INTEGRATED ANNUAL REPORT 2024 44 45 SECTION 5: VALUE WE CREATE www.miscgroup.com MISC BERHAD Key Capitals • 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 INPUTS • 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 • 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) Key Capitals FINANCIAL CAPITAL F PHYSICAL CAPITAL P HUMAN CAPITAL H INTELLECTUAL CAPITAL I SOCIAL & RELATIONSHIP CAPITAL SR NATURAL CAPITAL N ACTIONS TO ENHANCE OUTCOMES • Strengthened cash flow stability through long-term contracts • Implemented prudent management of financial commitments, disciplined capital allocation and responsible investment • Strived to adopt the highest standards of governance and transparency, including Task Force on Climate-related Financial Disclosures • Maintained operational excellence with a highly available and utilised fleet • Expanded decarbonisation efforts to meet climate goals • Continued portfolio diversification to manage market volatility • Facilitated comprehensive retention programmes, including employee engagement activities, immediate recognition and flexible work arrangements • Strengthened safety culture through Generative HSSE Culture programmes • Promoted continuous learning to build future-ready capabilities and a culture of innovation • Rejuvenated the ALAM campus to provide students with a conducive learning environment and to foster academic excellence • Continued to cultivate young talents and develop future leaders by providing scholarships in maritime education • Actively engaged employees in various volunteering programmes to positively contribute to communities where we operate • Advanced new energy solutions through our NED division in collaboration with business units across the Group • Pursued decarbonisation technologies and leveraged collaborations for technical advancements in new energy solutions • Advanced our decarbonisation efforts in alignment with our MISC 2030 Ambitions, ensuring that our newbuild vessels are equipped with eco-efficient technologies and energy-efficient solutions • Implemented marine biodiversity conservation initiatives • Reduced emissions and hazardous waste through continuous improvement • A majority of our capital is allocated for operating and maintaining our fleet, ongoing project requirements, new CAPEX investments and purchasing new assets • While CAPEX allocations reduce our financial capital in the short term, they build our physical capital base for longer-term growth • Our long-term customer contracts for newbuild and purchased assets ensure secured income streams, thus growing our financial capital into the future • Investment in innovation initiatives to drive operational and organisational efficiencies has reduced our financial capital in the short term but will enhance our intellectual capital in the long term • Our capital mainly consists of our vessel fleet, floating assets, yards and infrastructure. We focus on investments in eco-friendly newbuilds with lower emissions to enhance our natural capital • We are providing customers with an eco-friendly fleet, improved efficiency and safety measures. This enhancement boosts our social and relationship capital • We reduce obsolete physical capital by disposing older assets through green ship recycling initiatives. This positively impacts our natural capital and aligns with energy transition and climate change imperatives for sustainable long-term growth • Our human capital, including skills, capabilities and knowledge, drives our intellectual capital. We invest our financial capital in human capital through talent development programmes and strategic human capital management aligned with our business plans • The short-term reduction of our financial capital to sustain our human capital enables us to strengthen the capabilities of our workforce to respond to client needs and exceed customer expectations, thus building our social and relationship capital in the long run TRADE-OFFS • We invest financial capital in stakeholder engagements conducted by our employees, which impact our human capital through the manhours spent. The expenses associated with these engagements reduce our short-term financial capital. However, in the long term, they enable the growth of our social and relationship capital, ensure compliance with legal requirements, pave the way for sustainable future growth and maintain our industry reputation • We undertake industry collaborations, focusing on lower-carbon emissions vessels and developing new energy solutions • Our community-based environmental programmes positively impact our natural capital • The growth of our social and relationship capital ultimately contributes to increasing our financial capital, as we maintain and expand our customer base • We invest financial capital to drive our intellectual capital by rejuvenating our fleet with the latest technologies, which improves our natural capital through a lower-carbon emissions fleet and enhances our human capital through new skills, while boosting our social and relationship capital from improved customer satisfaction • In the short term, our financial capital is reduced with investments in technical solutions for floating assets, new technologies for port management, vessel inspections and yard operations. In the long run, these investments will boost our intellectual capital across our maritime value chain • Our physical capital’s emissions and waste have a negative impact on our natural capital. To improve our natural capital in line with energy transition imperatives, climate change and industry decarbonisation, we have refined our MISC 2030 Ambition and strengthened our commitment to achieving Net-Zero GHG emissions, aligning with the MISC 2050 Vision • Efforts towards improving our natural capital will reduce our financial capital in the shorter term and impact on our human, intellectual and physical capitals. Improvement of natural capital will heighten our social and relationship capital, as MISC commits to a sustainable future • RM21.0 million invested in ALAM cadet sponsorships • Maritime education scholarships to promote youth development • 346 employees volunteered in the HOTO programme since 2021 • 56 years of experience in the maritime industry • Collaborations on new energy solutions and decarbonisation initiatives • 56,084,855 GJ of energy consumption • Reliance on natural resources, such as fuel, water and land 2024 2023 Revenue (RM billion) 13.2 14.3 Profit After Tax (RM billion) 1.2 2.0 Cash Flows from Operating Activities (RM billion) 4.3 5.7 Dividend Payout (sen per share) 36 36 Moody’s Ratings Baa2 (stable) Baa2 (stable) S&P Global Ratings BBB+ (stable) BBB+ (stable) 2024 2023 LNG Transported Globally (%) 5 6 Estimated Crude and Petroleum Products Transported Globally (MT) 171 134 Vessel Availability (%) >99 >99 Vessel Utilisation (%) >96 >99 Offshore Floaters’ Uptime Performance (%) >97 >90 OUTPUTS/OUTCOMES 2024 2023 Number of ALAM Cadets Sponsored 732 829 Number of Sponsored Students Under Maritime Education Scholarships 22 13 Number of Families Within the Community Engaged in the HOTO Programme 10 13 2024 2023 Number of Accolades Received 19 13 Dual-fuel Vessels Owned 9 8 Ammonia Dual-fuel Aframax Project Awards 2 0 2024 2023 Major Oil Spill 0 0 Scope 1 and 2 GHG Emissions (million tCO₂e) ** 3.85 4.16 Fleet Average Co₂e Intensity Reduction Compared to 2008 (%) 32% 24% Hazardous Waste Recycled, Reused or Recovered (%) 99.7% 99.9% ** Scope 1 and 2 data for 2023 have been restated following a third-party GHG verification exercise 2024 2023 Employee Attrition Rate (%)* 10 15 Number of Employees Completed Training* 5,556 6,672 Average Total Hours of Training per Employee (hours/person)* 38 27 Lost Time Injury Frequency (LTIF) 0.05 0.09 Total Recordable Case Frequency (TRCF) 0.23 0.31 * Shore employees only
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