INTEGRATED ANNUAL REPORT 2025 #deliveringProgress
In a world of complex challenges, the future is not a destination we await, but a reality we build with every action we take. MISC Group stands at the nexus of this journey, where reliability meets visionary change. Our theme, #deliveringProgress, reflects the powerful duality of our mission: we are the unwavering maritime force that delivers the energy essential for today’s world, while simultaneously advancing the innovations that will define the next era of energy transition. With 57 years of heritage, MISC Group is deeply anchored in Malaysia’s nation-building journey. We have not only contributed to the growth of our national economy but have also positioned Malaysia as a key player in the global maritime industry. Our legacy is built on operational excellence, maritime leadership and a steadfast commitment to national progress, a legacy we carry forward as we navigate the evolving global energy landscape and contribute to shaping its sustainable future. For MISC Group, progress is not an aspiration but a measurable result, delivered through our Resilient Core, alongside our efforts in pioneering new energy solutions and our unwavering commitment to decarbonisation. This commitment is what enables us to serve as the vital link between the energy needs of today and a sustainable tomorrow, proving that leadership means taking responsibility for the future, one milestone at a time. #deliveringProgress NAVIGATION ICONS Key Capitals Natural Financial Intellectual Operating Environment United Nations Sustainable Development Goals Key Stakeholder Groups S4 Employees S3 Customers S10 Media S7 Industry Peers S5 Business Partners/ Suppliers & Vendors S1 Government/Regulators S8 Academic Organisations S2 Shareholders/Investors/ Financial Services Providers S6 Communities S9 Trade Associations/ NGOs E2 Global Economy E5 Offshore Sector E8 Advancements in Technology and Digitalisation in the Maritime Industry Material Matters M4 Air Pollution M2 Waste Management M12 Digitalisation M5 Health, Safety and Security M3 Ecological Impact M1 Climate Change and GHG Emissions M9 Corporate Governance and Business Ethics M7 Human Rights M10 Cybersecurity M8 Community Engagement and Development M6 Talent Management M11 Supply Chain Management E1 Geopolitics E4 Crude Oil Sector E7 Energy Transition Risks Cybersecurity Risk R8 Financial Risk R4 Market Risk R2 Compliance and Regulatory Risk R10 Project Delivery Risk R6 Health, Safety, Security and Environment Risk R7 Physical Climate Risk R11 Energy Transition and Decarbonisation Risk R3 Talent Risk R9 Geopolitical Risk R1 Asset Integrity and Performance Risk R5 Social & Relationship Human Physical Strategic Pillars E3 LNG Sector E6 Decarbonisation of the Maritime Industry SP3 Decarbonisation SP1 Resilient Core SP2 Profitable New Energy Business Areas of focus Areas of interest Materiality Quadrant Areas to monitor Areas of low importance To download a soft copy, go to https://www.miscgroup.com/investorrelations/presentations-and-reports or scan the QR code. INSIDE THIS REPORT 02 About This Report 03 MISC’s 2025 Integrated Reporting Suite INTRODUCTION SEC 01 06 Who We Are 07 Our Investment Case 08 Our Businesses 12 How We Move Energy ABOUT MISC SEC 02 SEC 03 KEY MESSAGES 16 Chairman’s Message 20 President & Group Chief Executive Officer’s Message 24 Chief Strategy & Sustainability Officer’s Message 26 Chief Financial Officer’s Message SEC 04 HIGHLIGHTS 30 Key Highlights of 2025 32 Building Momentum Towards the MISC 2030 Ambition 36 A Look Back at 2025 SEC 06 STRATEGIC REVIEW 56 Our Operating Environment 64 Our Material Matters 74 Our Risks and Mitigation Strategies 84 Delivering Our Strategy 90 Sustainability as a Decision Lens Under MISC 2030 Ambition SEC 07 BUSINESS REVIEW 96 Gas Assets & Solutions 102 Petroleum & Products 108 Offshore 114 Marine & Heavy Engineering 120 Marine Services 126 Maritime Education & Training SEC 08 CORPORATE ENABLERS 134 Human Capital Investment 135 Operating Safely & Sustainably 136 Operating Responsibly SEC 05 VALUE WE CREATE 46 Our Integrated Approach to Value Creation 48 Value Creation Business Model 50 Engaging with Stakeholders SEC 10 LEADERSHIP 150 Our Board at a Glance 152 Profiles of the Board of Directors 162 Our Executive Leadership Team 163 Profiles of the Executive Leadership Team SEC 09 FINANCIAL REVIEW 140 Group Financial Review 143 Financial Calendar 144 Five-Year Group Financial Performance 146 Statement of Value Added & Value Distributed SEC 11 GOVERNANCE 172 Corporate Governance Overview Statement 196 Board Nomination & Remuneration Committee Report 205 Board Audit Committee Report 213 Board Sustainability & Risk Committee Report 218 Statement on Risk Management & Internal Control 238 Statement of Directors’ Responsibility 238 Additional Compliance Information SEC 12 ADDITIONAL INFORMATION 242 Disclosure of Financial Data for Shariah Screening 244 Properties Owned by MISC Berhad and Its Subsidiaries 246 Statistics on Shareholdings 249 Corporate Information 250 List of Abbreviations SEC 13 ANNUAL GENERAL MEETING 256 Notice of Annual General Meeting Form of Proxy
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 01 INTRODUCTION 02 08 05 11 03 09 06 12 04 10 07 13 #deliveringProgress 2 www.miscgroup.com 3 www.miscgroup.com ABOUT THIS REPORT MISC’S 2025 INTEGRATED REPORTING SUITE We are pleased to present MISC Berhad’s (“MISC” or “the Group”) Integrated Annual Report 2025, which provides a balanced and fair assessment of how the Group creates value for its stakeholders. This report outlines our material matters, business strategies, risks and corporate governance practices, as well as financial and non-financial performance. It also highlights the Group’s ongoing efforts to advance innovation and low-carbon solutions in support of our value creation approach. REPORTING SCOPE AND BOUNDARIES This Integrated Annual Report (IAR) covers MISC Berhad, its subsidiaries, associates and joint ventures, collectively referred to as MISC or the Group. The reporting period is from 1 January to 31 December 2025 unless stated otherwise and includes material events up to the date of publication. Any material developments after publication will be communicated through Bursa Malaysia or other public channels. The information presented relates to the Group’s business activities and operations across Gas Assets & Solutions, Petroleum & Products, Offshore, Marine & Heavy Engineering, Marine Services and Maritime Education & Training. MATERIALITY The information in this IAR is based on material matters that are most important to the Group and its stakeholders. In determining these matters, we considered issues that affect our ability to execute our