MISC Integrated Annual Report 2020

Introduction / Who We Are / Key Messages / Highlights / Strategic Review //////// MISC Berhad / Integrated Annual Report 2020 1 Section 26 MISC Berhad / Integrated Annual Report 2020 1 27 //////// Strategic Review / Highlights / Key Messages / Who We Are / Introduction Section We celebrated our 50 th anniversary in 2018, marking five decades of growth, resilience and commitment towards excellence. This period marks the continuation of MISC’s journey that is driven by our People with their unwavering Passion to push boundaries and explore the Possibilities that lie ahead. Despite an intensely challenging year in which the COVID-19 pandemic ravaged through the globe and the oil market suffered another downturn, MISC not only kept moving, we charted a number of firsts during 2020. KEY MILESTONES After weathering several years of severely challenging conditions in the shipping industry, we took the difficult decision to exit from the liner business in 2011 as well as to divest our non-core businesses (such as the land logistics and tank terminal business), a process which continued until 2017. MISC became a constituent of the FTSE4Good Bursa Malaysia Index, a testament to our remarkable sustainability performance. We also refreshed our Vision, Mission Statements and Tagline as well as enhanced our logo. During this period, MISC Group’s shipmanagement units were integrated into a single entity known as Eaglestar. PETRONAS Maritime Services Sdn. Bhd. became part of MISC Group and now known as MISC Maritime Services Sdn. Bhd. (MMS). Reaping success after a multi-year journey of rigorous preparation, we secured our first major deepwater FPSO project in Brazil from a multinational oil and gas corporation. This ushers in a new era for MISC through this complex offshore project that will ultimately lay the foundation for future international projects of such size and complexity. Signifying our entry into China and the ethane maritime transport market, MISC took delivery of Seri Everest , the first of six newbuild very large ethane carriers (VLEC), the largest vessels of its kind, acquired with long-term charters to Zhejiang Satellite Petrochemical Co. Ltd. Through our joint venture with Avenir, MISC and Eaglestar embarked on our maiden foray as the region’s first commercial operator and shipmanager for the dual-purpose LNG bunker vessel (LBV), the Avenir Advantage . Towards the end of the year, MISC through MHB successfully completed and commenced operations at Dry Dock 3 located at MMHE West Yard in Pasir Gudang, Johor. For more details about our achievements in 2020, please refer to pages 52 to 55. This strategic rebalancing of our business portfolio allowed us to channel our resources on our four core businesses, namely LNG shipping, petroleum shipping, offshore and heavy engineering business, and take advantage of other opportunities within the energy and maritime industry. MMHE was listed on the main market of Bursa Securities as Malaysia Marine and Heavy Engineering Holdings Berhad (MHB). During this period, MISC delivered the Gumusut- Kakap semi-submersible FPS, Asia’s largest facility for deepwater development. The Group also launched our first two LNG floating storage units (FSUs) for Malaysia’s first regasification terminal in Sungai Udang, Melaka. AET successfully operationalised its dynamic positioning shuttle tanker (DPST) business in Brazil. MISC took delivery of our first fleet of Moss-type LNG Carriers, the Seri C Class. The period also saw AET taking delivery of its first modular capture vessel (MCV), Eagle Texas . MISC joined the ranks of global maritime industry players as a Strategic Partner of the Global Maritime Forum (GMF), committed to unleashing the potential of the global maritime industry to increase sustainable long-term economic development and human wellbeing. We have been pursuing efforts towards sustainable growth in the long term by developing a healthy pipeline of new projects as well as winning the trust and confidence of our stakeholders. MISC has also received numerous accolades which recognised our excellence in corporate governance, investor relations, sustainability and HSSE performance. We became a member of Getting to Zero Coalition by GMF, leading the push for international shipping’s decarbonisation. We broke new grounds within the industry through the deployment of LNG dual-fuel vessels and have joined forces with other industry players to develop new zero-carbon fuel technology that reflects our pledge in upholding sound environmental stewardship. 2009-2013 WEATHERING THE STORM 2014-2017 JOURNEY OF REBUILDING & DISCOVERY 2018-2019 2020 SILVER LININGS IN A TURBULENT YEAR EMBRACING OPPORTUNITIES