A very good evening, ladies and gentlemen, and thank you for joining our fourth-quarter FY 2025 analyst briefing. My name is Faizan from the Investor Relations team, and I'll be your MC for today's session.

We are pleased to be joined by Encik Zahid Osman, President and Group CEO; Encik Raja Azlan, Chief Strategy and Sustainability Officer; Encik Afendy, Chief Financial Officer; and Encik Adam Fadzil, Head, Strategy and Investor Relations. Now, before we begin, please refer to the disclaimer statement in the presentation deck.

This presentation may include forward-looking statements relating to future plans and expectations. Actual results could differ due to unknown risks, uncertainties, and other factors beyond MISC's control.

Now with that, without further ado, I would like to invite Encik Zahid, our President and Group CEO, to deliver his opening remarks. Encik Zahid?

Thank you, Faizan. Assalamu'alaikum.

Good evening to everyone. Welcome to our analyst briefing for quarter 4 results as well as full year 2025.

I will begin with full-year performance and strategic progress across our MISC 2030 ambitions, then Afendy will cover the financial performance in detail, and then Raja Azlan will conclude with market environment before we start the Q&A session. 2025 was a positive year for MISC as we continue progressing towards MISC 2030 ambitions, delivering positive outcome both in our financial performance and across all three strategic pillars.

Profit after tax increased by 50% to $406 million, supported by stronger offshore business and petroleum business and lower impairment. We were able to capitalize on the stronger charter rates environment towards the end of 2025 for the tanker market.

Operating cash flow rose by 41% to $1.3 billion US dollar. The stronger cash generation enhances our balance sheet and enable the company to declare higher dividends of 38 cents per share, an increase of 2 cents year on year.

This is the highest dividend declared in more than 15 years, reflecting our continued commitment to delivering sustainable shareholders return. These results did not occur by coincidence.

They reflect disciplined executions across the group, and also the discipline in delivering and executing our strategy. Our strategy provide a clear framework for us as we strengthen today's earnings while positioning the group for long-term growth and energy transition opportunities.

Throughout 2025, we remain focused on translating strategy into execution, delivering measurable progress across all the three pillars. Resilient core: we have further strengthened our earning with stability and cash-generating businesses through asset deliveries and new contract awards.

Under asset deliveries, seven LNG carriers were successfully delivered to QatarEnergy under the long-term charters, with five delivered ahead of schedule. This further strengthens contracted revenue visibility and reinforces the stability of our gas earnings profile.

We also commissioned FSU Puteri Delima Satu in Pengerang, adding stable recurring cash flow while supporting national gas supply security. The project was completed safely with more than 500,000 man-hours without lost time injury.

Under new contract awards, I am pleased to share with you that we recorded growth across all four key businesses in MISC in 2025. In gas, we secured long-term charters with PTT for two very large ethane carriers, expanding our ethane transportation portfolio.

In petroleum, we secured long-term charter for two LNG dual-fuel Aframax, completing the dual-fuel capability across all our tanker classes. While in offshore, we secure a contract for a floating production unit for PETRONAS Carigali, making our strategic entry into the Brunei as a country.

In MHB, we secured an EPCCIC contract from Vestigo Petroleum for offshore infrastructure. These actions enhance portfolio quality, extend earning visibility, and strengthen future cash flow resilience across the group.

Turning into our second strategic pillar, the profitable new energy, we made progress with our entry into new energy value chains in a more structured manner, focused on capability building ahead of a large-scale investment decisions. Our first foray is into CCS, carbon capture and storage value chain.

We have successfully entered into the CCS value chain through a joint venture with PETRONAS CCS Ventures and Mitsui O.S.K. Lines, or MOL, combining complementary strengths in asset ownership, operation, and customer access.

The joint venture will be responsible for owning and operating new LCO2 carrier. Our second foray is into transition-ready offshore and shipping solutions, where we secured approval in principle for an ammonia FPSO concept and ammonia fuel LR2 tanker.

These will certainly strengthening our fuel readiness across our fleet. These decisive actions demonstrate our building block for the sustainability of our business going forward.

It is very clear that our approach is all about building capability today, validate commercial pathway, and only we are scaling up when returns are clear. For our third strategic pillar, on the decarbonization, we continue to strengthen our asset competitiveness and long-term commercial relevance in this area.

2025 was also the year where we achieved 30%—36% lower emissions compared to our 2008 baseline for our fleet average greenhouse gas emissions intensity. This is reflecting of our ongoing fleet rejuvenation as well as operational efficiency improvement.

Once again, this achievement showed that we delivered on what we promise. As in previous year, our consistency in execution, strong operational performance, reliability, and high governance standards continue to be recognized by external parties.

Together, these recognitions reinforce stakeholder confidence in how MISC operates, manage risks, and deliver performance. Having strengthened the portfolio in 2025, we entered 2026 with continued momentum.

Since the year-end, we have secured additional long-term contract-backed growth across both our resilient core and profitable new energy business pillars. Under resilient core, in gas, we secured long-term time charter contracts for three vessels with PETRONAS LNG.

