MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 90 www.miscgroup.com 91 www.miscgroup.com #deliveringProgress SUSTAINABILITY AS A DECISION LENS UNDER MISC 2030 AMBITION MISC 2030 Ambition charts a course to strengthen predictable cash flows from core businesses while reshaping the portfolio for a lower carbon future. Sustainability is embedded into decision-making, informing how capital is allocated, how assets are renewed and how risk is managed across the enterprise. Across four interconnected pillars, sustainability considerations convert long-term ambition into structured financial decisions, portfolio shifts, capability development and disciplined oversight. Together, they define how the Group competes and adapts over the decade ahead. FINANCIAL PILLAR In 2025, MISC continued to advance its MISC 2030 Ambition by strengthening earnings visibility and deploying capital in a disciplined manner to enhance the resilience and competitiveness of its asset base amid evolving environmental, regulatory and market conditions. Long‑term contractual arrangements across the GAS Business, Petroleum & Products and Offshore segments provided stable and predictable cash flows, supporting the effective stewardship of financial capital and enabling measured growth, including selective investments in emerging new energy businesses. Capital allocation decisions were informed by lifecycle value considerations, emissions‑reduction initiatives such as the adoption of dual‑fuel capabilities, and the anticipated regulatory landscape, underpinned by a five‑year rolling plan and robust governance and risk‑management frameworks. This approach preserved balance sheet strength while supporting sustainable operational performance over the long term. Alongside the optimisation of its core portfolio, the Group progressed its strategic diversification into new energy opportunities through partnerships and project development, including ammonia and LCO₂ carriers, complemented by continued advancement of carbon capture and storage and offshore wind initiatives. These initiatives support the development of future‑ready capabilities and reflect the Group’s commitment to aligning its portfolio with the energy transition. Collectively, this balanced approach enhanced near‑term business resilience while positioning the Group to create sustainable value over the medium and long term for its stakeholders. Securing Sustainable Returns and Strategic Diversification into New Energy Opportunities SUSTAINABILITY AS A DECISION LENS UNDER MISC 2030 AMBITION ENVIRONMENTAL PILLAR Across our operations, 2025 marked continued advancement in translating climate ambition into operational execution. We formalised our net-zero GHG emissions by 2050 commitment and progressed our decarbonisation pathway through fleet rejuvenation and emissions reduction initiatives. These efforts were undertaken alongside strengthened governance mechanisms to address emerging regulatory requirements under the IMO and EU frameworks, ensuring our transition remains disciplined and commercially grounded. Beyond decarbonisation, we advanced resource stewardship across the Group. Circular economy principles were embedded more deeply within our waste management practices, ship recycling standards and industrial collaborations, reinforcing responsible lifecycle management of our assets. Performance in hazardous waste recovery and material reuse reflects the operationalisation of our refuse, reduce, reuse and recycle (4R) framework across both shipping and shore-based operations. Recognising that our core business operates at sea, we also strengthened our approach to marine biodiversity management through science-based assessments, precautionary operational controls and targeted conservation programmes. Together, these actions reflect an integrated approach to environmental stewardship, balancing regulatory compliance, operational resilience and long-term ecosystem responsibility. Decarbonisation and Environmental Stewardship KEY HIGHLIGHTS KEY HIGHLIGHTS Stronger financial performance in 2025 against 2024 results. • 45% increase in Profit Before Tax • 32% increase in Cash Flows from Operations Secured contracts across all four core segments. Demonstrated strong project execution through the timely delivery of seven LNGCs and one FSU during the year. Progress participation in the CCS value chain through a joint venture with PETRONAS CCS Ventures and MOL. Achieved a 36% reduction in shipping fleet GHG emissions intensity against the 2008 baseline. Established MISC's Committment to Net-Zero GHG Emissions by 2050 which applies across all aspects of our business reinforcing our dedication to ensure MISC continues to decarbonise operations throughout the value chain. Successfully maintained our annual hazardous waste reduce, reuse and recycle (3R) rate above 95%. Established MISC Position on Nature and Biodiversity, a framework to guide how we identify, manage and mitigate nature-related risks and impacts accross our operations.
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