Integrated Annual Report 2024

INTEGRATED ANNUAL REPORT 2024 86 87 SECTION 7: BUSINESS REVIEW www.miscgroup.com MISC BERHAD Offshore Awards and Recognitions British Safety Council • The FPSO Marechal Duque de Caxias Project received the International Safety Award 2024 – Distinction, recognising its outstanding commitment to health, safety and well-being throughout 2023 Malaysian Society for Occupational Safety and Health (MSOSH) • FSO Puteri Dulang attained the Gold Merit Award, recognising its Excellent OSH performance • FSO Orkid attained the Gold Class 1 Award, recognising its Very Good OSH performance • FPSO Kikeh attained the Gold Class 2 Award, recognising its Very Good OSH performance NAVIGATING THE CHALLENGES IN 2024 Challenges Mitigation Action Results Energy Transition and Decarbonisation Drive Innovative Solutions • Enhanced efforts in the development and deployment of new energy solutions through strategic collaborations • Collaborated with industry stakeholders on a pilot project featuring ZEUS, converting CO₂ into dispatchable power with full emissions capture and storage Limited Capital Availability Securing New Financing Sources • Improved funding opportunities through the formation of strategic partnerships • Established partnerships and alliances within the industry, including the financial community Operational Efficiency and Productivity Strategic Partnerships • Engaged with strategic partners to streamline operations and maximise productivity • Established collaborations with key industry stakeholders to create value and manage risks effectively Milestones Project Delivery of FPSO Marechal Duque de Caxias • Achieved first oil production and flare ignition on 30 October 2024 and secured Final Acceptance on 2 November 2024 after a successful uninterrupted 72-hour performance test Project Execution Excellence • Achieved 2 million manhours without LTI for FPSO Bunga Kertas Redeployment Project MOVING FORWARD Decarbonisation • Develop low emissions floater technology Resilient Core • Ensure asset integrity, as well as safe and reliable operations, through operational excellence • Offer a mixed contracting strategy encompassing lease & operate, EPC and O&M services • Deliver projects safely, on time and cost-efficiently through project execution excellence • Leverage FPSO Marechal Duque de Caxias’s success to expand deepwater opportunities • Strengthen capabilities and mitigate risks through strategic partnerships Profitable New Energy Business • Develop Ammonia FPSO and Mega-Module Engineering and Green Architecture (MMEGA) FPSO solutions through strategic partnerships Marine & Heavy Engineering With a heritage spanning over 50 years, MHB has earned a global reputation for excellence in energy and marine solutions. Trusted by international energy clients, MHB operates Malaysia’s largest fabrication yard—also among the largest in Southeast Asia—and delivers integrated solutions for a wide range of offshore and onshore facilities, as well as vessels. MHB’s specialisation lies in offshore construction, including deepwater facilities, as well as marine repair, conversion and refurbishment services, with a niche focus on LNGCs. Recognising the importance of sustainability, we continue to expand our services to support the global energy transition, focusing on renewable energy and decarbonisation initiatives. Leveraging our extensive expertise, we construct carbon capture facilities and advanced offshore wind farm substations and provide fabrication services for green hydrogen facilities, supporting our clients’ aspirations for more sustainable energy solutions. WHAT WE DO MOHD NAZIR MOHD NOR Vice President, Marine & Heavy Engineering Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has demonstrated resilience and adaptability in navigating a challenging market environment, successfully returning to profitability. This financial recovery underscores the robustness of our business model and our ability to thrive in a rapidly evolving market landscape. Our transformation journey—driven by business portfolio optimisation, organisational restructuring and enhanced operational efficiencies—will continue to strengthen both our operational and financial performance. Coupled with a reinforced commitment to HSSE, these accomplishments align with our strategic priorities, reflecting a focused approach to delivering the strategy centered on operational excellence and maximising returns. A significant driver of MHB’s growth has been our strategic expansion into the new energy sector. By securing key contracts in offshore wind and carbon capture projects, we have diversified our portfolio and strengthened our role in the transition to a low-carbon economy. Notably, the award of a second offshore wind project to construct an OSS HVDC platform for Nederwiek 1, as part of TenneT’s 2GW Programme in the Netherlands underscores this commitment. In the Heavy Engineering sub-segment, we continued to build on our strong foundation in conventional and emerging new energy markets. The successful delivery of major projects, including the Kasawari Gas Development, SK408W Jerun Development and Rosmari-Marjoram Gas Project, showcases our ability to manage and deliver complex projects. Our continued progress in offshore wind further establishes our growing expertise in renewable energy infrastructure. Meanwhile, in the Marine sub-segment, we have further fortified our position as a preferred yard for LNGC dry docking, repairs and conversions. We achieved significant milestones, including delivering 86 vessels in 2024, with 15 vessels delivered ahead of schedule. The continued improvement in service quality is evident, as reflected in our customer satisfaction surveys, with 18 vessels receiving a perfect score of 10. Furthermore, we have successfully expanded into the Greek market, marking a significant breakthrough into a new region and further enhancing our global presence. As the energy landscape evolves, MHB remains committed to balancing its presence in both traditional and new markets. To navigate market volatility and strengthen client partnerships, we are enhancing our contracting strategies with risk-sharing models, such as alliance concepts and cost-plus agreements. With a focus on innovation and growth, we are driving sustainable recovery and delivering long-term value.

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