While in offshore, we entered into bareboat charter and operations and maintenance agreement for an FSO in Papua New Guinea with ExxonMobil. This contract represents a strategic expansion into a new production basin and strengthen our secure asset pipeline.

PNG also marked the second successful footprint expansion in addition to our Brunei entry. Under profitable new energy, we have also made significant progress in achieving FID in this space.

We secured a long-term charter for a liquefied carbon dioxide carrier, or LCO2 carrier, with the Northern Lights Joint Venture project. This is with our partner, "K" LINE.

This contract marks our first commercial entry into the carbon transportation value chain, with a second charter expected in later part of 2026. In petroleum, AET secured a long-term charter for a dual-fuel ethanol-ready Suezmax DPST, or dynamic positioning shuttle tankers.

The vessels were equipped with an electric energy storage system. For us, growth remain disciplined and contract-backed, with a clear focus on earning visibility.

We have entered 2026 as a stronger and a more resilient organization, reflecting steady progress in advancing the MISC 2030 ambitions. This is supported by higher-quality portfolio, a stronger cash generation, and clear earning visibility.

Building on the progress achieved, we will continue carrying this momentum through the year, focusing on delivering long-term value for our stakeholders. With that, let me hand over the presentation to Afendy, who will take through the detail financial performance for MISC in quarter 4 and in full year 2025.

Thank you.

Thank you, Encik Zahid. Assalamu'alaikum and very good evening, ladies and gentlemen.

I will share with you the performance of the fourth quarter as well as the full year of 2025. For financial year 2025 was a year marked by operational transition and strengthening our financial stability across the group.

Performance during the year reflected a combination of market dynamics, the transition of FPSO Marechal Duque de Caxias, or Mero 3, into the operations, and varying stages of project execution across our business segments. In the fourth quarter of 2025, the group continued to demonstrate improved core operational performance despite the presence of accounting-related expenses and one-off items.

For the quarter ended 31st December 2025, the group revenue stood at $677 million US dollars compared to USD 753 million in the corresponding quarter. The year-on-year decline was mainly driven by softer contribution from gas as well as Marine and Heavy Engineering segment.

Our gas segment recorded a lower revenue mainly driven by the tapering of construction activities for the Puteri Delima Satu FSU conversion as the project nearing its tail end, together with reduced earning days followed by contract expiries and vessel disposals. Revenue in Marine and Heavy Engineering also declined materially as several major key projects are nearing completion, which led to reduced activity, while newer projects are still in the early stages of execution and have yet to contribute meaningfully to the top line.

This decline were partially offset by stronger contributions from petroleum segment, which have benefited from the higher freight rates and improved earning days during the quarter. While the offshore business segment also delivered an uplift to the revenue, supported by contributions from the newly acquired FPSO Kikeh and the transition of FPSO Mero 3 from construction into operational phase.

Against the preceding quarter, the group revenue remained broadly comparable, increasing marginally by 2%. The slight uplift was mainly driven by petroleum as well as Marine and Heavy Engineering segment, supported by higher freight rates, freight rates, improved earning days, and increased project activity.

Moving on, the group recorded operating profit of USD 125 million in quarter 4 2025, representing an increase of 41%. This improvement was mainly driven by stronger performance from the offshore business segment, which recorded an operating profit of USD 43 million in quarter 4 2025, marking a turnaround from an operating loss of USD 29 million reported in the same period last year.

The significant uplift was supported by the recognition of insurance recoveries amounting to USD 75 million arising from FSO Bunga Kertas settlement, partially offset by the provision for doubtful debt amounting to USD 43 million relating to an our ongoing litigation on the remaining trade receivables balances from PCPP. In this regard, MISC Berhad solicitors continue to engage with the liquidator while exploring available avenues for the recovery.

In contrast to the stronger year-on-year performance, the group operating profit declined by 11% quarter on quarter from USD 140 million in quarter 3 2025 to USD 125 million in quarter 4 2025, mainly from the gas segment. The decline was driven by the inventory write-off, accelerated depreciation for Puteri Satu class, higher operating costs, onerous contract provision for our a vessel Princess Sapphire, as well as lower revenue contribution.

While the group continued to deliver resilient operating profit, our headline profitability remained impacted by impairment provisions in the gas segment. The group recorded profit after tax of USD 5 million in quarter 4 2025, which was marginally above break-even, with vessel impairment of USD 84 million recognized during the quarter.

Nonetheless, this marginal profitability represent a turnaround from the loss of USD 91 million recorded in quarter 4 last year, primarily driven by stronger operating performance and lower vessel impairment. Against preceding quarter, the group profit after tax declined from USD 131 million recorded in quarter 3 2025 to USD 5 million in quarter 4 2025 due to higher gas vessels impairment, as mentioned earlier.

Cash flow from operations strengthened to USD 453 million in quarter 4 2025, reflecting an improved core operational performance across the group. The increase was driven by higher cash receipts from customers, which have negated by payments to vendors and subcontractors during the quarter.

