STRATEGIC REVIEW DELIVERING OUR STRATEGY In 2021, MISC executed our five-year rolling business plan and our Sustainability Strategy 2021 – 2025 to deliver value for our business and stakeholders. Towards enhancing our corporate value, we have diligently focused on strengthening the core by maximising cash from existing assets while accelerating our diversification into new asset classes and commercialising future options to sustainably generate cash for the Group. Sustainability Pillars Key Focus Areas Strategic Priorities Key Achievements Reference to Other Sections To achieve growth in a predictable manner, and through recurring sources of cash flow Gas Assets & Solutions segment • Maximising cash generation by: » » Strategically allocating our capex on new projects that will generate a secured and recurring cash flow » » Ensuring delivery of projects under construction into cashgenerating assets as planned • Identifying and developing new maritime solutions and/or technologies • Obtained delivery of five remaining units of very large ethane carriers (VLECs) on time charter to Satellite Chemical Co. Ltd. (STL) and two LNG carriers co-owned with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) on time charter to Diamond Gas International Pte. Ltd. Gas Assets & Solutions Business Review on pages 122 to 125 Petroleum & Product Shipping segment • Strengthening our secured income stream and improving cash flow through rejuvenation and right-sizing of the fleet to reduce our exposure to cyclical business trends • Building strong foundations to enhance our brand reputation as an environmentally-focused organisation that provides low carbon maritime solutions • Secured long-term time charters for three newbuild LNG dual-fuel VLCCs with Shell International Eastern Trading Company (SIETCO), reaffirming our standing as a leading provider of environmentallyfriendly shipping solutions • Recognised with the SRS (Singapore Registry of Ships) Ship Owner of the Year Award presented at the Singapore International Maritime Awards (IMA) which recognises an outstanding owner of quality Singapore registered ships taking into account fleet size, growth, operational excellence, sustainable contribution to human capital development both ashore and at sea • A total of 50 ships from AET were awarded the Environmental Achievement Awards by the Chamber of Shipping of America (CSA), reflecting industry recognition of our stringent HSSE and environmental protection measures • The CSA awarded AET the Jones F. Devlin Awards in recognition of its outstanding safety records for a combined 48 ships • The Apostleship of the Sea of the United States of America (AOS-USA) via the Port Arthur Seafarer’s Center recognised AET with The Maritime Samaritan Award for the extraordinary efforts AET made to repatriate crews safely during the pandemic in the Western Gulf of Mexico • AET received the SKA rating of Gold awarded by Royal Institute of Chartered Surveyors (RICS) in recognition of the sustainable fit-out of its new London office through an environmental assessment method, benchmark and standard Petroleum & Product Shipping Business Review on pages 126 to 135 Offshore Business segment • Enhancing earnings creation by extending existing contracts, and focusing on strategically-targeted clients and allocating capex on new projects that will generate secured and recurring cash flow • Ensuring successful project execution • Secured contract extensions for four assets - FPSO Kikeh, FPSO Ruby II, FSO Puteri Dulang, and FPSO Bunga Kertas • In December 2021, OBU achieved commendable occupational safety and health performance, with remarkable improvements in Occupational Safety & Health processes through sound Safety and Health Management System. Additionally, it obtained the Malaysian Society for Occupational Health & Safety (MSHOH), Gold Class 1 Award – FSO Orkid Offshore Business Business Review on pages 136 to 141 Our approach integrates all our business’ material sustainability considerations into our business strategy by focusing on the five sustainability pillars. This approach ensures that we continue to deliver financial value for our shareholders, whilst also generating positive outcomes that benefit our customers, business partners, employees and communities. It is also aligned with the goal of MISC 2050 strategy, which is seeing us embrace change and innovation to transition our business towards a decarbonised future. Financial MISC Berhad 86 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 87
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