Integrated Annual Report 2021

WHO WE ARE AND WHAT WE DO 53years of sterling track record in delivering energy-related maritime solutions and services BBB+ (Stable) Baa2 (Stable) USD7.6 billion Among the world’s STRONG credit rating in the marine transport sector LEADING S&P Global Ratings Moody’s Investors Service Integrated Marine Services Human Capital •• 4,810 employees including 4,516 seafarers Customers •• Internal - MISC Group •• External - Marine transportation industry customers Services Performed •• Shipmanagement, engineering and procurement •• Project management - supervision and consultancy service for dry docking and new building of vessels Revenue Structure •• Shipmanagement and Project Management Service fees •• Maritime consultancy fees Cost Structure •• Operational costs include employee/crew costs, overheads, logistics and personnel travel, professional & IT services, rental 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 •• 69 employees Physical Capital •• 39 vessels •• Two vessels under construction Customers •• PETRONAS Group •• Energy majors •• Energy traders •• Petrochemical companies Services Performed •• Transportation of LNG and ethane •• New LNG asset-based solutions •• Technological solutions for FSU Revenue Structure •• Revenue from time charter contracts Cost Structure •• Operational costs include employee/crew costs, repair and maintenance, materials and supplies, professional and purchased services, and depreciation 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 Gas Assets & Solutions Human Capital •• 185 employees Physical Capital •• 67 vessels •• 11 vessels under construction Customers •• Energy majors •• Refiners •• National oil companies (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 –– Provision 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 include 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 Petroleum & Product Shipping Human Capital •• 173 employees Customers •• PETRONAS Group •• Pengerang Terminals •• Domestic and international shipping companies Services Performed •• Operator of ports and terminals •• Pilotage, mooring master, loading master and marine controller services •• Jetty maintenance services •• Single Point Mooring (SPM) 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) Revenue Structure •• Fees from port terminal management and maritime services Cost Structure •• Operational cost include salaries and wages, rental and lease, business travelling, material and supplies, and professional fees Competitive Advantage •• Strong industry reputation, with more than two decades of 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 Port Management & Maritime Services Human Capital •• 418 employees Physical Capital •• 12 offshore floating solutions •• One FPSO under construction Customers •• PETRONAS Group •• Energy majors •• NOCs Services Performed •• Engineering, procurement, construction, installation, commissioning, operations and maintenance, decommissioning and demobilisation (EPCICODD) solutions •• Own, operate and maintain offshore floating assets to extract, store and offload hydrocarbons to shuttle tankers Revenue Structure •• Revenue from time charter contracts and bare boat charter contracts •• Revenue from operations and maintenance of offshore floating assets Cost Structure • Operational costs include employee/crew costs, repair and maintenance, materials and supplies as well as professional and purchased services and depreciation Competitive Advantage •• Highly skilled workforce •• Strong relationships of mutual trust with key Asia-based partners, subcontractors and suppliers •• Outstanding contractual deliveries Offshore Business Human Capital •• 2,649 employees Physical Capital •• Dry Dock 1,2 and 3 •• Fabrication yards •• Land berth cranes Customers •• PETRONAS Group •• Energy majors •• Production sharing contract (PSC) contractors •• EPCC contractors (offshore and onshore) •• Petrochemical companies •• Domestic and international shipping companies 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 and upgrading works Marine & Heavy Engineering Human Capital •• 168 employees, including 65 academicians Customers •• Students with SPM certificates •• Marine Officers •• Participants from shipping companies and oil and gas players Services Performed •• Conducts Pre-Sea Diploma, Post-Sea, Ratings and Modular Programme •• 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 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 Maritime Education & Training 106 Modern fleet of LNG, Petroleum and Product vessels assets Reputable FPS owner-operator with 8,851 A diverse and inclusive workforce of employees from over 47 nationalities 12 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 comprising direct and indirect costs, fixed and variable costs, and depreciation Competitive Advantage •• Own and operate one of the region’s largest marine and heavy engineering facilities •• The only Malaysian yard with the capacity and skills to undertake complex offshore mega structures and marine facilities projects WHO WE ARE shipping conglomerates with a market capitalisation of MISC Berhad 10 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 11