Compared against both corresponding and preceding quarter, cash flow from operation increased, mainly supported by stronger cash generation from offshore, including insurance recoveries, as well as higher contribution from petroleum segment driven by improved operating cash inflows. Next.

For the financial year ended—for the full year financial year ended 2025, the group revenue stood at USD 2.6 billion, representing a 10% decline. The overall reduction primarily reflect softer contribution from gas as well as Marine and Heavy Engineering segment, partially offset by stronger performance from petroleum as well as offshore business segments.

Revenue declined within gas segment mainly due to lower earning days following contract expiries, lay-ups, and vessel disposals, together with softer charter rates and reduced construction activities on FSU conversion following the piece delivery during the year. Marine and Heavy Engineering segment also recorded lower revenue as several key projects progress towards completion.

These declines were were mitigated by higher revenue from petroleum segment, which has benefited from stronger freight rates and improved earning days, while offshore business segment also delivered higher top-line contribution supported by consolidation of FPSO Kikeh and the transition of FPSO Mero 3 into full operational phase, which has which has strengthened our recurring operational income. Overall, the group revenue moderated year on year.

The portfolio mix continued to shift towards more operationally stable earnings, providing a stronger foundation for profitability as well as cash generation. For financial year 2025, the group recorded operating profit of USD 649 million, representing 40% increase.

The improvement was primarily driven by stronger contribution from the offshore business segment, which offset the softer operational performance from gas and Marine and Heavy Engineering. The offshore business segment was the key driver of growth, supported by the transition of FPSO Mero 3, contribution from FPSO Kikeh, as well as the recognition of insurance recoveries.

Within the petroleum segment, operating performance was supported by the gain from the unwinding of the interest rate swap of USD 33 million recognized during the year. The group recorded profit after tax of approximately USD 406 million in 2025 compared to USD 270 million in 2024.

The improvement largely mirrors the stronger operating performance mentioned earlier, particularly the significant turnaround within the offshore business offshore business segment. At the same time, year-on-year improvement was further supported by lower impairment provisions compared to 2024, which helped uplift headline profitability despite softer performance in gas and lower contribution from Marine and Heavy Engineering segment, while the profit profitability within the petroleum segment was marginally higher.

Overall, the group operating cash generation remained robust, reinforced disciplined cash management and the resilience of the portfolio. The cash flow from operations strengthened significantly to USD 1.3 billion in 2025 compared to USD 940 million in 2024, driven by stronger collection from customers, primarily supported by contribution from FPSO Mero 3.

Compared with the prior year, operating cash flow increased by USD 388 million, within the offshore business segment being key being the key contributor. Offshore cash generation improved by about USD 292 million, largely attributed to FPSO Mero 3 following its full year of operation, as well as the insurance recovery from the FSO Bunga Kertas, as I mentioned earlier.

Next. Moving to the next slide, on the balance sheet and gearing position, the group maintained a stable and disciplined financial profile at the year-end.

Total assets stood at USD 13.1 billion, lower than the prior year, mainly due to depreciation and impairment charges, together with amortization of finance lease receivables. Cash and bank balances remained broadly stable at around USD 1.5 billion, reflecting our continued liquidity strength and healthy cash generation.

Shareholders' equity remained resilient at about USD 8.6 billion. Total borrowings declined to USD 3.2 billion, reflecting our higher debt repayment during the year.

As the result, our gearing has improved both on gross as well as net gearing. Our debt profile remains prudent, with approximately 92% is being fixed at a fixed-rate borrowings, which provide a protection against interest rate volatility.

Overall, the group continues to maintain a strong balance sheet supported by disciplined capital management and prudent risk positioning. Next.

Consistent with the previous slide, the group maintained a healthy liquidity position while continuing to optimize its debt profile in line with our disciplined capital management approach. Cash balances remained stable at $1.5 billion as at December 2025, broadly comparable with the prior year, and this reflects strong operating cash generation, which largely which has largely offset investing and financial outflows during the period and supported overall financial flexibility.

Our borrowings declined to 3.2 billion compared to the prior prior year, mainly driven by the repayment of our corporate bond during the year. Overall, stable cash balances together with lower debt balances reinforced the group's prudent funding strategy and supports the improvement in gearing ratios highlighted earlier, positioning the balance sheet on a stronger footing going into the next financial year.

Next. I will share with you the quarter 4 business quarter-by-quarter business segments performance.

I will start with gas. Gas recorded a lower revenue recorded a revenue of USD 102 million in quarter 4 2025, representing a decline of USD 90 million compared with the corresponding quarter.

The decrease was mainly attributable to lower construction revenue from FSU conversion as the project have completed last year, in 2025, as well as reduced earning days following contract expiries, vessel disposals, and lay-ups. Compared with the preceding quarter, revenue declined by USD 21 million from USD 123 million, primarily driven by lower construction revenue as well as weaker spot market rates, consistent with the year-on-year trend.

