INTEGRATED ANNUAL REPORT 2024 78 79 SECTION 7: BUSINESS REVIEW www.miscgroup.com MISC BERHAD Gas Assets & Solutions Gas Assets & Solutions brings decades of expertise in LNG and non-conventional gas asset solutions, and is also known for reliability, operational excellence and on-time deliveries. We provide LNG shipping, ethane transportation and FSUs. Additionally, we are well positioned to offer a broader range of LNG asset-based solutions, including Floating Storage Regasification Units (FSRUs) and Floating Storage Regasification Powerplants (FSRPs), to meet evolving market demands. To support the global energy transition, we are exploring liquefied carbon dioxide (LCO₂) carriers in collaboration with the NED division. We are committed to efficiency and sustainability, as we uphold the highest HSSE standards while delivering reliable and progressive solutions for the evolving LNG market. WHAT WE DO HAZRIN HASAN Vice President, Gas Assets & Solutions In 2024, Gas Assets & Solutions operated in a dynamic landscape shaped by energy security concerns, financial volatility, environmental pressures and rapid technological advancements. Industry-wise, the influx of newbuild vessels intensified competition within the LNG market, where supply growth remained limited due to delays in new liquefaction projects. Together, this led to challenges in securing new contracts for our older vessels approaching the end of their long-term charters. As a result, we had to navigate lower spot market rates, reduced earning days and lower vessel utilisation. These factors and higher provision for impairments impacted our financial performance in 2024. Despite these challenges, we remained resilient and agile, focusing on our ongoing fleet rejuvenation efforts to re-energise our business. This year, we made good progress in the renewal of our fleet by securing five long-term time charters, comprising two with PLL and three with QatarEnergy, for modern and eco-efficient LNGCs. These new vessels, scheduled for deliveries in 2026-2027, are expected to contribute to revenue and cash flow growth. In addition, we also monetised selected LNGC assets to unlock capital and made further progress on the modification of one of our LNGCs into an FSU to ensure continued value creation from our assets. Throughout the year, we also upheld our core principles of Care and Comply, prioritising the safety and well-being of our employees, contractors and the environment. Looking ahead, despite challenging market conditions, we remain committed to operational excellence and prudent financial management while strengthening our long-term revenue base to create sustainable value for our stakeholders. Gas Assets & Solutions KEY FOCUS AREAS & RESULTS Focus Area What We Did in 2024 Results Fleet Rejuvenation LNGC Fleet Growth • Signed long-term charter contracts for newbuild LNGCs, enhancing the fleet with modern, energy-efficient vessels • Successfully secured: - Three new LNGCs with QatarEnergy, featuring the latest technologies for fuel efficiency and reduced carbon emissions for deliveries in 2026-2027 - Two new LNGCs with PLL for delivery in 2027 Expansion Into New Energy Strategic Partnership • Explored new energy business opportunities, assessing technology applications and solutions • Supported NED in feasibility studies for LCO₂ carriers, focusing on technical, financial, operational viability, market demand and regulatory compliance Unlock Value From Existing Assets Optimisation • Enhanced value from existing tonnage • Unlocked capital through the sale of LNGCs: Portovenere, Lerici and Puteri Intan Asset Class Expansion • Advanced the expansion of our current asset portfolio • Converted an existing LNGC, Puteri Delima Satu into an FSU for Pengerang LNG (Two) Sdn. Bhd. (PLNG2SB), and we will deliver in Q2 2025 KEY ACHIEVEMENTS Key Financial Highlights Vessel Utilisation Operating Profit (RM million) Revenue (RM million) 2024 2024 2023 2023 3,263.9 1,572.1 2,987.4 1,047.7 2023 >99% 2024 >91% Milestones Operational Excellence • Delivered 19.96 MTPA worth of cargo, approximately 5% of the global LNG transportation volume Project Delivery Excellence • Commencement of the construction of the first of two new LNGCs under long-term contracts with SeaRiver Maritime LLC, a wholly-owned subsidiary of ExxonMobil Business Highlights
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