHORE Project delivery of FPSO Marechal Duque de Caxias and pursue targeted market opportunities 4 MARINE & HEAVY ENGINEERING Enhance project delivery, diversify portfolios and establish international presence 5 MARINE SERVICES Elevate service excellence, grow market share and diversify revenue streams For more information, please refer to Delivering Our Strategy and Its Progress on page 70. Business Model Transformation Strategic Partnerships and Client Positioning Organisational Culture and Behaviour MISC 2030 AMBITION #deliveringProgress Partnership Project Delivery Operational Excellence Sustainability Our Winning Formula HSSE Simplification Talent Culture Our Foundation 25% CFO from New Energy Solutions ** Compared to 2008 baseline * Compared to 2022 baseline (approximately USD1.2 billion) 50% CFO* Improvements 50% GHG Emissions Reduction in Shipping Operations** MISC ENTERPRISE STRATEGY FY2025 - FY2030 • Energy Efficiency • Abatement Technology • Future Fuels • Invest in Dual-Fuel Assets • Responsible Supply Chain Programme Decarbonisation • Portfolio Rejuvenation and Growth • Maximise Asset Availability and Utilisation • Superior Project Execution • Asset Monetisation • Cost Optimisation Resilient Core • Focus on Carbon, Offshore Wind and Future Fuels Value Chains • Strategic Partnerships to Monetise New Solutions • Integrated Value Offering Profitable New Energy Business Short to Medium Term Short Term Medium to Long Term MISC 2050 VISION MISC 2050 VISION Renewable Energy Value Chain The building block to manage climate change challenges with the maritime sector playing a key role Waste-To-Value Chain Critical in tackling resource scarcity and emissions as well as repurposing maritime assets MISC 2024 STRATEGY • Selective monetisation of assets to unlock value • Fleet rejuvenation for the GAS Business segment and selective investments in dual-fuel assets for the Petroleum & Products segment • Investing in new energy solutions • Collaborating with strategic partners to pursue asset growth and venture into new energy solutions • Shifting focus to high-value clients • Embedding Generative HSSE Culture across the Group • Embarking on a transformation journey focusing on enterprise culture to future-proof MISC
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