Operating profit for the quarter declined USD 40 million compared with the corresponding quarter, mainly due to lower revenue, as mentioned earlier, reduced construction profit, inventory write-off, and onerous contract provision for Princess Sapphire. The inventory write-off amounted to USD 15 million, mainly comprising of accounting write-off of USD 11 million relating to few vessels under Seri A and Seri B leases classes and a further $4 million relating to Puteri Satu class, in addition to the onerous contract provision for Princess Sapphire of USD 7 million during the quarter.

Against the preceding quarter, operating profits declined by USD 34 million, driven by accelerated depreciation relating to the Puteri Satu class, as well as the same onerous contract provision and inventory write-off, which I have just highlighted. Loss after tax stood at USD 96 million, improved by 25% compared to a loss of USD 128 million in quarter 4 2024, mainly driven by lower vessel impairment by USD 77 million.

Included in the vessel impairment in quarter 4 2025 are related to Seri Bakawali and Seri Balhaf, amounting to approximately USD 50 million. Against the preceding quarter, profit after tax declined by USD 108 million, primarily due to weaker operating profit and higher recognition of vessel impairment by USD 72 million.

For the petroleum segment, this segment continued to deliver resilient performance during the quarter, maintaining a term-to-spot ratio of approximately above 75%, which provided earning stability while allowing the segment to capture upside from favorable spot market conditions. Revenue increased to USD 224 million in quarter 4 compared to USD 207 million in the corresponding quarter and USD 203 million in the preceding quarter, making quarter 4 2025 the strongest quarter of the year for this segment.

The improvement was mainly driven by higher freight rates and increased earning days. Operating profit of USD 94 million, representing an increase compared with both corresponding and preceding quarters and similarly marking the strongest quarterly performance for the year.

The uplift was broadly in line with higher revenue supported by mark by improved market condition. It is worth noting that the preceding quarter included gains from unwinding of interest rate swap of USD 13 million.

Profit after tax stood at USD 81 million, higher compared with the corresponding quarter, supported by stronger operating performance during the period. However, the profit after tax was lower compared with the preceding quarter due to the gain that was recognized from the disposal of Bunga Kasturi 5 and Bunga Kasturi 6 in quarter 3 2025 amounting to USD 30 million.

Excluding the impact of disposal gains and the gain from unwinding of interest rate swap in quarter 3 2025, profit after tax in quarter 4 2025 for petroleum segment would have been significantly higher, reflecting its stable underlying operating performance within the petroleum segment. For the offshore business segment, this segment continued to be a key contributor to group profitability during the quarter and was the most improved business segment across all key financial parameters compared to the corresponding quarter.

Revenue stood at USD 117 million, representing an increase of USD 22 million compared with the corresponding quarter of USD 3 million higher than the preceding quarter. The year-on-year uplift was mainly attributable to FPSO Mero 3, reflecting a full quarter of operational activities compared to the construction revenue previously, as well as the consolidation of FPSO Kikeh following its acquisition.

Compared with the preceding quarter, revenue growth was supported by higher production of FPSO Mero Mero 3, operating above its nameplate capacity of approximately 180,000 barrels per day. Operating profit for this segment improved significantly by USD 43 million compared with an operating loss of USD 29 million in the corresponding quarter, although marginally lower than the USD 47 million recorded in the preceding quarter.

FPSO Mero 3 remained a key earning driver, contributing to approximately 60% of overall offshore operating profit during the quarter. The strong year-on-year growth was mainly supported by insurance recoveries amounting to USD 75 million arising from FSO Bunga Kertas settlement and lower operating costs following the operational transition of FPSO Mero 3.

The positive impacts were partially offset by the provision of doubtful debt amounting to $43 million, amount due from PCPP, which I have mentioned earlier. Compared with the preceding quarter, operating profit was marginally lower than USD 48 million recorded in quarter 3 2025, mainly due to higher cost recognized during the quarter, including the provision of FPSO Bunga Kertas demob cost as well as higher repair costs for Bunga Kertas FSO Bunga Kertas, which has been offsetted by the insurance recoveries.

Profit after tax followed a similar trajectory, increasing USD 16 million compared with a loss of USD 43 million in the corresponding quarter, but lower than the USD 26 million of profit recorded in the preceding quarter, broadly reflecting movement in operating profit and joint venture contributions. Excluding insurance recoveries and provisioning-related accounting expenses, offshore remained operationally profitable, demonstrating improved underlying asset performance and operational stability.

Finally, our Marine and Heavy Engineering: the revenue stood at USD 139 million, lower than USD 187 million recorded in the corresponding quarter, but higher than USD 120 million in the preceding quarter. The year-on-year decline was mainly attributable to project phasing, including delays in Kasawari CCS project and the tapering of major projects nearing completion.

The quarter-on-quarter improvement reflected higher project activity as this project progress into more active construction phases. Operating profit improved to USD 13 million compared to USD 6 million in the corresponding quarter and USD 7 million in the preceding quarter.

The improvement was supported by change orders and favorable finalization of several completed projects, which contributed to stronger profit stronger margins. Profit after tax increased to USD 12 million compared to USD 5 million in the corresponding quarter and $7 million in the preceding quarter on the back of stronger operating performance, as mentioned earlier.

