Interim report
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 1 of 30 Quarter Ended 30 June 30 June 2026 2025 2026 2025 RM million RM million RM million RM million Revenue 4,793.4 2,721.3 7,684.8 5,537.4 Cost of sales (3,298.1) (1,762.3) (5,104.2) (3,593.9) GROSS PROFIT 1,495.3 959.0 2,580.6 1,943.5 Other operating income 175.5 165.3 303.1 467.3 General and administrative expenses (491.7) (369.1) (937.8) (798.4) OPERATING PROFIT 1,179.1 755.2 1,945.9 1,612.4 Impairment provisions (15.7) (115.5) (71.8) (146.3) Net gain on acquisition of subsidiaries - - - 55.8 Gain on disposal of ships 137.4 - 292.7 - Finance costs (111.7) (162.5) (224.9) (320.2) Share of (loss)/profit of associates (2.8) (2.4) 0.6 (1.6) Share of profit of joint ventures 20.7 9.5 33.2 19.6 PROFIT BEFORE TAX 1,207.0 484.3 1,975.7 1,219.7 Taxation (37.6) (14.9) (55.5) (38.7) PROFIT AFTER TAX 1,169.4 469.4 1,920.2 1,181.0 PROFIT ATTRIBUTABLE TO: Equity holders of the Corporation 1,154.3 464.4 1,895.7 1,170.1 Non-controlling interests 15.1 5.0 24.5 10.9 PROFIT AFTER TAX 1,169.4 469.4 1,920.2 1,181.0 BASIC EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE CORPORATION (SEN) 25.9 10.4 42.5 26.2 Cumulative 6 Months Ended
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 2 of 30 Cumulative 6 Months Ended 2026 2025 2026 2025 RM million RM million RM million RM million PROFIT AFTER TAX 1,169.4 469.4 1,920.2 1,181.0 OTHER COMPREHENSIVE INCOME/(LOSS) Items that may be reclassified to profit or loss in subsequent periods: Cash flow hedges: Fair value gain/(loss) Group 166.4 (71.0) 181.4 (281.0) Joint ventures 0.9 (2.1) 1.9 (18.0) Gain/(Loss) on currency translation * 326.8 (1,659.9) (1.3) (1,879.8) Total other comprehensive income/(loss) 494.1 (1,733.0) 182.0 (2,178.8) TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 1,663.5 (1,263.6) 2,102.2 (997.8) TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO: Equity holders of the Corporation 1,649.5 (1,258.3) 2,073.8 (989.6) Non-controlling interests 14.0 (5.3) 28.4 (8.2) TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 1,663.5 (1,263.6) 2,102.2 (997.8) * The following USD:RM exchange rates were used in the calculation of loss on currency translation: 2026 2025 2024 As at 30 June 4.05100 4.22900 4.72050 As at 31 March 4.03900 4.43250 4.73750 As at 31 December - 4.05300 4.46000 Quarter Ended 30 June 30 June
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 3 of 30 As at As at 30 June 2026 31 December 2025 RM million RM million NON CURRENT ASSETS Ships 19,156.8 18,649.1 Offshore floating asset 37.7 37.6 Other property, plant and equipment 2,248.8 2,214.3 Prepaid lease payments on land and buildings 173.2 176.9 Finance lease receivables LT 16,387.0 17,190.2 Investments in associates 717.7 663.1 Investments in joint ventures 601.5 605.5 Other non current assets 341.9 319.7 Derivative assets 345.1 194.6 Intangible assets 864.5 842.3 Deferred tax assets 104.0 104.0 40,978.2 40,997.3 CURRENT ASSETS Inventories 131.5 122.1 Finance lease receivables 1,687.9 1,665.7 Trade and other receivables, and contract assets 4,130.6 3,998.0 Cash, deposits and bank balances 7,197.9 6,096.4 Non current assets classified as held for sale - 134.9 13,147.9 12,017.1 TOTAL ASSETS 54,126.1 53,014.4 EQUITY Share capital 8,923.3 8,923.3 Treasury shares (0.3) (0.3) Reserves 4,900.5 4,722.4 Retained profits 21,275.7 20,362.0 Equity attributable to equity holders of the Corporation 35,099.2 34,007.4 Non-controlling interests 725.5 697.1 TOTAL EQUITY 35,824.7 34,704.5 NON CURRENT LIABILITIES Interest bearing loans and borrowings 7,738.4 10,959.0 Deferred income 340.6 709.0 Deferred tax liabilities 3.4 2.1 Other non current liabilities 54.7 54.7 Derivative liabilities - 22.5 8,137.1 11,747.3 CURRENT LIABILITIES Interest bearing loans and borrowings 5,218.8 1,921.4 Trade and other payables 4,904.1 4,585.3 Provision for taxation 41.3 54.7 Derivative liabilities 0.1 1.2 10,164.3 6,562.6 TOTAL LIABILITIES 18,301.4 18,309.9 TOTAL EQUITY AND LIABILITIES 54,126.1 53,014.4
