Overview

The maritime and energy sector is largely cyclical in nature, sensitive to the fluctuations of the prevailing economic conditions and market sentiments, which can affect our businesses undesirably. In 2016, despite the difficult market conditions, MISC once again proved its resilience as evidenced by the commendable financial and operational performance. We are proactively taking steps to streamline and bolster our businesses in line with our MISC2020 strategy, enabling us to adapt quickly to flagging market conditions in the energy shipping and offshore oil & gas segments.

Strategy

In line with our mission ‘to drive sustainable value for our shareholders’ and in our understanding of the importance of engaging and keeping our shareholders well-informed, our Shareholders Strategy was developed to ensure the delivery of a broader, structured and more consistent engagement activities with our shareholders. This will be further supported through proactive engagement activities and in the provision of insights on the Group’s business performance, strategies and corporate development, which takes place on a regular basis.

Mission

To drive sustainable value for our shareholders

 

Objectives

Objectives

  • Engagement
  • Education
  • Communication
Objectives

Our 2020 Targets

Greater visibility to shareholders through broader engagement activities

 

2016 Performance

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  • For the financial year ended 31 December 2016 (FY2016), Group revenue of RM9,597.2 million was 12.0% lower than the financial year ended 31 December 2015 (FY2015)’s revenue of RM10,908.4 million.
  • Lower charter rates earned on new contracts in LNG segment and lower revenue from construction contracts in the Marine & Heavy Engineering segment were the main factors for the decrease in Group revenue.
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  • Group operating profit of RM2,228.8 million was 19.9% lower than FY2015 operating profit of RM2,782.6 million.
  • Lower revenue and higher depreciation, arising from the change in estimated useful life of vessels in the current year, were the main causes of the decrease in operating profit.
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  • Group profit before tax of RM2,814.0 million was 9.6% higher than FY2015 profit before tax of RM2,566.9 million
  • The increase in profit was mainly due to the recognition of gains on acquisition and disposal of subsidiaries during the year under review.

Approach

We aim to consistently deliver sustainable returns to shareholders through stable financial performance growth and consistent dividend payout to shareholders. This commitment is evidenced through our established corporate strategy, which integrates good shareholder value creation into our Group’s five-year business plan, well-known as MISC2020. 

MISC2020 comprises two main objectives stretching over a period of five years from 2016 to 2020:

 

5-Year Master Plan

The plan is central to the long term success of our business, the long-term outcome of which is value creation and stable returns for our shareholders and investors.

Apart from our shareholders and investors, this approach will also benefit our immediate and wider stakeholders due to the direct and indirect economic impacts generated as we continue to strengthen our businesses and explore opportunities for growth and expansion. As MISC ventures forth, we will continue to focus on shipping and maritime related oil & gas activities and not stray from our four core business segments. Plans are underway for the Group to tap opportunities in our next growth region, namely the Atlantic Basin, over the next five years.

Click here  for more details on our approach to Shareholders.

Initiatives

MISC remains a proud constituent of the FTSE4Good Bursa Malaysia Index with an improved score.

LNG Dual Fuel Options for AET’s Newbuild Aframaxes                                     

Towards Sustainable LNG Shipping