This marks another successive year of profitability for the segment, demonstrating continued operational discipline and stronger execution across projects. Next.

If I can just summarize briefly on the four business segments: we continue to see the a drop in performance of gas business, as we have been highlighting this in previous quarters as well. Similarly, we have taken less smaller impairment this year compared to 2024.

As I mentioned, the biggest contribution is the the impairment of Seri Bakawali and Seri Balhaf. These are the two vessels that is contracted to YLNG.

For petroleum segment, we have seen they have managed to improve their operational performance and striding the the market by improving the the term-to-spot ratio to about about above 20% compared to 2024 of about less than 10%. For offshore business, Mero 3 has been the biggest contribution to all the financial parameters for offshore business, and contributed significantly to not just operational profit, but also the cash flow.

Which we see we see for heavy engineering, we see stable profitability, and they have recorded for two successive successive years of in in the black. That's what I have sharing the financial performance.

I'd like to conclude my briefing, and I pass back to Faizan.

Thank you, Encik Afendy. Next, I'd like to invite Encik Raja Azlan on the market environment and outlook.

Thank you, Faizan. Assalamu'alaikum and a very good evening to our friends, analysts, investors.

I'll take you through the market environment looking at LNG, petroleum shipping, and offshore. In terms of LNG shipping, in 2025, the orderbook-to-fleet ratio now stands at 40% compared to around 50% in the previous year following a slowdown in new vessel orders amid oversupply of vessels, high newbuild prices, continued regulatory uncertainties, and the lower charter rate.

However, the vessel orderbook is expected to recover in 2026 as owners look to future-proof their vessels amid regulatory and trade uncertainty. Vessel deliveries are expected to remain high through 2026 to 2030.

The LNGC fleet is projected to grow at a compounded annual growth rate of 9% up to 2030. Next slide, please.

On the LNG supply side, the outlook for new LNG project approvals remains positive. In 2025, we saw approximately 60 mtpa of new liquefaction capacity being secured through FIDs.

This is expected to accelerate in 2026, with additional capacity of around 40 mtpa. 90% of this new capacity is coming from the USA and Qatar.

Global liquefaction capacity is projected to grow about 11% annually, compounded annual growth rate, through 2030, driven by new capacity additions. While a new wave of liquefaction capacity is projected to enter the market, the actual supply will depend on project start-ups, which may be affected by feedgas availability, regulatory changes, and evolving environmental, social, and economic considerations.

Next slide, please. LNGC spot charter rates increased slightly in the fourth quarter of 2025, driven by short-term winter demand and increase in US LNG supply.

Looking ahead, LNGC charter rates are expected to gradually improve in 2026, especially for modern vessels, as increasing global liquefaction capacity helps rebalance market fundamentals. Steam turbine vessels will continue to face challenges as the industry shifts to modern, eco-efficient, and lower-emission vessels.

The idle fleet is also likely to expand, with 20 to 25 steam LNGCs coming off charter in 2026, while the high delivery schedule of modern carriers will exert more pressure on older carriers. Despite these challenges, LNG shipping remains our strategic core segment.

We continue to rejuvenate our fleet with modern, fuel-efficient vessels secured on long-term charters, consistent with our resilient core strategy. By 2029, our gas segment is expected to deliver an additional of more than 15 modern, eco-efficient vessels, which will lift the proportion of next-generation ships in our fleet to approximately 80% to 90%.

This is an increase from the current proportion of 40%. Next slide, please.

In petroleum shipping, the crude tanker orderbook expanded further in 2025 following a surge in new orders, raising the orderbook-to-fleet ratio to 16%, an increase from 10% in 2024. Between 2026 and 2030, around 430 new crude tankers are expected to be delivered, with 330 demolitions.

Deliveries are projected to peak in 2027 when most of the Suezmax and VLCC orders placed over the past two to three years are scheduled to enter the fleet. Next slide, please.

The petroleum shipping market is expected to remain positive in 2026, supported by strong vessel demand driven by increased OPEC+ output and sustained ton-mile demand driven by geopolitics. Charter rates continue to be supported by tight vessel availability stemming from ongoing sanctions and limited fleet growth in 2025, while geopolitical uncertainties continue to shape crude trade flows.

The global crude oil market is forecasted to remain oversupplied, keeping freight rates elevated through the first quarter of 2026. Our petroleum and product segment continues to demonstrate resilience, and this is underpinned by a solid base of long-term charters, complemented by proactive efforts to optimize fleet utilization across the spot market, lightering operations, and time charter opportunities to strengthen overall earnings and profitability.

Next slide, please. Moving on to offshore, upstream capital spend is projected to grow steadily, reaching $220 billion by 2030, surpassing the levels seen in the mid-2010s.

This trend reflects a favorable industry outlook driven by increasing demand and investments in offshore resources. As a result, demand for floaters, particularly FPSOs, is expected to remain strong.

The projected total capex for FPSO units from '26 to 2030 is estimated at around $80 billion. Close to 90 Close to 90% of these new projects is concentrated in Latin America, APAC, and Africa, and MISC is positioned to capitalize on this upcycle in targeted regions such as APAC, South America, and also Africa, while managing affordability and risks through strategic partnerships and balanced contract structures.

