MISC Integrated Annual Report 2020

Introduction / Who We Are / Key Messages / Highlights / Strategic Review //////// MISC Berhad / Integrated Annual Report 2020 1 Section 16 MISC Berhad / Integrated Annual Report 2020 1 17 //////// Strategic Review / Highlights / Key Messages / Who We Are / Introduction Section WHO WE ARE AND WHAT WE DO LNG Asset Solutions and Petroleum & Product Shipping segment commission, acquire or in-charter LNG carriers and tankers Complete/full range offshore platform EPCIC services for offshore & onshore construction Comprehensive marine repair & refurbishment LNG Asset Solutions and Petroleum & Product Shipping segment transport energy resources for customers - LNG, crude and petroleum products Trained seafarers in Eaglestar manage and operate LNG and petroleum vessels Offshore Business operates offshore oating solutions Offshore Business provides comprehensive EPCIC solutions, from design to operations and decommissioning of offshore assets ALAM provides maritime education and training for seafarers MMS provides port management and maritime services 52 years of proven experience in delivering energy related maritime solutions and services BBB+ (Stable) Baa2 (Stable) 14 assets FPSO/FSO owner-operators with 8,600 International and diverse workforce of more than sea and shore employees from various nationalities USD 7.7 billion Among the world’s shipping conglomerates by market capitalisation at 5 top Strongest credit rating in marine transport sector S&P Global Ratings Moody’s Investors Service Maritime Education & Training Integrated Marine Services Physical Capital • 14 offshore floating solutions • One FPSO under construction Customers • PETRONAS Group • Energy majors • National oil companies (NOCs) Human Capital • 360 employees Revenue Structure • Revenue from time charter contracts and bare boat charter contracts • Non-shipping income generated from operations and maintenance of offshore floating assets Cost Structure • Operational costs such as employee/crew costs, repair and maintenance, materials and supplies as well as professional and purchased services and depreciation Services Performed • Engineering, procurement, construction, installation, commissioning, operations and maintenance, decommissioning and demobilisation (EPCICODD) solutions • Operate offshore assets to extract, store and offload hydrocarbons to shuttle tankers • Provide operations and maintenance services for offshore floating assets Competitive Advantage • Highly skilled workforce • Strong relationships of mutual trust with key Asia-based partners, subcontractors and suppliers • Outstanding contractual deliveries Physical Capital • Dry Dock 1,2 and 3 • Fabrication Yards • Land Berth Cranes Human Capital • 2,625 employees Services Performed Heavy Engineering Segment • Wide range of EPCIC services for offshore facilities • Fabrication services for onshore modules and facilities Marine Segment • Conversion of offshore facilities in one location • Repair and refurbishment for various types of vessels, rigs and marine facilities Plant Maintenance and Turnaround • Plant shutdown and maintenance • Routine maintenance • Upgrading works Revenue Structure • Construction and conversion contract revenue based on stage of completion • Marine repair and refurbishment revenue • Plant maintenance and turnaround revenue Cost Structure • Operational costs (direct and indirect costs, fixed and variable costs, depreciation) Customers • PETRONAS Group • International oil companies (IOCs) • Production sharing contract (PSC) contractors • EPCC contractors (offshore and onshore) • Petrochemical companies • Domestic and international shipping companies Competitive Advantage • Owns and operates one of the region’s largest marine and heavy engineering facilities • The only Malaysian yard with the capacity and skills to see through complex offshore mega structures and marine facilities projects Services Performed • Operator of ports and terminals • Pilotage, mooring master, loading master and marine controller services • Jetty maintenance services • Logistic support services • Ship vetting services • Offshore vessel inspection services • Marine assurance and consultancy services which includes ship screening, Tanker Management and Self Assessment (TMSA), Offshore Vessel Management and Self Assessment (OVMSA) and Roving Marine Marshall Services (RMMS) Customers • PETRONAS • Pengerang Terminals • Domestic and international shipping companies Human Capital • 171 employees Revenue Structure • Revenue from contract agreements and service fees Cost Structure • Operational cost such as salary and wages, rental and lease, business travelling, material and supplies as well as professional fees Competitive Advantage • More than two decades of reputable experience in port and terminal operations and maritime services • Own proprietary digital applications for Vessel Inspection System (VIS) and Offshore Support Vessel Inspection System (OSVIS) • The acknowledged and preferred operator for the Terengganu Crude Oil Terminal, Miri Crude Oil Terminal, Bintulu Crude Oil Terminal and Sabah Oil and Gas Terminal Competitive Advantage • Sterling reputation for operational excellence • Consistent track record of reliable and on-time cargo deliveries • Leveraging on our proven industry experience to successfully expand into the emerging sectors of LNG bunkering vessels and very large ethane carriers Human Capital • 66 employees Physical Capital • 33 vessels • Four vessels under construction Revenue Structure • Revenue from time charter contracts with customers Cost Structure • Operational costs such as employee/ crew costs, repair and maintenance, materials and supplies as well as professional and purchased services and depreciation Services Performed • Transportation of LNG • New LNG asset-based solutions • Transportation of ethane Customers • PETRONAS • Energy majors • Energy traders Human Capital • 207 employees Physical Capital • 76 vessels • 9 vessels under construction Customers • Energy majors • Refiners • NOCs • Energy traders Services Performed Conventional Services • Transportation of crude oil, petroleum products and chemicals Specialised Services • Owner and operator of DPSTs in the North Sea and Brazil • Owner and operator of lightering services in the US Gulf and Latin America Revenue Structure • Revenue from time charter contracts, voyage charter contracts, contract of affreightment, lightering, and other shipping related income Cost Structure • Operational costs such as bunker (marine fuel), employee/crew costs, repair and maintenance, materials and supplies, depreciation as well as professional and purchased services Competitive Advantage • Advancing green shipping solutions with modern and technologically advanced fuel-efficient vessels • Industry pioneers in the fields of modular capture vessels and LNG dual-fuel vessels • Focused people investments to expand their sea and onshore skills and capabilities Human Capital • 4,638 employees including 4,348 seafarers Customers • MISC Group • External Services Performed • Ship management, engineering and procurement as well as project management (supervision and consultancy service for dry docking and new building of vessels) Revenue Structure • Shipmanagement fees • Maritime consultancy fees Cost Structure • Operational costs such as employee/ crew costs, overheads, logistics and personnel travel, research & development, materials and supplies, professional services and depreciation Competitive Advantage • Specialised experience in niche areas of LNG bunkering vessels, very large ethane carriers, floating storage and regasification, dynamic positioning shuttle tankers, dual-fuel crude tankers and modular capture vessel • Deep knowledge of regional shuttle tanker trade in the Brazilian basin and Northern Europe • Globally renowned shipmanagement company, with stellar track record for the highest quality and standards of delivery Human Capital • 196 employees including 76 academicians Services Performed • Conducts Pre-Sea Diploma, Post-Sea, Ratings and Modular Programme • Offers research and consultancy services Revenue Structure • Tuition fees / Course fees • Research and consultancy fees Cost Structure • Faculties’ salaries and benefits • Training and learning facilities costs Customers • Students with SPM certificates • Marine Officers • Participants from shipping companies Competitive Advantage • Providing a broad spectrum of maritime education and training, beyond Standards of Training, Certification and Watchkeeping (STCW) • Research and consultancy expert, providing flexible solutions encompassing the total lifecycle of port development Marine & Heavy Engineering Offshore Business Port Management & Maritime Services LNG Asset Solutions 109 Modern fleet of LNG, Petroleum and Product vessels Petroleum & Product Shipping

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