MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 12 03 04 05 10 SEC 07 BUSINESS REVIEW 06 13 01 02 114 www.miscgroup.com 115 www.miscgroup.com #deliveringProgress MARINE & HEAVY ENGINEERING MOHD NAZIR MOHD NOR Vice President, Marine & Heavy Engineering MARINE & HEAVY ENGINEERING 2025 has been a year of change and steady progress for Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). We have transformed the way we work, becoming a more agile, better-connected organisation, capable of delivering for our customers in a constantly evolving industry. This strategic transformation has sharpened our focus, streamlined operations and improved cost management. These efforts allowed us to maintain a healthy balance sheet while navigating the challenges of an unstable economic environment. Our people’s resilience and adaptability were central to this success. Key collaborations with PETRONAS and other strategic partners opened new opportunities and allowed us to deliver integrated solutions. This spirit of enterprise synergy has helped unlock the full potential of our yard operations. The Heavy Engineering sub-segment continues to maintain stable performance, underpinned by disciplined execution, sharper risk management and a renewed focus on delivery certainty. During the year, we successfully delivered all three CPOC Phase 6 platforms and secured new awards from Vestigo Petroleum Sdn. Bhd. (VESTIGO), reflecting continued client confidence in our ability to execute safely and on schedule. Several complex projects such as Jerun and Rosmari Marjoram were successfully closed-out, demonstrating our proactive planning and commercial discipline. Execution momentum was sustained across ongoing developments, including Kasawari CCS and offshore substation platforms under TenneT’s 2GW Programme, where we continues to manage project risk to preserve execution continuity. Together, these achievements reinforce Heavy Engineering as a core contributor to our resilience, reputation and long-term value creation. The Marine sub-segment recorded another year of strong performance, reflecting disciplined execution, careful planning and a consistent focus on quality. During the year, our teams rose to the challenge, delivering 87 vessels in total, including 26 LNGC repairs, with 20 completed ahead of schedule. This was achieved without compromising quality standards. Our average Customer Service Index rating for the year stands at 8.9, with 18 vessels attaining a perfect score of 10. These results demonstrate the professionalism of our workforce and reinforce client confidence in our ability to deliver reliably. This performance also strengthened our standing in the global marine services market. According to Clarksons Research, we improved our global ranking from position 5 in 2024 to position 2 in 2025 for LNG carrier services. These rankings are not an end in themselves. They reflect consistency, capacity and the trust that shape client decisions, contract pipelines and long-term enterprise value. Looking ahead, we are well-positioned to capitalise on opportunities in energy transition and sustainable marine solutions. With a strong foundation in place, we are ready to support the Group’s ambitions and continue earning the trust of our partners and customers. KEY ACHIEVEMENTS BUSINESS HIGHLIGHTS Operating Profit (RM million) 2025 115.6 2024 141.0 Revenue (RM million) 2025 1,976.3 2024 3,608.6 18% of 2025 Group Revenue Yard Utilisation Drydock Utilisation 2024 74% 2024 69% 2025 2025 90% 86% KEY FINANCIAL HIGHLIGHTS
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