With that, I end my presentation. Thank you.

Back to you, Faizan.

Thank you, Encik Raja Azlan. We will begin the Q&A session shortly.

For those who wish to ask a question, as per every quarter, please use the raise hand function. Once you are called upon, kindly state your name and organization before proceeding.

To ensure that as many people can ask questions, each speaker may ask up to two questions in the first round. If you have an additional question, please raise your hand again, and we will continue.

Right. We'll begin the Q&A with a question from Raymond.

Raymond, go ahead, Raymond.

Hi. Good evening, guys.

This is Raymond from CGSI. Just a couple of questions to clarify some numbers.

The impairment on the ships relates to purely LNG ships, and I think you mentioned was Seri Bakawali and Seri Balhaf. Just to confirm that these two ships alone would account for the entire impairment, or are there other ships as well?

The impairment loss on receivables, is that impairment on the receivables from Yemen LNG, just to double check? Also, when you disclosed the LNG loss of $96 million US dollars in the fourth quarter, does that deduct for the impairment on the vessels as well as the impairment loss on receivables?

Whether those two one-off items were actually deducted from the $96 million USD that you disclosed for the fourth quarter? The last question on LNG is the associates.

I think you have seven vessels that are chartered to QatarEnergy. May I know how much that contributed to the earnings in fourth quarter as well as 2025?

Okay. Thanks for the question, Raymond.

Maybe I'll address the the gas vessel impairment. During the quarter 2020 quarter 4 2025, our total impairment was about $84 million US dollars.

As I highlighted in my briefing earlier, $50 million of that is relating to Bakawali and Balhaf. It is not it's mostly relating to Bakawali and Balhaf.

What we have taken this year or in quarter 4 is that previously Bakawali and Balhaf, which is contracted to YLNG, we have valued it based on value in use, but upon discussion internally with the management as well as with our auditor, we felt that the best way forward is actually to to look at the market value of this vessel, right? Hence, for quarter 4, we have account for it as a market value instead of value in use given the uncertainty and the geopolitics of of Middle East and the uncertainty of being able to to continue with YLNG.

That's that's the impact of the the impairment of $50 million. The second question, if I can recall, you were asking the impairment on receivables.

The impairment on receivables is relating to amount due from PCPP, which is in the offshore business. In fact, last

Sorry, what's this EC what?

PCPP, PCPP Operating Company, right? So

What does it stand for? Sorry.

Block 1. Block 1.

Vietnam.

No, this is not Vietnam. This has been outstanding if you look in our notes in both Bursa, we actually have a continuous note on this litigation with PCPP, right?

We have this amount of $43 million that has been outstanding for over I think close to 10 years. Hence, again, similarly internally we have taken the position that we will take an impairment given the uncertainty of the recovery of this from an accounting standpoint.

Yep. I think you asked the question on Yemen LNG.

All the receivables of Yemen LNG was taken in 2024. Yep.

There's no more receivables taken in respect of Yemen LNG in 2025 at all.

Okay. This impairment loss on receivables was offset against the offshore sector, was it?

Correct. Yes.

You're right.

Okay. Sure.

Understood. How about the QatarEnergy LNG charters?

How much did it contribute to your share of associates for fourth quarter in 2025?

The contribution from JV Qatar from the joint venture for 2025 is quite still minimal. It's less than $2 million, right?

Given what we have done is, like mentioned by Encik Zahid, I think about seven vessels over the last what, 6, 7 months, effectively second half 2025. I think I mentioned this either quarter 2 or quarter 3.

As we receive those vessels, what we did was we have a set-up cost. The set-up cost, including the full depreciation of those vessels, effectively negated the revenue that's generated by those vessels.

You'll probably start to see the significant or more contribution coming from these vessels when we see the full year of operation in 2026, rather than 2025. Mm-mm.

There was some set-up operating costs, and also the depreciation are impacted. You would get a full-time charter revenue from day one.

I don't really understand why the earnings will be so low. Because, okay,

as an example, some of the vessels we'll get in the middle of the month, right, or towards the end of the month. From an accounting standpoint, we depreciate the full month, right, for simplicity because we don't depreciate by days.

We depreciate the full month. We may get, let's say, 1 week of revenue if it is delivered in the last week of the month, right, but the depreciation is taken on a full-month basis.

Overall, that has to a certain extent impacted the financial performance of these vessels, as I said, especially in the year is being delivered,

lah.

Mm-mm.

Sure. Then, if I look at the front page of the P&L, right, you have other operating income of 567 million ringgit.

That's a pretty large number compared to the previous quarter. Could you give us some idea what that number is made up of?

The significant amount is the recovery of insurance for FSO Bunga Kertas, $75 million US dollars. We actually received that in quarter 4 2025.

Okay. What did you insure against that you could claim against the insurance company?

What happened is we swapped BUK, Bunga Kertas, FSO Bunga Kertas with Bencemas, right? Part of the agreement is that we had with the charterer is we are able to basically claim significant amount of insurance from Bencemas 2, and that's the money that we have kept ourselves.