strategies, create value and sustain long-term financial and non-financial performance. The assessment also reflects recognised risks and the interests of key stakeholder groups. DEMONSTRATING OUR INTEGRATED THINKING This report outlines how the Group creates value through its corporate and sustainability strategies. It maps the connections between our financial and non-financial capitals, material topics, stakeholder expectations, strategic objectives, and the risks and opportunities that influence our decisions. While cost–benefit considerations inform the level of detail in certain disclosures, we do not omit information that is material to understanding our value creation. SUSTAINABILITY RISKS AND GOVERNANCE Across our operating markets, we consider material economic, environmental, social and governance (EES&G) principles when developing our strategies, policies and initiatives. EES&G-related risk management is embedded within our performance modelling to support effective decision-making. FORWARD-LOOKING STATEMENTS This IAR includes forward-looking statements that reflect the Group’s expectations of its future value creation prospects. As the operating environment is dynamic and the industry in which MISC operates involves inherent uncertainties, actual outcomes may differ from these expectations. These statements should therefore not be regarded as guarantees of future performance. RESPONSIBILITY STATEMENT The Board of Directors acknowledges its responsibility in ensuring the integrity of the MISC Berhad Integrated Annual Report 2025. In the Board’s opinion, this report has addressed all material issues and matters and fairly presents the Group’s performance for the year 2025. This report has been prepared in accordance with the International Integrated Reporting <IR> Framework. Approved by the Board of Directors on 23 February 2026 and signed on behalf of the Board: KEY FRAMEWORKS APPLIED ACROSS THE INTEGRATED REPORTING SUITE IAR SR FR Reporting Standards/Frameworks/Guidelines International <IR> Framework issued by the International Integrated Reporting Council (IIRC) Malaysian Financial Reporting Standards (MFRS) International Financial Reporting Standards (IFRS) National Sustainability Reporting Framework (NSRF) IFRS Sustainability Disclosure Standards (S1 and S2) Sustainability Accounting Standards Board (SASB) Standards Global Reporting Initiative (GRI) Standards AA1000 Stakeholder Engagement Standard United Nations Global Compact Guiding Principles United Nations Guiding Principles on Business and Human Rights Principles of Climate Governance by World Economic Forum United Nations Sustainable Development Goals (SDGs) Regulatory Requirements Main Market Listing Requirements (MMLR) issued by Bursa Malaysia Companies Act 2016 (CA 2016) Malaysian Code on Corporate Governance 2021 Corporate Governance Guide (4th Edition) issued by Bursa Malaysia External Benchmarks/Indices/Ratings/Assessments FTSE4Good Bursa Malaysia Index Carbon Disclosure Project (CDP) MSCI ESG Ratings Morningstar Sustainalytics ESG Risk Ratings S&P Corporate Sustainability Assessment INTEGRATED ANNUAL REPORT (IAR) 2025 Provides shareholders and stakeholders with an integrated view of the Group’s financial and non-financial performance, value creation and strategic direction. It covers the external operating environment, business model, strategy, achievements, material matters, corporate governance and risk management. SUSTAINABILITY REPORT (SR) 2025 Presents the Group’s sustainability strategy, initiatives and performance across key environmental, social and governance (ESG) areas to support transparency in our ESG disclosures with a dedicated section on Sustainability-related Financial Disclosures aligned with the International Financial Reporting Standards (IFRS®) issued by the International Sustainability Standards Board (ISSB). FINANCIAL REPORT (FR) 2025 Contains the Group’s detailed financial disclosures, including the Directors’ Report, Audited Financial Statements and Independent Auditors’ Report, prepared in accordance with applicable financial reporting standards. DATUK ABU HURAIRA ABU YAZID Chairman ZAHID OSMAN President & Group Chief Executive Officer • The financial information in this report is derived from the consolidated Audited Financial Statements for the year ended 31 December 2025, which were audited by Ernst & Young PLT. • MISC obtained independent limited assurance on selected sustainability performance data for the year ended 31 December 2025. The independent assurance statement is presented in the Sustainability Report 2025. ASSURANCE A CONNECTED NARRATIVE OF VALUE CREATION These frameworks guide the structure, content and assurance of MISC’s integrated reporting:
06 Who We Are 07 Our Investment Case 08 Our Businesses 12 How We Move Energy ABOUT MISC SECTION 2
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 08 05 11 03 09 06 12 04 10 07 13 6 www.miscgroup.com 7 www.miscgroup.com SEC 02 ABOUT MISC #deliveringProgress WHO WE ARE OUR INVESTMENT CASE Diversified business portfolio supported by long-term contracted assets and track record of operational excellence Stable cash flow with strong discipline in risk and financial management Strong growth pipeline supported by long-term contracts in both our core and profitable new energy businesses Integrated commercial viability and ESG priorities in our business operations Highly experienced leaders, operating within a strong governance framework Sustainable partnerships with key industry players Fleet Strength • Modern fleet of 108 gas and petroleum vessels • 12 offshore floating production assets Workforce Over 8,000 sea and shore employees from over 40 nationalities Proven Track Record Global Operations 57 years of experience in delivering energy-related maritime solutions and services Operating presence in 11 countries, moving energy across continents Strong Credit Ratings Baa2 (Stable) BBB+ (Stable) Market Strength Among the world’s leading energy shipping and maritime solutions provider with a market capitalisation of RM34.8 billion OUR SHARED VALUES Loyalty Loyal to corporation Cohesiveness United, trust and respect for each other Integrity Honest and upright Professionalism Strive for excellence To consistently provide better energy-related maritime solutions and services OUR VISION OUR MISSION To be consistently better, we strive to: • Exceed the expectations of our customers • Promote individual and team excellence of our employees • Create a positive difference to the lives of communities • Care for the environment and operate responsibly • Drive sustainable value for our shareholders MISC Berhad is an energy-related maritime group with more than five decades of industry experience. The