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
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