19. INVESTMENTS IN JOINT VENTURES Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Unquoted shares in Malaysia, at cost 179,287 173,228 173,867 167,803 Unquoted shares outside Malaysia, at cost 193,159 221,280 25,069 24,195 372,446 394,508 198,936 191,998 Share of post-acquisition profits 519,715 423,035 – – Share of other post-acquisition reserves 161,453 132,731 – – 1,053,614 950,274 198,936 191,998 Less: Accumulated impairment loss (6,136) (77,213) – – Carrying amount of the investment 1,047,478 873,061 198,936 191,998 a) During the current financial year, the Corporation has been notified by its joint venture counterpart that MISC Shipping Services UAE (LLC), a 49%-owned joint venture company of MISC Agencies Sdn. Bhd., a wholly owned subsidiary of the Corporation, had completed its liquidation process. b) During the current financial year, MISC Offshore Holdings (Brazil) Sdn. Bhd. (“MOHB”), a wholly-owned subsidiary of the Corporation and SBM Holding Inc. S.A. entered into Share Transfer Agreement on 10 December 2021 for the disposal of its entire shareholdings in SBM Systems Inc. (“SBMSI”) and FPSO Brasil Venture S.A. (“FPSOBV”), comprising 7,399 SBMSI shares and 49 FPSOBV shares for a cash consideration of RM50,306,000 which represents 49% of the total issued share capital of SBMSI and FPSOBV respectively. A gain on disposal of RM25,126,000 was recognised during the financial year. Subsequent thereto, SBMSI, FPSOBV and SBM Operaçoes Ltda, then a wholly-owned subsidiary of FPSOBV, have since ceased to be joint venture companies of MOHB. c) During the current financial year, the Corporation through its subsidiary, Asia LNG Transport Dua Sdn. Bhd. (“ALT Dua”), a 51%-owned subsidiary of the Corporation increased its investment in Diamond LNG Shipping 5 Pte. Ltd. (“DLS5”) and Diamond LNG Shipping 6 Pte. Ltd. (“DLS6 Singapore”) by RM45,631,000 and RM49,452,000 respectively. d) The Group has discontinued recognising its share of losses in a joint venture as the share of losses exceeds the Group’s interest in this joint venture. As such, the Group did not recognise its share of losses of this joint venture in the current year and the Group’s cumulative share of unrecognised losses in this joint venture amounting to RM1,622,000 (2020: RM24,377,000). e) In the previous financial year, the Corporation through its subsidiary, Asia LNG Transport Dua Sdn. Bhd. (“ALT Dua”), a 51%-owned subsidiary of the Corporation entered into a shareholders’ agreement with Mitsubishi Corporation (“MC”) and Nippon Yusen Kabushiki Kaisha (“NYK”) for the acquisition of shares in Diamond LNG Shipping 5 Pte. Ltd. (“DLS5”), a company incorporated in Singapore, from NYK for a cash consideration of RM35,103,000. Subsequent thereto, DLS5 became a 50%-owned joint venture company of ALT Dua and 25% owned by MC and NYK respectively. f) In the previous financial year, pursuant to an Amended and Restated Shareholders’ Agreement entered into on 7 December 2020 between SBM Holding Inc. S.A. (“SBM”) and MISC Offshore Holdings (Brazil) Sdn. Bhd. (“MOHB”), a wholly-owned subsidiary of the Corporation, relating to the operation of joint venture companies for the ownership, conversion, chartering and operation of a Floating Production Storage and Offloading System “Espirito Santo” (“FPSO Espirito Santo”), a new company known as Brazilian Deepwater Production B.V. (“BDPBV”) was incorporated under the laws of The Netherlands. BDPBV is a 49%-owned joint venture company of MOHB and its principal activity is chartering of Floating Production Storage and Offloading System. BDPBV is to replace the original chartering joint venture company named Brazilian Deepwater Production Limited, to own and charter the FPSO Espirito Santo. The total equity investment in BDPBV by the Group amounts to RM24,000. 19. INVESTMENTS IN JOINT VENTURES (CONT'D.) g) In the previous financial year, the Corporation had on 26 March 2020 completed the transfer of business from Diamond LNG Shipping 6 Ltd. (“DLS6 Bahamas”), a company incorporated in The Bahamas, to Diamond LNG Shipping 6 Pte. Ltd. (“DLS6 Singapore”), a company incorporated in Singapore. The business transfer is to align business ownership structure and optimise cost of operations. Subsequent thereto, DLS6 Singapore became a 50%-owned joint venture company of ALT Dua. The principal activity of DLS6 Singapore is owning and chartering of a LNG vessel. DLS6 Bahamas is to be dissolved thereafter. Details of the joint ventures are disclosed in Note 42. The material joint ventures are Malaysia Deepwater Floating Terminal (Kikeh) Limited (“MDFT”) and Malaysia Vietnam Offshore Terminal (L) Limited (“MVOT”). The following tables summarise the financial information of the Group’s material joint ventures, as adjusted for any differences in accounting policies and reconciles the information to the carrying amount of the Group’s interest in joint ventures. The summarised financial information of the material joint ventures are as follows: MDFT MVOT RM’000 RM’000 As at 31 December 2021 Non-current assets 738,548 639,327 Current assets 139,241 136,728 Cash and cash equivalents 688 287,551 Non-current liabilities – (814) Current liabilities (37,171) (353,717) Net assets 841,306 709,075 Year ended 31 December 2021 Profit after taxation/total comprehensive income 382,892 51,639 Included in the total comprehensive income is: Revenue 589,739 152,802 Depreciation and amortisation (193,582) (1,256) Interest income 38 721 Interest expenses – (3,678) Income tax expense (11,842) (3,421) As at 31 December 2020 Non-current assets 823,678 713,825 Current assets 2 114,200 Cash and cash equivalents 10,505 214,498 Non-current liabilities – (907) Current liabilities (39,741) (410,658) Net assets 794,444 630,958 Year ended 31 December 2020 Profit after taxation/total comprehensive income 196,479 65,471 Included in the total comprehensive income is: Revenue 403,806 301,542 Other income 74 209 Depreciation and amortisation (201,049) (248) Interest income 37 254 Interest expenses – (146) Income tax expense (5,991) (2,315) NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 378 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 379 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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