Because you have to also remember, I think in 2023, we actually incurred significant amount of costs to repair Bencemas as well as to bring it to the yard upon the completion of BUK. Those are part of the deal where we are able to claim the insurance recovery for Bencemas 2.

There was an incident, Raymond, back in '23, if you recall, where water went into the engine room, and so it was declared a total loss, right? These are the insurance compensate for the total loss situation, lah.

Mm-mm.

Okay. I'll go to the back of the queue, yeah.

Thanks.

Thank you, Raymond. Next, we have a question from Azmi.

Go ahead, Azmi.

Hi, Faizan. Can you hear me?

Yes.

Yes, we can hear you.

Yeah. Hi, all.

Thanks for the presentation. Just a couple of questions, also to follow up on Raymond's question earlier.

I think on the impairment just now mentioned $50 million out of that $84 million comes from Seri Bakawali and Balhaf. May I know where's the impairment coming from?

It's coming from the other vessels. In fact, the other vessels, we have benchmark against market value, especially those vessels that has come out from the long-term charter with PETRONAS or PLSB.

These are steam vessels that we are not able to find charterer for them, right, upon the spot rates. As a result of that, from a value in use, there's not much value, hence we have been depreciate, and on a quarterly basis, we benchmark the book value against the market value.

We have seen about 30% drop in market value throughout 2020 2025, right? Hence, those are the impairment on those vessels.

Essentially, those are the older steam vessels, lah, that we are not able to find home for them for now.

Right. It's all LNG, all?

All LNG, correct.

Just zooming into that just for my own note, I saw in the slides currently you have 41 vessels in total under the gas segment. May I know the split at the moment between all steam engine and the new modern one?

The steam is about 60% of the 40 vessels today.

60%. It's

about 60%.

Right. Also may I know what's the split between the spot exposure and the long-term charter?

It's almost 100%. I think 98% is term charter.

I think just to add to that, the remaining vessel that is not on charter, especially the steam vessel, is under lay-up, lah.

Right. Basically now almost 100% are on long-term?

That is correct.

All right. Also may I know in terms of all this long-term, what's the sort of the average rate as compared to the current spot rate for LNG?

We can't disclose those, lah, because those are all contracted rates.

Right, but roughly is it like higher or lower in general or?

The term rates are definitely higher than the current spot rates for the LNG vessels, right, especially for the steam vessels. I think the rates are

Just now we have that.

I think that was shared by Raja Azlan here. Because

the current spot rate, especially steam, are very low at $10,000 to $15,000 a day. The contracted rates are signed 10, 15 years ago, those would be at very much higher rates.

How about the modern ones?

The modern ones, those are also in line with the market.

In line, okay. Similarly, for petroleum, may I know for the 67 vessels within petroleum, what's the split between spot and long term?

For 2025, roughly the spot is about 20% to 25% against about 10% in 2024, all for the petroleum vessels.

All right. For going into 2026, will be around the same as well, 20% to 25%?

That's right.

That's right.

That is correct.

All right. The spot is mainly from Aframax, is it?

Aframax and some Suezmax, lah.

Okay. All right.

Also probably just the last one for me before I jump back to the queue, mention on the LNG like Raymond's question earlier, LNG vessels to Qatar, overall the earnings are minimal mainly because of the depreciation charges. Just sort of excluding depreciation, do you know roughly how much that would be?

These are all our joint venture, we don't have the information handy because we pick up the number as a share of profit for these vessels.

All right. Got it.

Thanks. I will jump back to the queue.

Thanks, everyone.

Thank you, Azmi. Next, we have a question from the chat.

This is from Jeremy: "For your FPSO Kelidang and FSO PNG, are these assets recognized via finance lease accounting or operating lease accounting?" That's the first question, first part of it.

"Are you able to share what are the capex for the two assets?"

For most of the floaters, the accounting treatment will be finance lease accounting, finance lease receivables, or should I say, during the construction, you will see construction revenue and construction profit throughout the construction period. As regards to the capex, I don't think we are able to share.

Those are quite confidential.

Also, there's another question from Jeremy as well about "How many projects are you pursuing in 2026, 2027?"

Let me try to answer that question. There's no specific target for us, but at the moment, our main focus is on being very focused and targeted growth trajectory.

We are looking at continue on LNG as our core business, similarly on our petroleum side. For FPSO, it's a bit unique.

We are currently supporting and working with PETRONAS on a number of new projects, but that is still too early to say anything, lah.

Right. Thank you.

Thank you, Encik Zahid. Next, we have a question from Raymond.

Go ahead, Raymond. Raymond?

Yeah. Hi.

Okay. I wanted to ask about the EPCIC revenue, right, for Kelidang and the FSO project, will you actually begin to recognize that from 2026 onwards?

Have you started construction? What is the status of those two projects right now?

It's just at the very beginning, minimal revenue this year. You'll start to see the revenue pick up next year, lah.

Okay. Next year, okay.