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 4 of 30 Cumulative 30 June 2026 30 June 2025 RM million RM million Cash Flows from Operating Activities: Profit before tax 1,975.7 1,219.7 Writeback of impairment loss on finance lease receivables, trade and other receivables (5.1) (4.6) Impairment loss on receivables 1.0 4.1 Depreciation of ships, offshore floating asset and other property, plant and equipment 1,238.8 1,007.0 Amortisation of prepaid lease payments 3.7 3.7 Impairment provisions 71.8 146.3 Loss on modification of finance lease contract 9.7 65.5 Net gain on acquisition of subsidiaries - (55.8) Net unrealised foreign exchange loss/(gain) 7.4 (26.2) Gain on disposal of ships (292.7) - Dividend income from equity investments (0.1) (0.5) Interest expense 215.1 305.4 Finance income (115.2) (118.7) Net fair value movement in other investments (1.1) 8.6 Changes in fair value of hedging derivatives 0.3 3.4 Amortisation of intangibles 0.6 0.9 Amortisation of upfront fees for borrowings 9.8 14.8 Share of (profit)/loss of associates (0.6) 1.6 Share of profit of joint ventures (33.2) (19.6) Amortisation of deferred income (361.3) (47.1) Operating profit before working capital changes 2,724.6 2,508.5 Inventories (20.2) 15.2 Trade and other receivables, and contract assets 611.3 184.1 Trade and other payables 375.9 (281.1) Cash generated from operations 3,691.6 2,426.7 Net tax paid (69.8) (51.6) Net cash generated from operating activities 3,621.8 2,375.1 6 Months Ended
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 5 of 30 Cumulative 30 June 2026 30 June 2025 RM million RM million Cash Flows from Investing Activities: Purchase of ships, other property, plant and equipment (2,761.4) (981.5) Acquisition of subsidiaries, net of cash acquired - (262.9) Investment in associates (54.5) (52.8) Proceeds from disposal of ships 1,388.1 - Dividend received from: Other investments 0.1 0.5 Joint ventures and an associate 41.3 55.4 Cash acquired on acquisition of subsidiaries - 164.6 Loan to associates - (8.8) Interest received 101.4 107.1 Net fixed deposit placements (585.8) (288.7) Net cash used in investing activities (1,870.8) (1,267.1) Cash Flows from Financing Activities: Drawdown of interest bearing loans and borrowings 1,783.9 6,414.8 Repayment of interest bearing loans and borrowings (1,612.5) (6,587.8) Repayment of lease liabilities (103.4) (75.9) Dividends paid to the equity holders of the Corporation (982.0) (892.7) Dividends paid to non-controlling interest of subsidiary - (10.7) Interest paid (336.4) (326.2) Placement of cash pledged with banks (restricted for use) (162.5) (29.5) Net cash used in financing activities (1,412.9) (1,508.0) Net change in cash and cash equivalents 338.1 (400.0) Cash & cash equivalents at the beginning of the year 4,833.7 5,310.0 Currency translation differences 15.2 (236.3) Cash & cash equivalents at the end of the year 5,187.0 4,673.7 Cash pledged with banks - restricted for use and deposited with maturity more than 90 days 2,010.9 1,602.9 Cash, deposits and bank balances 7,197.9 6,276.6 6 Months Ended
