INTEGRATED ANNUAL REPORT 2024 82 83 SECTION 7: BUSINESS REVIEW www.miscgroup.com MISC BERHAD Petroleum & Products KEY FOCUS AREAS & RESULTS Focus Area What We Did in 2024 Results Fleet Rejuvenation VLCC Fleet Rejuvenation • Took delivery of new LNG dual-fuel vessel • Delivered Eagle Veracruz, the final vessel in a series of three LNG dual-fuel VLCCs on long-term charters to Shell Tankers (Singapore) Private Limited Strategic Collaborations • Signed long-term in-charters through close collaboration with an industry partner • Rejuvenated our Aframax fleet with eco-efficient vessels in collaboration with shipowner Singfar Group for two newbuild LNG dual-fuel Aframax tankers Progressing Ammonia Value Chain First Newbuild Ammonia Dual-Fuel Tankers • Signed newbuilding contracts for the world’s first ammonia dual-fuel Aframax tankers, backed by long-term charters • Successfully entered into long-term TCPs with PTLCL for two ammonia dual-fuel Aframax tankers, enhancing our secured income stream and advancing our commitment to low-carbon solutions through strategic collaborations Milestones Petroleum & Products Celebrating 30 Years of Excellence • Three decades of excellence and progress in the global energy transportation sector Pioneering Ammonia Dual-Fuel Technology • Signed long-term TCPs with PTLCL for the world’s first two ammonia dual-fuel Aframax tankers Driving Industry Collaboration • AET joined MPA’s Maritime Energy Training Facility Collaboration, reinforcing a commitment to advancing sustainability and operational excellence NAVIGATING THE CHALLENGES IN 2024 Challenges Mitigation Action Results Extended OPEC+ Production Cuts Enhanced Financial Resilience • Maintained optimal portfolio of assets on long-term charters to strengthen secured income strategy • Fleet was less impacted by the volatility as a large proportion of our vessels are on secured long-term charters Heightened Security Risk and Sanctions Compliance from Geopolitical Conflicts Ensured Safety of Crew Members • Avoided conflict zones • Collaborated with ship managers and charterers to ensure the safety of the crew and vessels • The safety of the crew and assets were prioritised • No AET vessels were attacked or affected Close Monitoring for Compliance • Conducted close monitoring of sanctions compliance • All vessels in the fleet remain in compliance New and Enhanced Maritime Regulations Fleet Rejuvenation with Lower-Carbon Emissions Vessels • Signed newbuilding contracts for the world’s first three ammonia dual-fuel Aframax tankers • In 2024, AET operated 11 LNG dual-fuel vessels in its fleet • The results have contributed to a reduction in the Group’s overall GHG emissions intensity MOVING FORWARD Decarbonisation • Enhance operational efficiency to reduce emissions Resilient Core • Progressively rejuvenate our fleet with efficient tankers to capitalise on opportunities in the tanker market Profitable New Energy Business • Advance new energy opportunities through strategic partnerships focusing on offshore wind, ammonia carriers and low-carbon fuel value chains KEY ACHIEVEMENTS Key Financial Highlights Revenue (RM million) Vessel Utilisation 2023 >99% 2024 >98% Operating Profit (RM million) 2024 2024 2023 2023 5,030.2 1,356.6 5,044.1 1,482.7 Awards and Recognitions Tanker Operator of the Year 2024 • Awarded at The Tanker & Shipping Trade 2024 Awards MPA’s Green Ship Status • Awarded to LNG dual-fuel VLCCs, Eagle Veracruz and Eagle Ventura Islamic Finance Deal of the Year – Singapore • Awarded in collaboration with Maybank at the EuroMoney Islamic Finance Awards 2024 CSA’s Jones F. Devlin Award for Safety • 41 vessels were honoured for their commitment to safety Singapore Children’s Society’s Commendation Service Award 2024 • Received for AET’s community contributions Best Sustainability-Linked Financing • Awarded the Best in Sustainable Finance Deals and Best Deals by Country (Singapore), alongside Maybank at The Asset Triple A Islamic Finance Awards 2024 CSA’s Environmental Achievement Award 2024 • 51 AET vessels were recognised for strong environmental performance Business Highlights
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