INTEGRATED ANNUAL REPORT 2024 80 81 SECTION 7: BUSINESS REVIEW www.miscgroup.com MISC BERHAD Gas Assets & Solutions NAVIGATING THE CHALLENGES IN 2024 Challenges Mitigation Action Results Evolving Competitive Landscape Strengthened Market Position • Fostered purposeful strategic alliances and partnerships to solidify market positioning and competitiveness • Successfully secured long-term charter contracts with QatarEnergy and PLL for newbuild LNGCs Long-serving Fleet Asset Divestment Opportunities • Explored opportunities to unlock capital for reinvestment into newer and more efficient vessels • Successfully completed the sale of three LNGCs post their long-term charter expiry Market Volatility Focused Execution to Market Spot Vessels • Pursued strategic spot market positioning to maximise short-term opportunities • Secured short-term charter contracts to support fleet utilisation MOVING FORWARD Decarbonisation • Maximise the value of our assets throughout their useful life, while managing GHG and regulatory compliance • Enhance operational efficiency to reduce emissions • Implement abatement technologies Resilient Core • Progressive fleet rejuvenation and expanding into strategic growth markets • Expand opportunities in FSU, FSRU, FSRP and VLEC segments • Maximise asset availability and utilisation Profitable New Energy Business • Advance new energy opportunities through strategic partnerships focusing on LCO₂ carriers and carbon value chain Petroleum & Products AET owns and operates a diverse fleet of petroleum and product tankers, delivering crude oil and refined products safely and efficiently worldwide. We are a market leader in specialised services, including STS lightering, with over 16,000 transfers, mainly in the US Gulf. We are also a leading owner-operator of DPSTs, crucial for offshore-to-onshore oil transport, and operate the world’s only two MCVs, designed for rapid oil well incident response in the US Gulf. Committed to maritime decarbonisation, we pioneered LNG dual-fuel tankers, with nine in our fleet, reducing emissions significantly compared to conventional vessels. WHAT WE DO ZAHID OSMAN President/CEO AET This year, we celebrated a significant milestone—30 years of progress at AET. Starting with just three tankers, we have since evolved into a leading global tanker owner and operator, managing a diverse fleet of over 60 vessels. Our fleet includes some of the most energy-efficient and modern petroleum tankers in the industry. 2024 marked one of our strongest years. We capitalised on a robust tanker market to achieve our best financial performance in more than 15 years. Revenue, cash flow and net profit after tax were exceptionally strong, underscoring our ability to navigate market dynamics effectively. Health, safety, security and care for the environment remain at the core of our operations. Regular safety education and engagement sessions were conducted across AET’s global locations. Senior management reinforced these efforts by visiting our sites and vessels, engaging directly with employees on health and safety matters. These visits emphasised care for one another, adherence to life-saving rules and compliance with HSSE commitments to ensure safer workplaces. In 2024, we solidified our leadership in emissions reduction within the tanker industry. Building on our pioneering work in LNG dual-fuel tankers, we took a significant step forward by ordering the world’s first three ammonia dual-fuel Aframax tankers. Two of these vessels are backed by long-term charters with PTLCL. Additionally, we expanded our LNG dual-fuel fleet by signing long-term in-charters for two newbuild Aframax tankers. Alongside rejuvenating our fleet with lower-carbon emissions vessels, we focused on reducing emissions from our existing fleet by testing new emissions-reduction technologies, improving operational efficiencies and adopting lower-emission fuels, such as biofuels. These initiatives will support achievement of the Group’s MISC 2030 Ambition. We support communities where we operate. After severe flooding in Brazil, AET donated supplies through the Brazilian Army. In the US Gulf Coast, we contributed to Hurricane Beryl relief by providing essentials to Target Hunger, with 19 volunteers packing 4,000 lbs of produce. To develop maritime talent, we signed an MoU with the Singapore Maritime Foundation in December, offering four scholarships and two internships annually from 2025 to 2027, reinforcing the AET-MaritimeONE partnership.
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