Group’s businesses cover energy shipping and related activities, offshore floating solutions, marine repair and conversion, integrated marine services, port and terminal management, as well as maritime education and training. The Group operates across the maritime energy value chain through a global presence supported by 108 vessels and 12 offshore assets. Our diversified fleet includes liquefied natural gas (LNG) carriers, ethane carriers, petroleum tankers and offshore floating facilities, alongside Malaysia’s largest fabrication yard and one of Southeast Asia’s largest drydocks. MISC’s operations are carried out by a skilled global workforce, committed to the safe, reliable and efficient delivery of energy and maritime related solutions and services. In addition to our established core businesses, the Group continues to advance the energy transition as we explore and invest in new energy-related opportunities, reflecting MISC’s commitment to shaping a sustainable future for the maritime and energy industries. OUR STRENGTH For more information, please visit MISC’s corporate website at www.miscgroup.com. VALUE PROPOSITION 1 4 2 5 6 3 • 19 gas and petroleum vessels under construction • 1 offshore floating asset under construction
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 08 05 11 03 09 06 12 04 10 07 13 8 www.miscgroup.com 9 www.miscgroup.com SEC 02 ABOUT MISC #deliveringProgress OUR BUSINESSES Please refer to the Gas Assets & Solutions Business Review on pages 96 to 101 for more information. Please refer to the Petroleum & Products Business Review on pages 102 to 107 for more information. GAS ASSETS & SOLUTIONS PETROLEUM & PRODUCTS Our Gas Assets & Solutions (GAS) segment specialises in transporting LNG and ethane, as well as providing asset-based solutions, leveraging decades of expertise. We operate a modern and diverse fleet of petroleum and product tankers, including specialised vessels such as Dynamic Positioning Shuttle Tankers and Modular Capture Vessels. Our fleet is designed to deliver petroleum and refined products with a focus on safety, reliability and efficiency. 67 vessels 5 vessels under construction Navigating Growth, Resilient Through Challenges FLEET STRENGTH LNG Carrier (LNGC) FLEET STRENGTH 14 vessels under construction 41* vessels * including 10 co-owned 32 vessels Very Large Crude Carrier (VLCC) 11 vessels Dynamic Positioning Shuttle Tanker (DPST) 17 vessels Floating Storage Unit (FSU) 3 vessels Suezmax Tanker 6 vessels Long Range 2 (LR2) Tanker 2 vessels Very Large Ethane Carrier (VLEC) 6 vessels Aframax Tanker 23 vessels Lightering Support Vessel (LSV) 8 vessels Note: Includes two modular capture vessels (MCVs)
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 08 05 11 03 09 06 12 04 10 07 13 10 www.miscgroup.com 11 www.miscgroup.com SEC 02 ABOUT MISC #deliveringProgress Please refer to the Marine Services Business Review on pages 120 to 125 for more information. Please refer to the Maritime Education & Training Business Review on pages 126 to 130 for more information. Please refer to the Marine & Heavy Engineering Business Review on pages 114 to 119 for more information. MARINE & HEAVY ENGINEERING MARINE SERVICES MARITIME EDUCATION & TRAINING We provide a comprehensive range of integrated marine solutions including ship management, port and terminal operations, port engineering and maintenance, and marine assurance services. Our services are tailored to meet the diverse requirements of our clients while ensuring adaptability to the evolving dynamics of the marine industry. Akademi Laut Malaysia (ALAM) offers a spectrum of maritime courses including nautical and marine engineering programmes, maritime and offshore safety courses, simulator-based courses and maritime management programmes, as well as research and consultancy services. Through strategic partnerships with leading academic institutions and industry pioneers, we enhance research, develop future-ready talent and address critical industry challenges. Our Marine & Heavy Engineering segment operates one of the largest fabrication yards in Southeast Asia. We specialise in offshore construction, marine repairs and upgrades, as well as the conversion of floaters, including FPSOs and FSOs. We also provide solutions in the new energy space such as offshore carbon capture facility and substation platform projects. Ship Management Services Pre-Sea Diploma, Post-Sea, Ratings and Modular Programmes Research & Consultancy Services Port Management & Maritime Services Marine Business Please refer to the Offshore Business Review on pages 108 to 113 for more information. OFFSHORE We are owners and operators of floating production systems across various locations globally, offering a comprehensive suite of services tailored to meet the dynamic floating solutions needs of the offshore business landscape, from shallow to ultra-deepwater field developments. KEY SERVICES KEY SERVICES KEY SERVICES FLEET STRENGTH Semi-submersible Floating Production System (Semi-FPS) 1 Unit Floating Production, Storage and Offloading (FPSO) 6 Units Floating Storage and Offloading (FSO) 5 Units Malaysia’s largest fabrication yard by tonnage capacity and one of Southeast Asia’s largest drydocks 12 offshore floating solutions 1 unit under construction Heavy Engineering
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 08 05 11 03 09 06 12 04 10 07 13 12 www.miscgroup.com 13 www.miscgroup.com SEC 02 ABOUT MISC #deliveringProgress HOW WE MOVE ENERGY Marine Services Offshore Petroleum & Products Gas Assets & Solutions Marine & Heavy Engineering Related Activities in Oil and Gas Value Chain Maritime Education & Training Complete/Full Range Offshore Platform EPCIC Services for Offshore & Onshore Construction Marine Conversion Works Ship Management Comprehensive Marine Repair & Refurbishment MISC plays a critical role in the energy value chain, providing long-distance transportation of energy resources and specialised maritime assets supporting offshore oil and gas production. DEVELOPING NEW ENERGY SOLUTIONS AMMONIA Unlocking ammonia as a low-carbon energy source requires deep expertise and collaboration across the entire value chain. With a strong maritime presence and close partnerships with molecule producers, MISC is uniquely positioned to deliver low‑carbon ammonia safely while advancing its use as a marine fuel. From transport and handling to emerging floating ammonia solutions, we work alongside industry partners to enable practical, scalable solutions for the maritime industry. FUTURE FUELS AND TECHNOLOGIES At MISC, the pursuit of future fuels and technologies is not a side effort — it is a core pillar of who we are. Our commitment to reducing reliance on fossil fuels and advancing global