MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 86 www.miscgroup.com 87 www.miscgroup.com #deliveringProgress DELIVERING OUR STRATEGY DELIVERING OUR STRATEGY Under our Profitable New Energy Business strategic pillar, we focused on strengthening technical capabilities, deepening strategic collaborations, and advancing projects toward Final Investment Decisions. These efforts position the Group to participate more actively across carbon, offshore wind, and future fuels value chains, while delivering integrated solutions through our maritime expertise. KEY ACHIEVEMENTS CARBON, OFFSHORE WIND & FUTURE FUELS VALUE CHAINS STRATEGIC PARTNERSHIPS TO MONETISE NEW SOLUTIONS INTEGRATED VALUE OFFERING PROFITABLE NEW ENERGY BUSINESS SP2 DECARBONISATION SP3 Progress under our Decarbonisation strategic pillar continued across key focus areas despite regulatory fragmentation and uneven market readiness across regions. In 2025, shipping fleet GHG emissions intensity was 36% lower than the 2008 baseline and 7% lower than 2024 levels. The improvement was supported by ongoing fleet rejuvenation and energy-efficiency improvements across the existing fleet. We prioritised initiatives that are technically sound, commercially responsible and aligned with the pace of customer adoption and policy development. We continued to advance our decarbonisation pathway through close collaboration with partners, customers and regulators to shape solutions that can scale over time. In parallel, MISC is progressively rejuvenating its fleet, replacing older tonnage with more modern and energy-efficient vessels to further improve operational efficiency and reduce emissions intensity. KEY ACHIEVEMENTS 2008 2023 2024 2025 7.65 5.95 5.25* 4.86 Shipping Fleet GHG Emissions Intensity (gCO₂e/ton-nm) Advanced key projects, positioning MISC as a maritime solutions player in CCS and future fuels: • Approval in Principle (AiP) with SHI from BV for the world’s first ammonia-fuelled LR2 tanker • Secured AiP from the American Bureau of Shipping for Ammonia FPSO concept • ZEUS Demo FEED agreement signed at Energy Asia 2025 • Progressed EPC for offshore substation platforms under Tennet's 2GW Programme Strengthened collaborations with industry partners to bring innovative solutions to market: • AET–Fleetzero Hybrid-Electric Vessel collaboration to retrofit one of AET's lightering support vessels with a plug-in hybrid-electric system Leveraged Group-wide expertise to deliver integrated solutions through strategic LCO₂ value chain collaboration: • LCO₂ Carrier Joint Venture signing establishing Jules Nautica Sdn. Bhd., a collaboration between MISC, PETRONAS CCS Ventures and MOL • Progressed EPCIC for the Kasawari CCS Project For details, refer to Business Review section on pages 96 to 125. RESPONSIBLE SUPPLY CHAIN INITIATIVES Enhanced fleet energy efficiency through operational optimisation and deployment of fuel-saving technologies: • Hydrodynamic Improvements: Installed Propeller Boss Cap Fins (PBCF) and Mewis Duct to improve propeller efficiency, optimise engine load, and reduce fuel consumption and CO₂ emissions • Advanced Coatings: Applied high performance hull and propeller coatings to reduce drag and improve fuel efficiency Progressed emission reduction solutions, including wind-assisted technology: • Wind-Assisted Propulsion System (WAPS): Progressed from concept to active joint development with the Global Centre for Maritime Decarbonisation (GCMD), marking a key step toward scalable low-carbon propulsion solutions across the fleet Advanced adoption and readiness for future fuels, including fuel-flexible vessel designs: • Fuel-Flexible Newbuilds: Advanced vessel designs to enhance readiness for future regulations and future fuels Advanced fleet decarbonisation through strategic investment in dual-fuel and multi-fuel capable vessels: • Deployed LNG dual-fuel tankers: Suezmax, Aframax, VLCC and DPST vessel classes, embedding dual-fuel capability as a core pillar of fleet renewal and decarbonisation strategy ENERGY EFFICIENCY ABATEMENT TECHNOLOGY FUTURE FUELS DUAL-FUEL ASSET INVESTMENT • Ammonia Engine Development: Signed collaboration agreement with WinGD to advance the development of ammonia dual-fuel engines and enhance related crew training. * Data has been restated post-IMO Data Collection System (DCS) verification. The Profitable New Energy Business has made steady progress over FY2023–2025, with CFO contribution not exceeding 5% of total adjusted CFO throughout the period. We will continue to build capabilities and expand participation across the new energy value chain. E1 E2 E6 E7 E8 Key Capitals: Material Matters: Risks: Operating Environment: R10 R11 R1 R9 R3 R7 R2 R4 R6 R8 M1 M2 M10 M3 M4 M5 M6 M7 M8 M9 M11 M12 Key Capitals: Material Matters: Risks: E6 E7 E8 E3 E4 Operating Environment: R5 R6 R10 R3 R8 R2 R7 R11 R4 R9 M1 M2 M10 M3 M4 M5 M6 M7 M8 M9 M11 M12 CFO from New Energy Solutions
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