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025. Page 6 of 30 Total equity Equity attributable to Other Other Currency Non- equity holders of Share Treasury Retained reserves, capital Capital Hedging translation controlling the Corporation capital* shares profits total reserve reserve reserve reserve Interests RM million RM million RM million RM million RM million RM million RM million RM million RM million RM million RM million 6 MONTHS ENDED 30 JUNE 2026 At 1 January 2026 34,704.5 34,007.4 8,923.3 (0.3) 20,362.0 4,722.4 60.2 435.2 206.1 4,020.9 697.1 Total comprehensive income 2,102.2 2,073.8 - - 1,895.7 178.1 - - 181.4 (3.3) 28.4 Transactions with equity holders Dividends (982.0) (982.0) - - (982.0) - - - - - - Total transactions with equity holders (982.0) (982.0) - - (982.0) - - - - - - At 30 June 2026 35,824.7 35,099.2 8,923.3 (0.3) 21,275.7 4,900.5 60.2 435.2 387.5 4,017.6 725.5 6 MONTHS ENDED 30 JUNE 2025 At 1 January 2025 38,313.5 37,604.1 8,923.3 (0.3) 19,083.0 9,598.1 60.0 435.2 601.8 8,501.1 709.4 Total comprehensive (loss)/income (997.8) (989.6) - - 1,170.1 (2,159.7) - - (292.9) (1,866.8) (8.2) Transactions with equity holders Dividends (903.5) (892.7) - - (892.7) - - - - - (10.8) Total transactions with equity holders (903.5) (892.7) - - (892.7) - - - - - (10.8) At 30 June 2025 36,412.2 35,721.8 8,923.3 (0.3) 19,360.4 7,438.4 60.0 435.2 308.9 6,634.3 690.4 * Included in share capital is one preference share of RM1. Attributable to equity holders of the Corporation
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 Page 7 of 30 A1. CORPORATE INFORMATION MISC Berhad is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on Bursa Malaysia Securities Berhad. These unaudited condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 27 August 2026. A2. BASIS OF PREPARATION These unaudited condensed consolidated interim financial statements for the period ended 30 June 2026 have been prepared in accordance with MFRS 134 Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The results for this interim period are unaudited and should be read in conjunction with the Group's audited financial statements and the accompanying notes for the year ended 31 December 2025. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to understand the changes in the financial position and performance of the Group since the year ended 31 December 2025. The audited financial statements of the Group for the year ended 31 December 2025 are available upon request from the Corporation's registered office located at Level 25, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur. The main functional currency of the Group is United States Dollar (“USD”) while these interim financial statements are presented in Ringgit Malaysia (“RM”). A3. SIGNIFICANT ACCOUNTING POLICIES The financial information presented herein has been prepared in accordance with the accounting policies to be used in preparing the Group’s annual financial statements for the year ending 31 December 2026 under the Malaysian Financial Reporting Standards (“MFRS”) framework. These policies do not differ significantly from those used in the Group’s audited financial statements for the year ended 31 December 2025 except as disclosed below. As at 1 January 2026, the Group and the Corporation have adopted the following MFRS and Amendments to MFRSs (collectively referred to as "pronouncements") that have been issued by the Malaysian Accounting Standard s Board (“MASB”): Effective for annual periods beginning on or after 1 January 2026: • Amendments to MFRS 9: Financial Instruments and MFRS 7: Financial Instruments Disclosures (Classification and Measurement of Financial Instruments) • Annual Improvements to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards, MFRS 7: Financial Instruments: Disclosures, MFRS 9: Financial Instruments, MFRS 10: Consolidated Financial Statements and MFRS 107: Statement of Cash Flows (Annual Improvements to MFRS Accounting Standards – Volume 11) The adoption of the above-mentioned pronouncements does not have any material impact on the financial statements of the Group and the Corporation.