MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 70 as implementing measures that brought XV FORVHU WRZDUGV IXOƓOOLQJ RXU VWUDWHJLF mandate and our Vision of consistently providing better energy related maritime solutions and services. This year’s Annual Report conveys the theme, “Unity in Diversity” . This highlights our efforts, not only to foster more effective teamwork among our people, but also to intensify synergistic collaboration among our businesses and energy shipping industry players. Today, as a result of the many initiatives undertaken and the strong transformation foundations laid down over these past few years, MISC is well positioned to leverage on a host of growth opportunities as well as meet market challenges. We remain optimistic that the measures we have taken to streamline and future-proof our businesses, together with the Group’s solid presence in the markets we operate in, will continue to strengthen our growth momentum and propel us forward. CHAIRMAN ’ S STATEMENT DEAR VALUED SHAREHOLDERS, On behal f of t he Board of D i rectors, I am pleased to present you t he Annual Report and Aud i ted F i nanc i al Statements of MISC Berhad and i ts subs i d i ar i es for t he f i nanc i al year ended 31 December 2017. In 2017, MISC Berhad, like other industry players, had to contend with weak market conditions in the energy shipping and offshore Oil & Gas segments. The year ZDV FKDUDFWHULVHG E\ D ŴXUU\ RI JOREDO geopolitical and economic issues. The low oil price environment that continued to impinge negatively on industry activities, only began to show signs of a recovery towards the latter part of 2017 when oil hit USD70 per barrel. Industry players also had to cope with project scarcity, weaker charter rates and the termination of client contracts. On top of this, shipowners had to make huge investments on their vessels to comply with a host of mandatory environmental regulations. All in all, 2017 was another challenging business year for the shipping industry with no solid turnaround in any of the segments. Come 2018, the global economy is expected to return to its potential for WKH ƓUVW WLPH LQ D GHFDGH VXSSRUWHG by a rebound in investment and trade. However, substantial downside risks remain, including the possibility of ƓQDQFLDO VWUHVV LQFUHDVHG SURWHFWLRQLVP and continuing geopolitical tensions. Amidst this unpredictable operating environment, the MISC Group continued to implement measures to shore up our defences, once again demonstrating our resilience. The Group’s resilience is underpinned by our strategic focus, highly capable talent pool, and above all, a culture of continuous improvement within our operations as well as an emphasis on innovation across the Group. While our efforts to grow our business met with some small success due to the dearth of available projects, we did, however, DFKLHYH VHYHUDO ƓUVWV IRU WKH *URXS 7KHVH included the successful completion of ƓUVW RI PXOWLSOH 6KLS WR 6KLS 676 /1* WUDQVIHUV WKH ƓUVW FRPPHUFLDO FDUJR ORDG WR WKH 5HJDVLƓFDWLRQ 7HUPLQDO LQ 3HQJHUDQJ -RKRU DQG GHOLYHU\ RI WKH ƓUVW LR2 product tankers. The year also saw us IXUWKHU GHƓQLQJ RXU EXVLQHVV IRFXV DV ZHOO EARNINGS PER SHARE (EPS) REVENUE INCREASED BY 5% COMPARED TO 2016 TOTAL REVENUE RM 10,068.2 million +5% 44.4 sen