Integrated Annual Report 2024

INTEGRATED ANNUAL REPORT 2024 84 85 SECTION 7: BUSINESS REVIEW www.miscgroup.com MISC BERHAD Offshore The Offshore segment is a leading player in the FPS sector, offering end-to-end offshore solutions and strategic partnerships. With expertise in EPCIC, repair and life extension (RLE) and decommissioning, we cater to greenfield, brownfield and ultra-deepwater developments. Operating a fleet of 12 assets across Malaysia, Thailand, Vietnam and Brazil, our global presence strengthens our position among the leading operators in the offshore industry and reinforces our mission to become a ‘Best-in-Class FPSO Operator’. We are committed to the energy transition, with a focus on integrating sustainable practices and advanced technologies to enhance efficiency, reliability and competitiveness. WHAT WE DO ALEXANDER JAMES BRIGDEN Vice President, Offshore It was a momentous year for the Offshore segment as we delivered on our most complex project to date, the FPSO Marechal Duque de Caxias. The unit successfully achieved first oil on 30 October 2024, followed by Final Acceptance on 2 November 2024. FPSO Marechal Duque de Caxias stands out as one of the most cutting-edge FPSOs in the industry and is the Group’s first ultra-deepwater asset. This milestone reflects our engineering expertise, rigorous project management and ability to deliver large-scale deepwater solutions, despite facing pandemic-induced supply chain challenges. I am proud of the resilience, dedication and collaboration demonstrated by our teams in maintaining the highest standards of safety and operational excellence while executing this project. Most notably, the completion of the project has unlocked steady and long-term cash flow moving forward, effectively re-energising our business and enabling us to contribute to the Group’s MISC 2030 Ambition. As a result of the completion of FPSO Marechal Duque de Caxias this year, we had to contend with close out costs and reduced construction income as the project came to an end. Additionally, increased costs related to projects for asset redeployment and life extension contributed to lower revenue and profits in 2024. Looking ahead, we are positive that FPSO Marechal Duque de Caxias will contribute to our cash flow growth. We will remain focused on operational efficiency, cost optimisation and exploring opportunities through a mixed contracting strategy to strengthen our position in the offshore market. While there will be headwinds, we recognise the opportunities present, especially as the FPSO super cycle gains even more momentum. In addition, we are committed to foster a culture of collaboration, to empower our teams to think beyond the present and to seize opportunities. KEY FOCUS AREAS & RESULTS Focus Area What We Did in 2024 Results Project Delivery Excellence Consistent Project Delivery • Ensured the successful project delivery of FPSO Marechal Duque de Caxias • FPSO Marechal Duque de Caxias achieved first oil and secured final acceptance Operational Excellence Improve Operational Efficiencies • Established an Operations Management Framework (OMF) aligned with industry best practices, EI PSM standards and MISC Group policies • Standardised and strengthened O&M Framework, comprising the required processes and standards • Demonstrated ongoing excellence in Asset Management • Successfully retained the ISO 55001:2014 Asset Management Systems certification from UKAS HSEQ Excellence Sustained Certifications • Recorded advanced standing in management systems certifications • ISO 9001 and ISO 29001 for Quality Management System • ISO 45001 and ISO 14001 for HSE Management System • ISO 55001 for Asset Management System Regulatory Compliance • FPSO Marechal Duque de Caxias achieved advanced standing in meeting regulatory compliance requirements • Obtained approvals from Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) and Operating License from the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) Towards Decarbonisation Incorporated Sustainability into Business and Operations • Develop innovative new energy solutions through strategic collaboration initiatives • Signed an MoU with Aker Solutions, PETRONAS Carigali Sdn. Bhd. and Clean Energy Systems Inc for a pilot project using ZEUS technology which utilises advanced oxy-fuel combustion to convert CO₂ into power while capturing and storing emissions Asset Project Management and Execution Strengthened Asset Life Extension • Ongoing upgrades and repairs to extend operational life, while meeting client needs and industry standards • Asset life extension for FSO Orkid and FPSO Ruby II progressed as planned Offshore 2023 >90% Business Highlights Asset Uptime KEY ACHIEVEMENTS Key Financial Highlights Revenue (RM million) Operating Profit (RM million) 2024 2024 2023 2023 2,548.2 652.2 1,636.3 51.5 2024 >97%

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