decarbonisation drives us to continuously innovate beyond the industry norm. From low‑carbon fuels such as ethanol to next‑generation propulsion systems such as fuel cells, we push boundaries to demonstrate how ambition, paired with innovation, can shape a more sustainable maritime future. CARBON CAPTURE AND STORAGE Our maritime heritage gives us a unique advantage in delivering CCS at scale. With decades of experience operating complex marine assets, we provide integrated marine solutions to move carbon dioxide (CO₂) safely and efficiently across the entire value chain. From onboard carbon capture to liquefied CO₂ (LCO₂) transport and offshore floating assets, we are aiming to provide a true end-to-end CCS solution. OFFSHORE WIND The offshore wind value chain offers strong potential for MISC, leveraging our offshore and maritime capabilities across the project lifecycle. We are positioning our maritime expertise to support offshore wind projects from construction and installation through to long-term operations and maintenance. The world is transitioning towards more sustainable and resilient energy systems. Our New Energy & Decarbonisation portfolio anchors ship management on: carbon capture and storage (CCS), ammonia, offshore wind value chains and other future fuels and technologies that support maritime decarbonisation. We believe progress is built together, and we invite like-minded partners to accelerate the development and scaling of these vital solutions.
Marine Services Offshore Developing New Energy Solutions Petroleum & Products Gas Assets & Solutions Marine & Heavy Engineering Related activities across value chains Maritime Education & Training Complete/Full Range Offshore Platform EPCIC Services for Offshore & Onshore Construction Marine Conversion Works Ship Management Comprehensive Marine Repair & Refurbishment MISC Businesses and Activities 08 11 09 12 10 13 14 #deliveringProgress 12 www.miscgroup.com HOW WE MOVE ENERGY MISC plays a critical role in the energy value chain, providing long-distance transportation of energy resources and specialised maritime assets supporting offshore oil and gas production. MISC BERHAD INTEGRATED ANNUAL REPORT 2025 01 05 03 06 04 07 SEC 02 ABOUT MISC 13
16 Chairman’s Message 20 President & Group Chief Executive Officer’s Message 24 Chief Strategy & Sustainability Officer’s Message 26 Chief Financial Officer’s Message KEY MESSAGES SECTION 3
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 16 www.miscgroup.com 17 www.miscgroup.com #deliveringProgress CHAIRMAN’S MESSAGE CHAIRMAN’S MESSAGE In 2025, the Group operated in a complex and unpredictable environment, against the backdrop of geopolitical volatility, shifting trade dynamics and changing regulatory expectations. The Board steered the organisation with prudence and clarity through rigorous oversight and agile judgement. The commitment, professionalism and resilience demonstrated by our people enabled MISC to navigate these challenges and deliver sustained progress. Dear Stakeholders, Sustainability reporting and performance measurement were further strengthened during the year to align with emerging global standards, including the International Sustainability Standards Board (ISSB) framework, reinforcing our commitment to transparent and decision-useful disclosures. NAVIGATING COMPLEXITY IN A SHIFTING GLOBAL LANDSCAPE The year was marked by heightened geopolitical tensions and economic uncertainty, affecting global energy and shipping markets. Trade and policy developments shifted global trade flows and shipping patterns, while evolving maritime and climate-related frameworks added complexity to investment decisions. Against this challenging landscape, the Board maintained close oversight of these developments to ensure key risks were carefully identified and assessed. These considerations were moulded into our strategic choices, including our decisions on capital allocation throughout the year. A strong focus was maintained on operational safety and risk management. In facing shifting trade routes and heightened operational complexity, the protection of our seafarers and shore-based personnel was treated as fundamental. Safety, regulatory compliance and operational discipline remained non-negotiable priorities. In this context, management’s execution of the Enterprise Strategy was closely guided to advance the MISC 2030 Ambition. Emphasis was placed on earnings stability, balance sheet strength and prudent risk management. This ensured our commercial strategies were responsive to market conditions while safeguarding the Group against downside risks. Guided by this approach, progress continued across the three pillars of the MISC 2030 Ambition. Within the Resilient Core, we delivered seven LNG carriers (LNGCs) to QatarEnergy, secured contracts for two very large ethane carriers (VLECs) and two LNG dual-fuel Suezmax tankers, and extended our offshore footprint in Brunei through MISC’s first Floating Production Unit (FPU) contract with PETRONAS Carigali Brunei Ltd. (PCBL). Success was also achieved by Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) when it secured contracts with Vestigo Petroleum Sdn. Bhd. (VESTIGO) for three wellhead platform Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) projects. Our advance into the Profitable New Energy Business remained measured and partnership-led, enabling the Group to build technical capabilities while mitigating execution risks. The incorporation of a liquefied carbon dioxide (LCO₂) carrier development joint venture and the achievement of Approvals in Principle (AiPs) for an ammonia-fuelled LR2 tanker and an ammonia FPSO, further strengthened our readiness to participate in emerging low-carbon value chains. Within Decarbonisation, the Group sustained its emissions reduction trajectory, achieving a 36% reduction in greenhouse gas (GHG) emissions intensity across our shipping operations from the 2008 baseline, driven by continued operational efficiency initiatives. Supported by the capability of our people across the global network and agility of our business, these efforts contributed to the Group’s solid financial performance in FY2025. BALANCING RETURNS WITH FINANCIAL PRUDENCE Despite ongoing market volatility, the Group recorded higher net profit before tax of RM1,862.0 million and operating cash flow of RM5,656.1 million. The improvement reflects the durability of our earnings base and the methodical approach embedded in our capital management. The strong cash generation supported the Board’s decision to declare a higher dividend of 38 sen per share, reaffirming the Board's promise to sustainable shareholder returns while maintaining financial strength. STRENGTHENING OVERSIGHT THROUGH ROBUST GOVERNANCE Strong governance and active Board stewardship underpin the Group's stability, enabling systematic oversight of portfolio decisions, major project approvals and capital allocation. This is guided by principles of independence, professionalism and objectivity, and supported by enhanced related party and conflict of interest governance practices. Throughout the year, we fostered constructive challenge within the Board and its Committees to ensure that decision-making processes remained rigorous and balanced. This culture of open dialogue strengthens accountability and reinforces the quality of strategic judgement. A 38 sen dividend per share was declared, an increase from the previous year, reaffirming the Board’s commitment to sustainable shareholder returns. DATUK ABU HURAIRA ABU YAZID Chairman, Independent Non-Executive Director