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 8 of 30 A4. EXCEPTIONAL ITEMS There were no exceptional items during the current financial period other than as disclosed in the condensed consolidated interim financial statements. A5. MATERIAL CHANGES IN ACCOUNTING ESTIMATES During the quarter, the Group reassessed the estimated useful lives of selected steam turbine vessels within the GAS segment following a reassessment of the vessels' expected economic benefits and anticipated utilisation over their remaining service period. As a result, the useful lives of the affected vessels were revised to better reflect management's latest assessment of their expected pattern of economic consumption. The revision represents a change in accounting estimate under MFRS 108 and has been applied prospectively from 1 April 2026. Consequently, depreciation expense increased by RM86.6 million for the current quarter and for the financial period ended 30 June 2026. A6. AUDIT REPORT OF PRECEDING ANNUAL FINANCIAL STATEMENTS The audited financial statements of the Group for the year ended 31 December 2025 were not subjected to any audit qualification. A7. CHANGES IN COMPOSITION OF THE GROUP a) The following indirect wholly owned subsidiaries of the Corporation (“Companies”), had convened their final meetings to conclude their members’ voluntary winding-up (“Final Meetings”). The Returns by Liquidator relating to the Final Meetings ("Returns") were lodged with the Companies Commission of Malaysia and the Official Receiver, following which the Companies were dissolved on the respective dates below: Company Name Date of Final Meetings & Lodgment Date of the Returns Date of Dissolution a. Puteri Firus Sdn. Bhd. 29 December 2025 29 March 2026 b. Puteri Delima Sdn. Bhd. 31 December 2025 31 March 2026 c. Puteri Intan Sdn. Bhd. 31 December 2025 31 March 2026 d. Puteri Nilam Sdn. Bhd. 31 December 2025 31 March 2026 b) On 24 February 2026, the Corporation incorporated two (2) new subsidiaries under the Singapore Companies Act 1967, namely MG Ventures One Pte. Ltd. (“MGV1”) and MG Ventures Two Pte. Ltd. (“MGV2”), for the purpose of owning and operating Very Large Ethane Carriers (“VLECs”). MGV1 and MGV2 are wholly-owned subsidiaries of MISC Gas Tankers Two (L) Pte. Ltd., an indirect wholly-owned subsidiary of the Corporation. c) On 31 March 2026, the Corporation incorporated a new subsidiary under the Brunei Companies Act, Chapter 39, namely MISC Kelidang (B) Sdn Bhd (“MISC Kelidang”), for the purpose of owning and operating a floating production unit. MISC Kelidang is 99.99% owned by MISC OBU One (L) Pte. Ltd. and 0.01% owned by MISC OBU Holdings (L) Pte. Ltd., both of which are indirect wholly-owned subsidiaries of the Corporation. A8. DISCONTINUED OPERATIONS There were no discontinued operations in the Group during the financial period under review. A9. SEASONALITY OF OPERATIONS The businesses of the Group are subject to market fluctuations.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 9 of 30 A10. REVENUE The Group's revenue by segment is as follows: * Revenue from charter consists of charter income and finance income on lease receivables. A11. SEGMENT REPORT The operating segments of the Group are as follows: Gas Assets & Solutions - provision of Liquefied Natural Gas (“LNG”) carrier services and non -conventional gas asset solutions; Petroleum & Products - provision of crude and petroleum tanker services; Offshore Business - own, lease, operation and maintenance of offshore , floating, production and offloading terminals; Marine & Heavy Engineering - marine repair, marine conversion and engineering and construction works; and Others - integrated marine services, port & terminal services, maritime education & training and other diversified businesses. Quarter 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Ended 30 June Revenue from contracts with customers 15.6 14.6 1,219.5 618.7 700.0 18.6 984.8 431.6 98.4 20.7 3,018.3 1,104.2 Revenue from charter * 401.6 509.8 1,027.2 671.6 346.3 435.7 - - - - 1,775.1 1,617.1 417.2 524.4 2,246.7 1,290.3 1,046.3 