MISC BERHAD 90 INTEGRATED ANNUAL REPORT 2023 91 www.miscgroup.com BUSINESS REVIEW SECTION 7 Marine & Heavy Engineering Marine & Heavy Engineering Focus Area What We Did in 2023 Revenue Enhancement New contract award Heavy Engineering • Pre-qualified MHB as an EPCIC Contractor with international clients for offshore projects • Expansion into clean energy opportunities • Awarded EPCI contract for JDA Field Development Project (Phase 6) by CPOC • Qualified as an EPCIC Contractor with reputable oil majors internationally • Pioneered Malaysia’s first and world’s largest offshore CCS project - Kasawari CCS • Awarded the OSS HVDC for offshore wind farm Marine • Focused on securing new projects • 87 projects awarded in year 2023 through new and existing customers secured domestically and internationally Digitalisation and Technology Digitalised supply chain • Improved efficiency across project delivery supply chain • Implemented the PANTHERA initiative in Heavy Engineering Towards Decarbonisation Strategic collaborations • Pursued partnerships with clean energy companies to develop innovative low-carbon products and services • MoU with Fuelcell Energy for electrolyser plants and zero-carbon hydrogen production • Secured OSS HVDC platform contract Talent Development Collaborated with government and industry bodies • Leveraged employability initiatives through government agencies • Forged partnerships with Malaysian government agencies to drive talent development and supply KEY FOCUS AREAS AND RESULTS KEY ACHIEVEMENTS Revenue (RM million) 2023 2022 3,309.2 1,651.6 Operating (Loss)/Profit (RM million) 2023 (467.7) 2022 60.8 Results 1 Operational Excellence • Heavy Engineering segment: Completion of the EPCIC of Central Processing Platform (CPP) for Bokor phase 3 re-development project Milestones Remains a Constituent of FTSE4Good Bursa Malaysia Index FTSE Bursa Malaysia EMAS Index (FBM EMAS). FTSE4Good Bursa Malaysia Index Attained the Silver Award for the Green Transition category. The Edge Malaysia ESG Awards 2023 Awards and Recognitions Drydock Utilisation Yard Utilisation 2023 65% 2022 77% 2022 84% 2023 86% KEY ACHIEVEMENTS • Enhance operational efficiency and project delivery • Drive revenue growth in Heavy Engineering from conventional business and clean energy projects • Drive revenue growth in the marine repair segment and conversion projects MOVING FORWARD Energy Transition Drive innovative solutions • Gradual shift towards renewable energy segments • Strengthened presence in the renewable energy space • Secured new renewable project contracts Skilled Professional Scarcity Proactive recruitment • Implemented targeted sourcing methods and referral programmes • Collaborated with Government and Industry Bodies Government, Industry Bodies and education institutions for a steady pipeline of skilled workforce Project Delivery and Execution Project delivery and execution excellence • Strengthened project execution standards and promoted accountability within the project delivery process • Adopted a standard operating procedure for enhanced estimation and benchmarking • Implemented indexing, reimbursable, cost-plus and re-measurable terms in new contracts Challenges Mitigation Action NAVIGATING THE CHALLENGES IN 2023 Results
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