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 18 www.miscgroup.com 19 www.miscgroup.com #deliveringProgress CHAIRMAN’S MESSAGE CHAIRMAN’S MESSAGE We enhanced our integrity and accountability frameworks, including the formalisation of Directors’ Conflict of Interest procedures and updated Guidelines on Related Party Transactions and Recurrent Related Party Transactions for MISC Group, to support informed and independent judgement while safeguarding stakeholder trust. Governance enhancements also focused on strengthening Board effectiveness and oversight quality. This was reflected in our updated Terms of Reference, providing clearer delineation of responsibilities and structured review processes that improved alignment and accountability. An independent Board Effectiveness Evaluation provided further insights to strengthen Board composition, performance and dynamics. Recognising the evolving regulatory, sustainability and geopolitical landscape, the Board continued investing in capability development through targeted training and focused learning sessions. These efforts ensured that the Board remains well equipped to oversee emerging risks, transition priorities and long-term strategic trade-offs. REINFORCING TRUST THROUGH GOVERNANCE AND REPORTING RECOGNITION The Group’s commitment to strong governance and transparent reporting was reflected in the recognitions received during the year, including awards at the National Corporate Governance & Sustainability Awards (NACGSA) 2025 and the National Annual Corporate Report Awards (NACRA) 2025. These recognitions affirm the Board’s sustained focus on integrity, disclosure quality and accountability to stakeholders. ADVANCING TRANSITION WITH PRUDENCE AND CREDIBILITY The energy transition has evolved at an uneven pace due to fragmented policy direction, which has led to greater scrutiny over the costs involved in advancing decarbonisation pathways. In this environment, the Board’s responsibility is to ensure meaningful progress while ensuring that decarbonisation initiatives advance in a measured and orderly manner, aligned with regulatory clarity, technological maturity and execution readiness. On behalf of the Board, I thank our shareholders and stakeholders for their continued trust and support. I also extend my appreciation to my fellow Board members for their counsel, constructive challenge and dedication to sound governance, and to the Executive Leadership Team for their focus on disciplined execution. Above all, I wish to acknowledge the people of MISC across our operations, onshore and offshore. Your commitment, expertise and sense of responsibility enable the organisation to perform safely and reliably each day, sustaining our operational excellence and the trust placed in MISC by customers and partners worldwide. As I mark my fifth and final year as Chairman, I take confidence in the strength of the governance framework, leadership team and organisational capability that will underpin the next phase of MISC’s journey. APPRECIATION Ranked Top 20 Overall Excellence at NACGSA, affirming our standards in governance and sustainability. During the year, sustainability remained firmly embedded within our strategic and governance processes. As the Sustainability Strategy 2021–2025 approached its conclusion, the Board guided the development of the Sustainability Strategy 2026–2030 to ensure smooth continuity and alignment with the Group’s long-term direction. We also formally published our Commitment to Net Zero GHG Emissions by 2050, reaffirming our intention to decarbonise across all aspects of our operations and value chain. This assurance aligns with internationally recognised frameworks, including the Paris Agreement, the United Nations Sustainable Development Goals (SDGs) and the International Maritime Organization (IMO)’s GHG reduction targets, ensuring that our transition pathway remains credible and globally relevant. Sustainability reporting and performance measurement were further strengthened during the year to align with emerging global standards, including the International Sustainability Standards Board (ISSB) framework, reinforcing our commitment to transparent and decision-useful disclosures. Beyond environmental priorities, we remain committed to nurturing future maritime professionals. Since 1977, Akademi Laut Malaysia (ALAM) has trained more than 15,000 seafarers to uphold professional standards across the sector. Our Cadet Sponsorship Programme equips local youth for maritime careers, strengthening Malaysia’s talent pipeline and contributing to long-term industry resilience. We also recognise the importance of sustained collaboration with customers, regulators and industry participants. These long-term partnerships underpin stability across the ecosystem and reinforce the reliability of the global energy supply chain in which MISC operates. FORGING AHEAD RESPONSIBLY Looking ahead, we remain confident in the strength of the Group’s portfolio and its ability to adapt to a complex operating environment influenced by new developments in geopolitics, policy and regulations. Our priority will be to sustain earnings quality, preserve balance sheet resilience and maintain execution excellence across the organisation. Transition initiatives will continue to advance in a measured manner, aligned with commercial viability and supported by organisational capability, ensuring that the Group is well positioned for future opportunities without compromising the integrity of its core operations. Over the coming year, disciplined capital deployment, capability development and sound, independent judgement will anchor our priorities as we remain attentive to emerging risks and opportunities while safeguarding long-term value in the interests of all stakeholders. For more information, please refer to Corporate Governance Overview Statement on pages 172 to 195.