454.3 984.8 431.6 98.4 20.7 4,793.4 2,721.3 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Cumulative 6 months Revenue from contracts with customers 19.1 63.4 2,067.7 1,228.9 779.4 231.1 1,508.8 884.7 133.7 (15.3) 4,508.7 2,392.8 Revenue from charter * 792.5 1,097.2 1,694.3 1,313.8 689.3 733.6 - - - - 3,176.1 3,144.6 811.6 1,160.6 3,762.0 2,542.7 1,468.7 964.7 1,508.8 884.7 133.7 (15.3) 7,684.8 5,537.4 RM million RM million RM million RM million RM million Offshore Business Marine & Heavy Engineering Others, Eliminations and Adjustments RM million Petroleum & Products Offshore Marine & Heavy Engineering Others, Eliminations and Adjustments Total Total RM millionRM million RM million RM million RM million RM million Petroleum & ProductsGas Assets & Solutions Gas Assets & Solutions
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 10 of 30 Revenue and operating results by segments are as follows: * Comprises other diversified businesses, net foreign exchange differences, interest income, dividend income from quoted investment, corporate expenses, eliminations and adjustments. 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Quarter Ended 30 June Revenue External sales 420.7 524.4 2,246.1 1,289.8 1,040.9 450.9 968.8 409.9 116.9 46.3 4,793.4 2,721.3 Inter-segment - - 0.6 0.5 5.4 3.4 16.0 21.7 (22.0) (25.6) - - 420.7 524.4 2,246.7 1,290.3 1,046.3 454.3 984.8 431.6 94.9 20.7 4,793.4 2,721.3 Operating profit/(loss) 138.7 239.4 857.7 301.1 180.1 227.5 67.7 12.7 (65.1) (25.5) 1,179.1 755.2 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Cumulative 6 months Revenue External sales 811.6 1,160.6 3,760.4 2,542.2 1,461.4 949.6 1,482.1 788.4 169.3 96.6 7,684.8 5,537.4 Inter-segment - - 1.6 0.5 7.3 15.1 26.7 96.3 (35.6) (111.9) - - 811.6 1,160.6 3,762.0 2,542.7 1,468.7 964.7 1,508.8 884.7 133.7 (15.3) 7,684.8 5,537.4 Operating profit/(loss) 352.9 543.2 1,290.7 671.2 375.3 488.6 85.9 28.5 (158.9) (119.1) 1,945.9 1,612.4 Gas Assets & Solutions Gas Assets & Solutions RM millionRM million RM million RM million RM million RM million RM million Petroleum & Products Offshore Business Marine & Heavy Engineering Others, Eliminations and Adjustments * Total RM million RM million RM million RM million RM million Petroleum & Products Offshore Business Marine & Heavy Engineering Others, Eliminations and Adjustments * Total
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 11 of 30 A12. PROFIT FOR THE PERIOD Included in the profit for the period are the following items: A13. SHIPS, OFFSHORE FLOATING ASSET AND OTHER PROPERTY, PLANT AND EQUIPMENT Included in ships , offshore floating asset and other property, plant and equipment are construction work -in-progress, mainly for the construction of ships totalling RM3,180.5 million (31 December 2025: RM2,484.5 million) and right-of-use assets amounting to RM461.2 million (31 December 2025: RM562.2 million). The volatility of charter hire rates, expired charter contracts or contracts approaching expiry dates were identified as indications that the carrying amount of certain ships may be impaired. The Group has performed a review of the recoverable amount of the ships at the end of the quarter. The recoverable amount was based on the higher of fair value less costs of disposal or value-in-use, and determined at the cash generating unit (“CGU”) level of each asset. The review led to the recognition of net impairment losses of ships amounting to R M71.8 million in the current financial period as the recoverable amount of the ships was lower than their carrying value. Cumulative 6 Months Ended 2026 2025 2026 2025 RM million RM million RM million RM million 64.8 60.2 115.2 118.7 102.8 75.5 159.3 302.7 Interest expense (105.9) (158.7) (215.1) (305.4) Amortisation of upfront fees for borrowings (5.8) (3.8) (9.8) (14.8) Depreciation of ships, offshore