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.
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