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 20 www.miscgroup.com 21 www.miscgroup.com #deliveringProgress PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER’S MESSAGE We secured new contract awards across all business segments during the year, underscoring the breadth and competitiveness of our portfolio. DELIVERING PROGRESS TOWARDS OUR MISC 2030 AMBITION Despite ongoing uncertainty, we continued to make steady and significant progress in all three pillars of the MISC 2030 Ambition. We strengthened our Resilient Core, progressed on the Profitable New Energy Business and advanced our Decarbonisation initiatives to ensure the long-term competitiveness and sustainability of our business. 2025 was a strong year for MISC. We delivered solid financial results while continuing to make significant progress across the three pillars of our MISC 2030 Ambition. During the year, we continued strengthening our core businesses while advancing selected new energy initiatives and reducing emissions through fleet renewal and operational improvements. These efforts have further enhanced earnings visibility and cemented the Group’s foundation for sustainable long-term growth. PROFIT BEFORE TAX NET CASH GENERATED FROM OPERATING ACTIVITIES FOCUSED EXECUTION AMID VOLATILITY AND UNCERTAINTY In 2025, volatility persisted in our operating environment, shaped by geopolitical tensions and shifting market conditions. In navigating this landscape, our clear priority was to protect and strengthen our business today while preparing MISC for opportunities ahead. We focused on maintaining earnings resilience, preserving strong cash flow and allocating capital with discipline. At the same time, we continued advancing the initiatives under our MISC 2030 Ambition to ensure the Group remains competitive and well-positioned as the maritime landscape evolves. FINANCIAL PERFORMANCE Our consistent execution translated into stronger financial outcomes in 2025. For the financial year ended 31 December 2025, profit before tax rose by 45% to RM1,862.0 million (FY2024: RM1,283.5 million), supported by stronger Offshore segment contributions and lower impairment provisions compared with the prior year. Net cash generated from operating activities increased to RM5,656.1 million (FY2024: RM4,276.8 million), up 32%, reflecting improved earnings quality and cash generation during the year. The improved performance enabled higher dividends declared to shareholders, underscoring our commitment to delivering sustainable returns while maintaining financial discipline. This strengthened financial position enhances our flexibility to fund capital commitments, pursue targeted growth opportunities and continue advancing the MISC 2030 Ambition with discipline while preserving balance sheet resilience. PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER’S MESSAGE Our Resilient Core remains the backbone of the Group. It provides earnings stability through long-term contracts, disciplined fleet renewal and selective asset monetisation. In 2025, we strengthened the portfolio through the delivery of seven LNGCs to QatarEnergy with consortium partners Nippon Yusen Kabushiki Kaisha (NYK), Kawasaki Kisen Kaisha, Ltd. (K Line) and China LNG Shipping (Holdings) Limited (CLNG), including five vessels delivered ahead of schedule. We commissioned FSU Puteri Delima Satu at the PETRONAS LNG Regasification Terminal Pengerang (RGTP) in Johor, contributing to national gas supply security and completing the project with over 500,000 man-hours recorded without a Lost Time Injury. Importantly, we secured new contract awards across all business segments during the year, underscoring the breadth and competitiveness of our portfolio. Within the Petroleum & Products segment, we secured long-term charters for two LNG dual-fuel Suezmax vessels, completing dual-fuel capability in all our tanker classes. In the Gas Assets & Solutions (GAS) Business segment, long-term charters with PTT Public Company Limited (PTT) for two VLECs expanded our specialised gas transportation capabilities. Our Offshore segment entered the Brunei market through its first FPU project with PCBL, expanding our operating footprint into a new market. MHB also secured wellhead platform EPCIC contracts from VESTIGO, improving the order book for the business. These actions reinforced the strength and reliability of our core businesses, providing stability and financial capacity to support disciplined investment in new energy and decarbonisation initiatives. Resilient Core SP1 ZAHID OSMAN President & Group Chief Executive Officer compared to FY2024 compared to FY2024 45% 32% Dear Stakeholders,
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 22 www.miscgroup.com 23 www.miscgroup.com #deliveringProgress PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER’S MESSAGE PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER’S MESSAGE Building on this strong foundation, we advanced multiple new energy pathways through strategic partnerships and integrated solutions, focusing on capability building and validating commercial pathways ahead of investment decisions. During the year, we progressed our participation in the carbon capture and storage (CCS) value chain through a joint venture with PETRONAS CCS Ventures Sdn. Bhd. (PETRONAS CCS Ventures) and Mitsui O.S.K. Lines, Ltd. (MOL), combining complementary strengths to develop an integrated carbon transport solution. We continued strengthening transition-ready offshore and shipping capabilities. AiPs were secured for an ammonia FPSO concept and an ammonia dual-fuel LR2 tanker, advancing technical readiness for future-fuel applications. In addition, the Zero-Emission Power Station (ZEUS) demonstration project moved into the front-end engineering design (FEED) phase, bringing oxy-fuel combustion with carbon capture closer to execution readiness and expanding our technological capabilities in low-carbon solutions. Alongside strengthening our core businesses and advancing new energy initiatives, we continued making progress on our decarbonisation agenda. In 2025, we achieved a 36% reduction in GHG emissions intensity across our shipping operations compared to our 2008 baseline. These improvements strengthen the long-term competitiveness of our fleet and ensure our assets are commercially relevant as the industry transitions to lower-carbon energy solutions, while supporting MISC’s Net-Zero ambition. Profitable New Energy Business Decarbonisation EMBEDDING SAFETY AND ACCOUNTABILITY At the heart of MISC’s performance are our people. Their professionalism, expertise and dedication enable us to deliver safe and reliable operations every day. Through the Care & Comply principles, we promote a caring mindset towards self and others, and reinforce preventive safety practices and empower frontliners to exercise Stop-Work Authority when required. This is supported by the increased use of data-driven tools to improve risk anticipation and decision-making throughout our fleet, offshore and onshore activities. Talent development remains central to sustaining operational excellence and preparing the organisation for future growth. During the year, we continued investing in capability-building programmes in both our core businesses and emerging areas, including new energy, decarbonisation and next-generation fleet operations, ensuring our workforce is consistently equipped to support evolving business needs. Alongside these efforts, we continued embedding Accountability, Transparency and Efficiency (ATE) throughout the organisation. This strengthens an enterprise mindset and fosters shared ownership and accountability in how we operate and deliver outcomes. AWARDS AND RECOGNITION During the year, MISC continued to receive external recognition that reflects the consistency of our execution, the strength of our governance practices and the reliability of our operations. At the Group level, in addition to the awards highlighted in the Chairman’s Message, MISC received six awards at the Malaysian Society for Occupational Safety and Health (MSOSH) Awards, underscoring the maturity of our safety culture and the strength of our Health, Safety, Security and Environment (HSSE) systems across the organisation. In safety and operational excellence, MISC was recognised by the Chamber of Shipping of America with the Jones F. Devlin Safety Award and the Environmental Achievement Award, recognising fleet-wide safety and environmental performance. In addition, Seri Emperor and Seri Daya received the Maritime and Port Authority of Singapore’s Safety@Sea Awards for Exceptional Maritime Safety. Our decarbonisation efforts were also recognised, with AET receiving the Maritime Singapore LowCarbon50 Award for Leadership in Decarbonisation. This recognition reflects the practical application of fleet decarbonisation initiatives and transition-ready solutions within our operations. CARRYING THE ‘DELIVERING PROGRESS’ MOMENTUM INTO 2026 We entered 2026 with encouraging momentum. Early in the year, we secured long-term charters for five newbuild LNGCs with PETRONAS LNG Ltd. (PLL). We were also awarded a contract by ExxonMobil PNG Limited to deliver and operate a Floating Storage and Offloading (FSO) unit in Papua New Guinea, marking our strategic entry into a new producing basin and the country’s first offshore floating facility. Building on the foundations established in 2025 across our Profitable New Energy Business, we have advanced selected initiatives towards Final Investment Decisions (FIDs), illustrating growing commercial maturity and execution readiness across our new energy pathways. We secured a long-term charter for a newbuild LCO₂ carrier with Northern Lights JV DA alongside our consortium partner, K Line, marking our first commercial entry into the carbon transport value chain, with a second charter expected in April 2026. AET also secured a long-term charter for a dual-fuel ethanol-ready dynamic positioning shuttle tanker, supporting lower-emission offshore transportation solutions. In parallel, we will continue executing decarbonisation initiatives across our existing fleet through performance improvements and technology adoption to maintain competitiveness during the transition. Together, these developments position us to carry this momentum through the year as we continue advancing the MISC 2030 Ambition with discipline, consistency and a clear focus on delivering sustainable long-term value. I would like to express our appreciation to the shareholders and stakeholders for their continued trust and support as we continue executing our strategy. Your confidence enables us to act with conviction to drive MISC forward. I also extend my sincere thanks to the MISC Board of Directors for their guidance, oversight and forward-thinking, which reinforce governance and collaborative decision-making. To the Executive Leadership Team, thank you for your commitment and clarity of implementation in turning strategy into outcomes and moving the organisation forward. Most importantly, to our people, both onshore and offshore, I thank you for your professionalism, resilience and unwavering commitment. Your dedication underpins MISC’s operational excellence and our ability to operate safely and reliably, every day. ACKNOWLEDGEMENTS SP2 SP3 Please refer to pages 96 to 130 in the Business Review section for more information on our business operations.