floating asset and other property, plant and equipment (791.7) (514.2) (1,238.8) (1,007.0) Amortisation of prepaid lease payments (1.8) (1.8) (3.7) (3.7) Amortisation of intangibles (0.3) (0.5) (0.6) (0.9) Gain on disposal of ships 137.4 - 292.7 - Impairment provisions (15.7) (115.5) (71.8) (146.3) Impairment loss on receivables - (2.9) (1.0) (4.1) Net fair value movement in other investments 3.2 (7.5) 1.1 (8.6) Changes in fair value of hedging derivatives (0.2) 1.6 (0.3) (3.4) Loss on modification of finance lease contract (2.7) (3.6) (9.7) (65.5) Net gain on acquisition of subsidiaries - - - 55.8 Write back of impairment loss on finance lease receivables, trade and other receivables (0.1) 2.5 5.1 4.6 Net realised foreign exchange gain/(loss) 3.2 (3.1) 12.4 (7.1) Net unrealised foreign exchange (loss)/gain (4.3) 28.9 (7.4) 26.2 Other income Quarter Ended Finance income 30 June 30 June
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 12 of 30 A14. INTANGIBLE ASSETS Goodwill is tested for impairment annually, or when circumstances indicate that the carrying value may be impaired. The Group's goodwill impairment test is a comparison of the goodwill's carrying value against its recoverable amount. The recoverable amounts are based on value-in-use for cash generating units ("CGU"), calculated using cash flow projections. The key assumptions u sed to determi ne the value -in-use of CGUs were disclosed in the annual consolidated financial statements for the year ended 31 December 2025. The other intangible assets relate to the fair value of long-term customer contracts from acquisition of a subsidiary at the date of acquisition, which is amortised over the remaining contract periods. Goodwill Other Intangible Total Assets RM million RM million RM million Cost At 1 January 2025 1,061.3 427.2 1,488.5 Additions - 13.8 13.8 Currency translation differences (90.3) - (90.3) At 31 December 2025 971.0 441.0 1,412.0 Additions - 17.5 17.5 Currency translation differences 1.2 4.1 5.3 At 30 June 2026 972.2 462.6 1,434.8 Accumulated amortisation and impairment At 1 January 2025 162.5 405.4 567.9 Amortisation - 1.8 1.8 At 31 December 2025 162.5 407.2 569.7 Amortisation - 0.6 0.6 At 30 June 2026 162.5 407.8 570.3 Net carrying amount At 1 January 2025 898.8 21.8 920.6 At 31 December 2025 808.5 33.8 842.3 At 30 June 2026 809.7 54.8 864.5
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 13 of 30 A15. FAIR VALUE HIERARCHY The Group uses the following hierarchy to determine the fair value of all financial instruments carried at fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets and liabilities Level 2 - Inputs that are based on observable market data, either directly or indirectly Level 3 - Inputs that are not based on observable market data As at the reporting date, the Group held the following financial assets and liabilities that are measured at fair value: No transfers between any levels of the fair value hierarchy took place during the current and prior year . There were also no changes in the purpose of any financial instruments that subsequently caused a change in classification of those instruments. Level 1 Level 2 Level 3 Total RM million RM million RM million RM million At 30 June 2026 Financial Assets Quoted investments 58.4 - - 58.4 Unquoted investments - - 50.5 50.5 Interest rate swaps designated as hedging instruments - 345.1 - 345.1 58.4 345.1 50.5 454.0 Non-financial assets: Non-current assets classified as held for sale - - - - Financial Liabilities Forward currency contracts - (0.1) - (0.1) Interest rate swaps designated as hedging instruments - - - - - (0.1) - (0.1) Level 1 Level 2 Level 3 Total RM million RM million RM million RM million At 31 December 2025 Financial Assets Quoted investments 57.3 - - 57.3 Unquoted investments - - 50.5 50.5 Interest rate swaps designated as hedging instruments - 194.6 - 194.6 57.3 194.6 50.5 302.4 Non-financial assets: Non-current assets classified as held for sale - - 134.9 134.9 Financial Liabilities Forward currency contracts - (1.2) - (1.2) Interest rate swaps designated as hedging instruments - (22.5) - (22.5) - (23.7) - (23.7)
