MISC Integrated Annual Report 2020

MISC Berhad / Integrated Annual Report 2020 6 129 //// Leadership / Business Review / Financial Review / Sustainability / Strategic Review //// Section //// Strategic Review / Sustainability / Financial Review / Business Review / Leadership //// MISC Berhad / Integrated Annual Report 2020 6 Section 128 FINANCIAL POSITION TOTAL ASSETS The Group’s total assets as at 31 December 2020 of RM51,821.0 million was 0.1% lower than RM51,863.8 million as at 31 December 2019. The decrease in the Group’s total assets were mainly due to the write-off of trade receivables and loss on re-measurement of finance lease receivables relating to the GKL’s arbitration decision as well as impairment loss on ships, offshore floating assets and other property, plant and equipment. However, this was offset by CAPEX incurred during the year. TOTAL LIABILITIES The Group’s total liabilities of RM18,669.9 million as at 31 December 2020 was 15.9% higher than RM16,110.1 million as at 31 December 2019 mainly due to the provision for litigation claims for GKL’s arbitration decision coupled with the increase in interest-bearing loans and borrowings as well as increase in deferred income relating to time charter income paid in advance by customers. EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE CORPORATION Equity attributable to equity holders of the Corporation of RM32,272.8 million as at 31 December 2020 was 7.1% lower than RM34,727.2 million as at 31 December 2019 mainly due to the loss reported in FY2020 following the adverse decision on GKL’s arbitration decision, dividends payments as well as hedging and currency translation loss. GROSS DEBT/ EQUITY RATIO The Group’s gross debt-to-equity ratio of 0.41 as at 31 December 2020 was higher compared to 0.37 as at 31 December 2019 following increase in total interest-bearing loans and borrowings during the year. CASH FLOWS FROM OPERATING ACTIVITES The Group’s cash flows generated from operating activities for the year ended 31 December 2020 of RM5,587.9 million was in line with RM5,579.1 million recorded in the corresponding year mainly due to the steady cash flow generated from the Group’s portfolio of long-term contracts. Details of the Group’s cash flows for the year ended 31 December 2020 can be found on pages 327 to 328 of this Integrated Annual Report. CAPITAL EXPENDITURE REQUIREMENTS The Group’s approved and contracted committed CAPEX as at the end of FY2020 stood at RM6,637.5 million. Based on our strong cash position as at the end of FY2020 and existing funding facilities, the Group should be able to fund the committed CAPEX and pursue growth prospects. Details of the Group’s capital commitments as at 31 December 2020 can be found on page 424 of this Integrated Annual Report. SEGMENTAL PERFORMANCE LNG ASSET SOLUTIONS LNG Asset Solutions segment’s revenue of RM2,652.7 million was RM70.6 million or 2.7% higher than the corresponding year’s revenue of RM2,582.1 million, mainly from higher earning days following fewer dry docking being performed in the current year. The segment’s operating profit of RM1,191.0 million was RM0.6 million higher than the corresponding year’s profit of RM1,190.4 million, mainly from higher revenue as explained above but offset with higher vessel operating costs during the year. PETROLEUM & PRODUCT SHIPPING The Petroleum & Product Shipping segment’s revenue of RM3,863.5 million was RM441.3 million or 10.3% lower than the corresponding year’s revenue of RM4,304.8 million, mainly due to lower number of operating vessels in the current year. The segment’s operating profit of RM469.2 million was RM108.8 million or 30.2% higher than the corresponding year’s profit of RM360.4 million, mainly from higher margin on freight rates in the current year. OFFSHORE BUSINESS The Offshore Business segment’s revenue of RM1,288.5 million was RM202.3 million or 18.6% higher than the corresponding year’s revenue of RM1,086.2 million mainly due to the recognition of construction revenue for an FPSO in the current year. The segment’s operating profit of RM565.8 million was RM70.4 million or 14.2% higher than the corresponding year’s profit of RM495.4 million mainly due to the construction profit recognised for the FPSO mentioned above. MARINE & HEAVY ENGINEERING The Marine & Heavy Engineering segment’s revenue of RM1,567.6 million was RM557.8 million or 55.2% higher than the corresponding year’s revenue of RM1,009.8 million mainly due to higher revenue from on- going heavy engineering projects. The segment posted an operating loss of RM100.0 million, compared to operating loss of RM40.5 million in the corresponding year mainly due to additional cost provisions and associated higher unabsorbed overheads arising from the COVID-19 pandemic. GROUP FINANCIAL REVIEW FINANCIAL CALENDAR FINANCIAL PERIOD 1 January 2020 to 31 December 2020 8 May 2020 8 May 2020 9 June 2020 Announced Paid 13 August 2020 15 September 2020 Announced Paid 17 November 2020 15 December 2020 Announced Paid 18 February 2021 16 March 2021 Announced Paid 13 August 2020 17 November 2020 18 February 2021 ANNOUNCEMENTS OF FINANCIAL RESULTS ANNOUNCEMENTS OF TAX EXEMPT DIVIDENDS 1 st Quarter 1 st Dividend 2 nd Quarter 2 nd Dividend 3 rd Quarter 3 rd Dividend 4 th Quarter 4 th Dividend Revenue Operating Profit LNG Asset Solutions (RM million) (RM million) FY2020 FY2019 Revenue Operating Profit Petroleum & Product Shipping (RM million) (RM million) FY2020 FY2019 Revenue Operating Profit Offshore Business (RM million) (RM million) FY2020 FY2019 Revenue Operating Loss Marine & Heavy Engineering (RM million) (RM million) FY2020 FY2019 2,652.7 2,582.1 1,191.0 1,190.4 3,863.5 4,304.8 469.2 360.4 1,288.5 1,086.2 565.8 495.4 1,567.6 1,009.8 100.0 40.5 Details of the Group’s financial position as at 31 December 2020 can be found on pages 321 to 322 of this Integrated Annual Report.