MISC BERHAD INTEGRATED ANNUAL REPORT 2025 SEC 03 KEY MESSAGES 08 05 11 09 06 12 04 10 07 13 01 02 24 www.miscgroup.com 25 www.miscgroup.com #deliveringProgress Meanwhile, the Marine & Heavy Engineering segment's strategic transformation efforts focused on strengthening its core operating model and enhancing project execution capability, positioning the segment to navigate an increasingly uncertain operating environment, capture new opportunities and unlock the full potential of its yard operations. CHIEF STRATEGY & SUSTAINABILITY OFFICER’S MESSAGE We remained focused on executing our Enterprise Strategy to deliver the MISC 2030 Ambition, amid heightened uncertainty and policy fragmentation in global energy markets. The Group strengthened portfolio resilience through prudent capital deployment while advancing energy transition initiatives where clear commercial pathways exist. This ensured that investment decisions remain aligned with long-term value creation, enabling the Group to operate effectively despite market volatility. RAJA AZLAN SHAH RAJA AZWA Chief Strategy & Sustainability Officer CHIEF STRATEGY & SUSTAINABILITY OFFICER’S MESSAGE STRATEGIC EXECUTION THROUGH VOLATILITY The operating environment remained complex, shaped by geopolitical conflicts and evolving trade measures across major economies. Security-related disruptions diverted trade routes and extended voyage distances, affecting tonne-mile demand and fleet deployment, while protectionist policies resulted in broader trade uncertainty. Market conditions varied across our business segments and, accordingly, required disciplined and differentiated responses. In the LNG shipping sector, persistent vessel oversupply and timing gaps in new liquefaction capacity weighed on rates, necessitating strategic fleet optimisation. In response to market uncertainty and complexity in the petroleum shipping sector, we prioritised a secured income strategy to insulate earnings from volatility. In the offshore sector, robust FPSO demand across key producing regions supported project opportunities, with Lease and Operate (L&O) projects more common in the Asia Pacific, while Engineering, Procurement and Construction (EPC) and Build–Operate–Transfer (BOT) projects were more prevalent in Africa and South America. We selectively pursued these opportunities in line with our execution capabilities and risk appetite. In addition, regulatory developments progressed unevenly across jurisdictions. In Europe, the European Union advanced FuelEU Maritime, introducing carbon intensity limits for marine fuels and including shipping under the EU Emissions Trading System (EU ETS), requiring operators to surrender CO₂ emissions allowances. At the global level, while the IMO approved the draft Net-Zero Framework (NZF), the deferral of voting on the adoption of its mid-term measures, including the GHG Fuel Intensity (GFI) standard and market-based measures to October 2026, prolonged uncertainty, affecting the pace and direction of responses across the maritime industry. EXECUTING THE MISC 2030 AMBITION In 2025, the priority was on strengthening the Resilient Core to enhance financial resilience, while progressively advancing new energy and decarbonisation initiatives. Investment decisions prioritised opportunities supported by long-term charter contracts that provide earnings visibility. Participation in emerging value chains was progressed selectively, anchored on regulatory clarity, technological readiness and economic sustainability. SP1 Resilient Core During the year, the Group secured projects across all business segments, reinforcing future earnings through a diversified portfolio. We also focused on project delivery and selective capital recycling to rejuvenate our ageing fleet with more modern vessels. Fleet rejuvenation within the GAS Business segment advanced with the delivery of seven new LNGCs during the year, with a further five deliveries scheduled through 2026. The new, more efficient vessels in the fleet are contracted under long-term employment, replacing expired charters for older steam LNGCs. Within the Petroleum & Products segment, the Group secured dual-fuel Suezmax vessels under long-term charters as part of its fleet renewal. Dual-fuel capability provides a practical pathway to improve efficiency and fuel flexibility while maintaining commercial competitiveness, in line with the industry’s gradual shift toward alternative fuels. In the Offshore segment, the market continues to present opportunities across multiple regions. During the year, MISC secured an FPU project in Brunei under a lease, operate and maintain arrangement, marking the Group’s entry into the country’s offshore market. SP2 Profitable New Energy Business In the energy space, MISC focused on strengthening its readiness in emerging low-carbon value chains through targeted technical validation by securing AiPs for an ammonia FPSO concept and an ammonia dual-fuel LR2 tanker. We also progressed the LCO₂ value chain through partnerships. The Group secured a long-term time charter for an LCO₂ carrier with Northern Lights JV DA in January 2026, in partnership with K Line, marking its first commercial entry into the carbon transport value chain. Within MHB, we have progressed work on the Kasawari CCS and offshore substation platforms under TenneT's 2GW Programme. In February 2026, through AET, the Group signed a shipbuilding agreement for its first hybrid-electric ethanol-ready dynamic positioning shuttle tanker (DPST), further strengthening transition-ready fleet capabilities. INTEGRATING SUSTAINABILITY INTO STRATEGIC DECISION-MAKING AND OVERSIGHT MISC maintains a robust investment risk assessment and capital allocation framework to support investment decisions, with sustainability considerations embedded across ambitions, priorities and risk assessments. In FY2025, further enhancements have been made through the adoption of IFRS Sustainability Disclosure Standards (IFRS S1 and S2), enhancing the systematic consideration of sustainability-related risks and opportunities in strategic, investment and capital deployment decisions. To support this integration, we strengthened governance by sharpening the Board Sustainability & Risk Committee’s (BSRC) oversight of sustainability risks and opportunities. The Committee also oversees the identification, prioritisation and monitoring of these risks, with regular reporting enabling timely intervention and strengthened accountability. Concurrently, environmental, social and governance considerations have been formally embedded within the Group’s Enterprise Risk Management (ERM) framework, with material Sustainability Risks and Opportunities (SROs) assessed alongside traditional business risks. This integrated approach enables consistent prioritisation, clearer escalation and improved visibility of sustainability-related exposures and opportunities, reinforcing disciplined risk management and effective oversight at both Board and management levels. Following the conclusion of the Sustainability Strategy 2021–2025, the Group refreshed its strategic direction to support the next phase of growth. The Sustainability Strategy 2026–2030 builds on progress achieved to date and is anchored on three pillars, namely, Impact, Inclusion and Integrity, guiding how MISC strengthens organisational resilience, creates shared value and upholds robust governance and ethical conduct. CLEAR PRIORITIES, DISCIPLINED EXECUTION Geopolitical and regulatory uncertainties are expected to persist into 2026, shaping a more complex and less predictable operating environment, including recent developments in the Middle East influencing trade flows, energy markets and shipping dynamics. In this context, we will remain agile in calibrating our approach, ensuring the continued resilience of our Enterprise Strategy while delivering progress towards the MISC 2030 Ambition. SP3 Decarbonisation Decarbonisation remains an integral component of MISC's strategy, reflecting our commitment to reducing emissions and responding to evolving regulatory requirements. In 2025, we achieved a 7% year-on-year reduction in shipping fleet GHG emissions intensity, demonstrating clear progress in achieving our MISC 2030 Ambition. The improvement was supported by strategic fleet optimisation and deployment of emissions reduction initiatives implemented during the year. We continued to prioritise practical initiatives that improve emissions performance while maintaining commercial discipline, advancing our decarbonisation pathway in line with customer adoption and policy developments. In parallel, fleet rejuvenation efforts continued, replacing older tonnage with more modern, energy-efficient vessels to improve operational efficiency and further reduce emissions intensity. Please refer to pages 56 to 93 for more information in our Strategic Review section. Dear Stakeholders,
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