Navigating
A Sustainable
Future Together
Integrated Annual Report 2024
Key Highlights 2024
OPERATIONAL EXCELLENCE
PEOPLE DEVELOPMENT
OPERATING SAFELY & SUSTAINABLY
ESG EXCELLENCE
Member of the S&P Global Sustainability Yearbook since 2023
FTSE4Good Bursa Malaysia Index for 11 consecutive years
Key Message
Chairman’s Message
Dear Stakeholders,
2024 was a defining chapter in MISC’s journey, a year marked by both challenges and strategic milestones that reinforced our commitment to long-term value creation.
We navigated a dynamic and evolving landscape influenced by geopolitical tensions, economic challenges, regulatory demands and the ongoing energy transition. MISC responded with a re-energised strategic focus, operational agility and a steadfast approach to decarbonisation. Through these efforts, we charted the way forward and continued to create value for stakeholders while building a more resilient and future-ready MISC.
DATUK ABU HURAIRA ABU YAZID
Chairman,
Independent Non-Executive Director
Key Message
President & Group Chief Executive Officer’s Message
Dear Stakeholders,
2024 was a pivotal year for MISC, one defined by strategic progress amidst an increasingly complex global environment. The year unfolded against a backdrop of geopolitical and economic uncertainties, from trade flow disruptions due to global conflicts to heightened regulatory demands reshaping the maritime sector. Despite these challenges, MISC remained resilient, responding with agility and a re-energised strategic focus to advance our growth trajectory and deliver value to our stakeholders.
Since assuming the role of President & Group CEO in August 2024, I have had the privilege of witnessing the unwavering dedication of our people firsthand. Their commitment continues to drive our achievements, enabling us to navigate uncertainty with confidence and purpose.
ZAHID OSMAN
President & Group Chief Executive Officer
Chief Strategy & Sustainability Officer’s Message
Dear Stakeholders,
The past year has seen significant shifts in the global economy, geopolitical landscape and energy markets. In this evolving environment, the Group has focused on strengthening core businesses, expanding into new energy markets and advancing decarbonisation efforts. Navigating these changes requires agility, balancing long-term growth with the transition to a low-carbon economy while ensuring resilience in a complex operating landscape.
RAJA AZLAN SHAH RAJA AZWA
Chief Financial Officer’s Message
Dear Stakeholders,
The global financial market continues to evolve as central banks transition from aggressive interest rate hikes to a more measured approach. With inflation easing in key economies, long-term market stability is gradually improving, amidst uncertainties stemming from the impact of US trade policies. At the same time, financing costs remained elevated, placing liquidity management and capital efficiency at the centre of business priorities. In this dynamic environment, MISC has remained resilient, enabling us to adapt and stay on course.
AFENDY MOHAMED ALI
Value Creation Business Model
SDGs Impacted
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OUR KEY CAPITALS
Input
F
Financial Capital
- RM60.4 billion in total assets
- RM37.6 billion in shareholders’ equity
- RM6.7 billion in cash and cash equivalents
- RM15.5 billion in debt
P
Physical Capital
- 27 LNGCs
- 6 VLECs
- 1 LBV
- 2 FSUs
- 58 Petroleum and product tankers
8 LSVs
12 Floating assets
Marine and heavy engineering facilities
Maritime training facility
H
Human Capital
- 9,536 total employees from 46 nationalities
- 23% of employees are women (shore employees only)
- RM47.4 million invested in capacity building for employees
- 544 total new hires (shore employees only)
SR
Social & Relationship Capital
- RM21.0 million invested in ALAM cadet sponsorships
- Maritime education scholarships to promote youth development
346 employees have volunteered in the Heart of The Ocean (HOTO) programme since 2021
I
Intellectual Capital
- 56 years of experience in the maritime industry
- Collaborations on new energy solutions and decarbonisation initiatives
N
Natural Capital
- 56,084,855 gigajoules (GJ) of energy consumption
- Reliance on natural resources, such as fuel, water and land
F
Financial Capital
P
Physical Capital
H
Human Capital
SR
Social & Relationship Capital
I
Intellectual Capital
N
Natural Capital
Driven By Our Strategies And Ambitions
Vision
Mission
MISC 2024 STRATEGY
MISC 2030 Ambition
CFO* Improvements
CFO from New Energy Solutions
GHG Emissions Reduction in Shipping Operations**
* Compared to 2022 baseline (approximately USD1.2 billion)
** Compared to 2008 baseline
MISC Enterprise Strategy FY2025 – FY2030
Resilient Core
Profitable New Energy Business
Decarbonisation
MISC 2050 Vision
Renewable Energy Value Chain
The building block to manage climate change challenges with the maritime sector playing a key role
Waste-To-Value Chain
Critical in tackling resource scarcity and emissions as well as repurposing maritime assets
Operating Environment
Material Matters
Risks and Mitigation Strategies
Business Review
TO CREATE VALUE FOR OUR STAKEHOLDERS
Outputs/Outcomes
F
Financial Capital
Revenue of RM13.2 billion
Profit after tax of RM1.2 billion
CFO of RM4.3 billion
Dividend payout of 36 sen per share
Credit rating of BBB+ at S&P Global Ratings, Baa2 at Moody’s
P
Physical Capital
- Transported 5% of global LNG
- Transported approximately 171 million
tonnes of crude and petroleum
products globally - Above 99% for vessel availability
- Above 96% for vessel utilisation
- Above 97% for offshore floaters’ uptime
H
Human Capital
A total average of 38 training hours per shore employee
LTIF at 0.05
TRCF at 0.23
SR
Social & Relationship Capital
Sponsored 732 cadets at ALAM
Sponsored 22 students under maritime education scholarships
Engaged 10 families within the community in the HOTO programme
I
Intellectual Capital
19 accolades received
9 dual-fuel vessels owned
2 ammonia dual-fuel Aframax project awards
N
Natural Capital
Recorded 3.85 million tCO₂e of Scope 1 and 2 GHG emissions
Achieved a 32% reduction in our fleet average CO₂e intensity compared to 2008
Recycled, reused or recovered 99.7% of hazardous waste
Recorded zero major oil spills
F
Financial Capital
P
Physical Capital
H
Human Capital
SR
Social & Relationship Capital
I
Intellectual Capital
N
Natural Capital
Trade-Offs
F
Financial Capital
- A majority of our capital is allocated for operating and maintaining our fleet, ongoing project requirements, new CAPEX investments and purchasing new assets
- While CAPEX allocations reduce our financial capital in the short term, they build our physical capital base for longer-term growth
- Our long-term customer contracts for newbuild and purchased assets ensure secured income streams, thus growing our financial capital into the future
- Investment in innovation initiatives to drive operational and organisational efficiencies has reduced our financial capital in the short term but will enhance our intellectual capital in the long term
P
Physical Capital
- Our capital mainly consists of our vessel fleet, floating assets, yards and infrastructure. We focus on investments in eco-friendly newbuilds with lower emissions to enhance our natural capital
- We are providing customers with an eco-friendly fleet, improved efficiency and safety measures. This enhancement boosts our social and relationship capital
- We reduce obsolete physical capital by disposing older assets through green ship recycling initiatives. This positively impacts our natural capital and aligns with energy transition and climate change imperatives for sustainable long-term growth
H
Human Capital
- Our human capital, including skills, capabilities and knowledge, drives our intellectual capital. We invest our financial capital in human capital through talent development programmes and strategic human capital management aligned with our business plans
- The short-term reduction of our financial capital to sustain our human capital enables us to strengthen the capabilities of our workforce to respond to client needs and exceed customer expectations, thus building our social and relationship capital in the long run
SR
Social & Relationship Capital
- We invest financial capital in stakeholder engagements conducted by our employees, which impact our human capital through the manhours spent. The expenses associated with these engagements reduce our short-term financial capital. However, in the long term, they enable the growth of our social and relationship capital, ensure compliance with legal requirements, pave the way for sustainable future growth and maintain our industry reputation
- We undertake industry collaborations, focusing on lower-carbon emissions vessels and developing new energy solutions
- Our community-based environmental programmes positively impact our natural capital
- The growth of our social and relationship capital ultimately contributes to increasing our financial capital, as we maintain and expand our customer base
I
Intellectual Capital
- We invest financial capital to drive our intellectual capital by rejuvenating our fleet with the latest technologies, which improves our natural capital through a lower-carbon emissions fleet and enhances our human capital through new skills, while boosting our social and relationship capital from improved customer satisfaction
- In the short term, our financial capital is reduced with investments in technical solutions for floating assets, new technologies for port management, vessel inspections and yard operations. In the long run, these investments will boost our intellectual capital across our maritime value chain
N
Natural Capital
- Our physical capital’s emissions and waste have a negative impact on our natural capital. To improve our natural capital in line with energy transition imperatives, climate change and industry decarbonisation, we have refined our MISC 2030 Ambition and strengthened our commitment to achieving Net-Zero GHG emissions, aligning with the MISC 2050 Vision
- Efforts towards improving our natural capital will reduce our financial capital in the shorter term and impact on our human, intellectual and physical capitals. Improvement of natural capital will heighten our social and relationship capital, as MISC commits to a sustainable future
Anchoring Sustainability
- Environment
- Financial
- Social
- Governance
At MISC, sustainability reflects our commitment to environmental stewardship and our responsibility to society. Anchored by MISC’s Sustainability Strategy and a rolling business plan aligned with 11 relevant SDGs, we continuously refine our approach to meet evolving customer needs, regulatory requirements and stakeholder expectations, driving progress toward our MISC 2050 Vision.
Environment
Towards Decarbonisation
Short to Medium Term
- Energy efficiency
- Collaboration on alternative fuel research and development
- Transition to low-carbon fuel
- Renewable energy mix
Long Term
- Transition to decarbonised fuel
Promoting Circular Economy
4Rs – Refuse, Reduce, Reuse & Recycle
Ship recycling
Greater renewable resource utilisation
Biodiversity Conservation
Marine biodiversity conservation
Financial
Financial Governance Framework (FRA/CFP)
Financial growth plans
Social
Talent Excellence
Talent development
- Engaged workforce
Community Investment
Youth entrepreneurship education
- CSR on education
Health & Safety
Employee safety, health and well-being
- Contractor safety
Process safety
Governance
Governance & Business Ethics
Robust Culture
Assurance
Cybersecurity
Sustainable Supply Chain Management
Assurance
Collaboration
Downloads
Navigating a Sustainable Future Together
Integrated Annual Report 2024