You typically in a FPSO construction contract, you do actually start recognizing the construction from quite immediate, right? That's what I noticed from other listed companies.

There will be some.

There will be some, but it's minimal. It will start to pick up next year.

If you look at the construction S-curve in terms of the progress, Raymond, I think this year we expect that it's going to be still at the lower end before it will pick up a lot more in '27 and '28,

lah. Sure.

Then just wanted to ask the question about the LNG side as well, right? If the fourth quarter was 96 $96 million loss and if you add back the impairment, it's still going to be a loss for the quarter.

This is the first time I think I've seen LNG in the red. What happened over there actually?

I think you do still have quite a number of your vessels on long-term contract to PETRONAS. Why did it actually drop to a loss in the fourth quarter?

I think I did mention, Raymond, earlier that we also had about $15 million write-off on inventory for gas vessels. Out of the $15 million, $11 million is an accounting write-off as part of our migration system on SAP from ECC to S/4.

We discovered this $11 million inventory that has been sitting in our books for cumulatively over the last I would say the last 10 years. That's when we discovered that it's no longer there.

It's not a valid cost that we can keep in our balance sheet, hence we have taken an accounting write-off of that $11 million. That partially explain the impact to the gas profitability for quarter 4.

Okay. Where did you put it on the P&L?

I think it's part of operating profit. Let me double check.

It is part of operating profit, right? Yep, because it is inventory.

Okay. Sure.

Thanks.

Thank you, Raymond. We have a next question from the chat.

This is from Hafiz. A question on gas: "How many LNGCs have been on lay-up to date?"

I think there's about eight

Eight or so, eight.

Eight vessels is currently on lay-up, Hafiz.

Another question from the chat, this is from Sing Keat. This is on the offshore segment: "So if we remove $17 million ringgit insurance gain and the PC impairment for the quarter, the offshore division will still be negative?"

Sorry, can you repeat?

If we remove the insurance gain and the impairment,

It will be positive.

It will be positive.

It's $75 million, not $17 million. Let me make that correction.

We have a question on new energy: "What is your generated cash flow from profitable new energy pillar?"

In 2025?

Yes.

At the moment,

it's still Negligible,

lah.

It's only from the construction under MHB. We have got the Tenaga project as well as the CCS construction.

It's negligible, as it's been picked up under MHB's income.

All the new deal that we announced, for example, the LCO2 carrier for the Northern Lights project will only deliver in 2029 earliest, lah. We won't see any contribution from that project yet.

Far, the only thing is coming is the revenue recognition that we have seen under MHB for the Tenaga, the offshore power station, as well as the Kasawari CCS.

Thank you, Encik Zahid. We have another question from Aimi, who is asking on capex guidance for 2026.

Generally, we don't give any guidance, Aimi, in term of our capital expenditure for the year. That's not our practice, lah.

What we can say that any project that we are proceeding or any opportunity that we are pursuing is still going to be within our affordability and our debt-ceiling capability, lah. We are going to maintain that discipline when it comes to capital expenditure.

That's what we have been doing for the many years in the past, lah.

We have a question on just a bit of clarity on the lay-up vessels. Mentioned that it's close to 100%.

They just want to understand that is it more economical to leave it by way of lay-up?

At the moment, the lay-up vessels like the old steam vessel, they are certainly not very competitive at all in the market at the moment. Instead of keeping it afloat with full crew and with bunker, lay-up is a better cost optimization alternative for us to reduce operating expenditure, lah.

There's also another related question to that. I think this is good for everyone's clarity.

We mentioned that it's 98% terms-to-spot for gas, and yet we have eight laid-up vessels. How does that work?

Just a bit of clarity in terms of what's inside that computation and what's not.

I think that the way we calculated, when the vessel is off into lay-up, we don't calculate that as part of our term or spot ratio, lah. It's completely out from that calculation.

Okay. We have time for one more last question.

We still have one. Okay.

This is from Ho Ming: "In the third quarter, your PAT is higher versus operating profit, and vice versa for Q4. Perhaps can you share again what are the extraordinary items to get better sense how petroleum has been performing?"

I think for third quarter comparison of third quarter to quarter 4, right? What I mentioned earlier, third quarter, petroleum had a one-off gain on unwinding of the IRS of about $12 million, as well as about $30 million gain on the disposal of Bunga Kasturi 5 and 6.

VLCC vessels, yeah. Yeah.

Those are the main reason, lah.

All right. Thank you.

Before we conclude today's conference call

Just a quick one, Faizan. Thank you very much to all the participants.

We appreciate your effort and commitment to understand our results and the engagement that we have, lah. We certainly looking forward to the next opportunity where we can meet again.

Back to you. Thank you so much.

All right. Thank you for your participation, everyone.

A PDF copy of today's presentation has been circulated to all attendees, and it will be available on our corporate website. A kind request to all sell-side analysts: we appreciate receiving a copy of your published reports.

Please do send them to the IR team for our reference. Thank you once again, and we wish everyone a pleasant evening ahead.

Thank you very much.

Thank you.

Thank you. Thank you.