MISC BERHAD 88 INTEGRATED ANNUAL REPORT 2023 89 www.miscgroup.com BUSINESS REVIEW SECTION 7 Energy Transition Drive innovative solutions • Enhanced efforts in the development and deployment of renewable energy technologies • Engaged in advancing the concept and development of clean assets and solutions Limited Funding Sources Securing new financing sources • Improved access to funding for new project via strategic partnerships • Established partnerships and alliances within the industry, including the financial community Global Supply Chain Disruption Strengthened stakeholder relationships • Explored partnerships and potential collaboration with industry players and yards • Established strategic collaboration with yards, vendors and other key industry players to mitigate risks Offshore Business KEY ACHIEVEMENTS 1 Operational Excellence • Achieved 28 million manhours without LTI for the FPSO Marechal Duque de Caxias project • Achieved zero “non-conformance” for ISO 55001 Asset Management certification for the second consecutive year • Successfully concluded the Operational Safety Management System (SGSO) audit conducted by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) with no critical findings 2 Towards Decarbonisation • Introduced the NBFPSO with MMEGA, achieving a 40% GHG reduction compared to similar-sized FPSOs • Obtained an AiP for an innovative FCSU and FCSU-I, enhancing maritime carbon capture and storage efficiency Milestones Awards and Recognitions Attained Occupational Safety and Health Award “Gold Class I” for FSO Puteri Dulang and FSO Orkid. Malaysian Society for Occupational Safety and Health (MSOSH) Achieved SUSTAIN-1 Class Notation Certification for MMEGA by the American Bureau of Shipping. American Bureau of Shipping (ABS) Asset Uptime 2023 >90% 2022 >95% NAVIGATING THE CHALLENGES IN 2023 Challenges Mitigation Action • Explore deployment of our newbuild FPSO solution, MMEGA, to create synergies within the MISC Group • Explore alternative viable FPSO solutions including clean initiatives • Redeploy FPSOs in the brownfield market, leveraging on high energy prices and exploring floating infrastructure for low-carbon industries • Strengthen the offshore business segment through collaborations and partnerships with renowned industry players to enhance capabilities and mitigate risks MOVING FORWARD Results Marine & Heavy Engineering WHAT WE DO MHB is a leading global energy and marine solutions provider with a 50-year track record. We own and operate the largest fabrication yard in Malaysia and Southeast Asia, equipped with world-class facilities with comprehensive EPCIC services for both offshore and onshore structures. Our expertise extends to offshore deepwater fabrication, offshore conversion services and ship repair, including LNGC repair and dry docking. With three of the largest dry docks in Southeast Asia, we provide extensive ship repair, refurbishment, upgrading and life extension services for various types of vessels and rigs. Recognising the importance of sustainability, we have expanded our services to support the global energy transition, focusing on renewable energy and decarbonisation initiatives such as carbon capture facilities and energy efficiency. We remain dedicated to delivering solutions that not only meet the needs of our stakeholders but also contribute to a sustainable and efficient future in the energy and marine sectors. At MHB, we acknowledge the forthcoming surge in global upstream oil and gas investments. Our proactive efforts to streamline operational efficiency, embrace digitalisation and venture into renewable energy have not only enabled us to secure pivotal local and international projects but have also bolstered our regional standing. Globally, nations have united in the pursuit of limiting global warming to 1.5 degrees Celsius and to realise this requires fundamental transformation of the energy sector. This transformation pivots on the integration of cutting-edge technologies, substantial investment and collaborative efforts among all stakeholders. Moving forward, we remain committed to driving operational excellence, by enhancing project delivery and maximising asset utilisation. We will also focus on expanding our presence in the clean energy sector while ensuring our workforce is adept at navigating emerging low-carbon technologies. Our dedication to steering through the global energy transition entails adoption of innovative, sustainable and low-carbon solutions to propel MHB forward. Mohd Nazir Mohd Nor Managing Director & Chief Executive Officer, Malaysia Marine and Heavy Engineering Holdings Berhad
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