MISC Integrated Annual Report 2020

///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 164 MISC Berhad / Integrated Annual Report 2020 7 165 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section MARINE & HEAVY ENGINEERING Sustainability Pillar Initiatives and outcomes Shareholders We have maintained strong relationships of trust with our shareholders by proactively communicating company updates on a regular and timely basis. Throughout the year, we provided real-time reports on MHB’s share price, presentations, annual reports, announcements and press releases to shareholders on MHB’s corporate website. As a result of movement restrictions, we held our Annual General Meeting in a virtual setting, with 80 shareholders attending. We also maintained two-way communications with close to 35 analysts, fund managers and shareholders throughout the year through regular one-on-one meetings, small group sessions and analyst briefings. Customers We believe in proactively engaging with our customers and obtaining their feedback with the intention of improving on our customer service. During the year, we requested feedback from our customers at the completion of each project cycle through the MHB Customer Engagement Survey. A total of 75 feedback forms were received from our customers, providing constructive comments and recognitions of our yard’s strategic location, good facilities, experienced managers and supervisors, and excellent communications with the project team and workers. We also maintained continuous engagements throughout the year via other channels such as the International Project Management Conference 2020 where we exchanged ideas and knowledge. MHB also hosted 32 clients during their visits to the MMHE West Yard in Pasir Gudang, Johor to showcase our company’s strength and capabilities while providing an interactive platform to highlight technology and operational innovations. Our clients were involved in numerous quality, health, safety, environment (QHSE) related events such as the HSE Appreciation Day, which underlined our commitment to maintaining high levels of safety and quality throughout all our projects. A notable accomplishment in 2020 was the successful sail away of PCSB’s Bokor Phase 3 Re-Development Project Central Processing Platform (CPP) Topsides at the Baram Delta in Miri, Sarawak. Weighing at 18,995 metric tonnes, the project was delivered with zero LTI. The hook-up, offshore pre- commissioning and commissioning works are currently ongoing and targeted to be completed in the first quarter of 2021. We also completed the fabrication engineering, bulk material procurement, construction and onshore commissioning epC works on the Pluto Water Handling Module for TechnipFMC. The module which weighs at 1,688 metric tonnes was sailed away in the fourth quarter of 2020 with zero LTI, to be installed on Woodside Energy Ltd.’s existing Pluto Alpha Gas Production Platform, located on the North West Shelf of Western Australia, offshore Western Australia. In the first quarter of 2020, we completed the construction, installation and integration of floating storage and offloading (FSO) external turret, FSO Golden Star for Sao Vang and Dai Nguyet Development Project, offshore Vietnam. The work scope of the contract awarded by Promor Pte. Ltd. included construction and commissioning of the external turret. We completed the 1,110 metric tonnes external turret on schedule and with zero LTI. We also sailed away the Bergading Mercury Removal Unit (MRU) Modules under the Bergading CPP-MRU Integration Project for Hess Exploration and Production Malaysia B.V. with zero LTI. The modules were installed and integrated into the existing Bergading CPP in the North Malay Basin. In the fourth quarter of 2020, we successfully achieved the ‘Ready for Start-Up’ milestone as planned, and we have targeted for the remaining work to be completed in 2021. We also completed the hook-up and commissioning (HUC) works for Tembikai Non- Associated Gas (TNAG) offshore wellhead facilities (OWF) as scheduled during the second quarter of 2020. A significant milestone for the year for the Marine Business segment was the addition of Dry Dock No. 3 (DD3) to our existing facilities of two dry docks and one floating dock to conduct repair and refurbishment services on vessels and other marine and oil and gas facilities. With the addition of DD3, our dry docking capacity has expanded to provide multiple comprehensive works on LNGCs, floating production storage and offloading (FPSO) units, FSO units and oil rigs. Please refer to the side-bar accompanying this Business Review for more information on DD3. A total of 12 LNGCs were repaired during the year. Additionally, we secured six en bloc agreements as part of the 61 projects on our books. Throughout 2020, we served 22 new clients comprising 13 domestic clients and 9 international clients. The latter hail from Brunei, United Kingdom, Singapore, Greece, Korea and United Arab Emirates. A key area of focus for MHB in 2020 was the automation and digitalisation of our operations. We enhanced our project monitoring by integrating a spectrum of digital initiatives which enabled us to effectively monitor and control project progress as well as identify potential issues quickly and implement remedial actions in a timely manner. SUSTAINABILITY We continued with our sustainability efforts to create value for our various groups of stakeholders as follows: