MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 12 03 04 05 10 SEC 07 BUSINESS REVIEW 06 13 01 02 118 www.miscgroup.com 119 www.miscgroup.com #deliveringProgress FTSE4Good Bursa Malaysia Index • Maintained 4-Star Rating in 2025 Malaysian Industrial Safety and Health Association (MiSHA) • MiSHA Prime Award Platinum (MPA1) • MiSHA Main Award Gold (MMA1) MSOSH Gold Class 1 Award • Petroleum, Gas, Petrochemical & Allied Sectors Category 2025 International Ship and Port Facility Security (ISPS) Code Standards • Best Table-Top Exercise Simulation Award for 2025 11th Shell Malaysia Safety Awards 2025 • Finalist for Upstream Category NAVIGATING THE CHALLENGES IN 2025 AWARDS AND RECOGNITIONS MARINE & HEAVY ENGINEERING MARINE & HEAVY ENGINEERING MILESTONES Delivered major offshore and fabrication milestones on schedule, reflecting disciplined execution and quality assurance • Kasawari Gas Development Project: Achieved Qualified NPA certification • Kasawari CCS: Achieved Mechanical Completion Delivery (MCD) for jacket structure Operational Excellence 1 • CPOC Phase 6: Jengka-D (JKD) achieved First Gas; Jengka-C (JKC), Andalas-D (ADD) and Andalas-E (ADE) platforms sailed away on schedule with zero punch list and zero carry-over work (COW) • VESTIGO Irong Timur, Berantai East and Kurma Manis: Ahead of schedule MAINTAINING FINANCIAL RESILIENCE AMID COST PRESSURES AND MARKET UNCERTAINTIES 1 MITIGATION RESULTS Commercial Discipline and Cost Governance • Strengthening bidding discipline across engineering, procurement and subcontracting • Embedding cost governance and value control across operations • Delivered a second consecutive year of profitability • Recorded a 39% year-on-year increase in cash flow from operations Enhanced Planning and Governance • Established a structured five-year Yard Modernisation Plan • Centralising planning and execution through structured production and delivery controls • Reinforcing governance, quality assurance and asset maintenance • Avoided schedule delays through enhanced microplanning and engineering processes ENSURING CONSISTENT ENGINEERING QUALITY, PRODUCTIVITY AND RELIABLE PROJECT DELIVERY 2 EMBEDDING STRONGER COMPLIANCE AND QUALITY CULTURE WHILE IMPROVING TALENT RETENTION 3 Performance‑Driven Culture • Established a dedicated talent development platform to build functional and leadership capabilities aligned with future needs • Advancing structured cultural transformation and change management initiatives to embed performance accountability • Reinforced new ways of working across the organisation Profitable New Energy Business • Deepen collaboration with hydrogen electrolyser, e-methanol and ammonia technology providers • Pursue selective EPC roles in LNG onshore modular and hydrogen plant developments • Continue pursuing offshore wind opportunities in Europe and Asia • Advance partnerships for marine energy efficiency solutions • Leverage synergies within the PETRONAS–MISC Enterprise to deliver integrated, competitively positioned solutions Decarbonisation • Expand solar installations across MMHE West and East yards to reduce emissions and support 2030 targets • Continue with Responsible Supply Chain (RSC) programme to assess ESG risks of critical vendors to drive Scope 3 decarbonisation efforts across the value chain • Strengthen circular economy efforts by enhancing waste management initiatives Resilient Core • Sustain operational excellence through disciplined execution across bidding, engineering, procurement, quality and asset management • Advance yard modernisation through phased adoption of automation, advanced technologies and digital connectivity to enhance efficiency and competitiveness through 2030 MOVING FORWARD
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