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 14 of 30 A16. ISSUANCE OR REPAYMENT OF DEBT AND EQUITY SECURITIES There was no issuance or repayment of debt and equity securities made by the Group during the period ended 30 June 2026. A17. INTEREST BEARING LOANS AND BORROWINGS i) The tenure of Group borrowings, classified as short and long term as well as secured and unsecured, are as follows: ii) Foreign borrowings in United States Dollar equivalent as at 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 RM million RM million Short Term Borrowings Secured 1,397.8 1,418.4 Unsecured 3,648.4 313.7 Lease liabilities 172.6 189.3 5,218.8 1,921.4 Long Term Borrowings Secured 7,337.5 8,052.2 Unsecured - 2,429.3 Lease liabilities 400.9 477.5 7,738.4 10,959.0 Total 12,957.2 12,880.4 30 June 2026 31 December 2025 RM million RM million 11,982.0 12,283.2 United States Dollar Borrowings
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART A – EXPLANATORY NOTES PURSUANT TO MFRS 134 (continued) Page 15 of 30 A18. DIVIDENDS PAID The Corporation paid the following dividends in the period ended 30 June 2026 and year ended 31 December 2025: A19. RELATED PARTY TRANSACTIONS There were no significant transactions entered with related parties for the period ended 30 June 2026 compared to the related party transactions disclosed in the audited consolidated financial statements of the Group for the year ended 31 December 2025. A20. CAPITAL COMMITMENTS The Group’s outstanding commitments in respect of capital expenditure not provided for in the financial statements as at 30 June 2026 and 31 December 2025 are as follows: A21. CONTINGENT LIABILITIES There were no material contingent liabilities as at 30 June 2026. A22. SUBSEQUENT MATERIAL EVENTS There were no material events subsequent to the period end date. 30 June 2026 31 December 2025 RM million RM million In respect of the financial year ended 31 December 2024: Fourth tax exempt dividend of 12.0 sen per share paid on 20 March 2025 - 535.6 In respect of the financial year ended 31 December 2025: First tax exempt dividend of 8.0 sen per share paid on 26 June 2025 - 357.1 Second tax exempt dividend of 8.0 sen per share paid on 25 September 2025 - 357.1 Third tax exempt dividend of 8.0 sen per share paid on 18 December 2025 - 357.1 Fourth tax exempt dividend of 14.0 sen per share paid on 26 March 2026 624.9 - In respect of the financial year ended 31 December 2026: First tax exempt dividend of 8.0 sen per share paid on 26 June 2026 357.1 30 June 2026 31 December 2025 RM million RM million Approved and contracted for: Group 11,963.5 7,858.9 11,963.5 7,858.9
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES Page 16 of 30 B1. REVIEW OF GROUP PERFORMANCE Cumulative 6 Months Ended 2026 2025 2026 2025 RM million RM million RM million RM million Revenue Gas Assets & Solutions 417.2 524.4 811.6 1,160.6 Petroleum & Products 2,246.7 1,290.3 3,762.0 2,542.7 Offshore 1,046.3 454.3 1,468.7 964.7 Marine & Heavy Engineering 984.8 431.6 1,508.8 884.7 Others, Eliminations and Adjustments 98.4 20.7 133.7 (15.3) Total Revenue 4,793.4 2,721.3 7,684.8 5,537.4 Operating Profit/(Loss) Gas Assets & Solutions 138.7 239.4 352.9 543.2 Petroleum & Products 857.7 301.1 1,290.7 671.2 Offshore 180.1 227.5 375.3 488.6 Marine & Heavy Engineering 67.7 12.7 85.9 28.5 Others, Eliminations and Adjustments (65.1) (25.5) (158.9) (119.1) Total Operating Profit 1,179.1 755.2 1,945.9 1,612.4 Impairment provisions (15.7) (115.5) (71.8) (146.3) Net gain on acquisition of subsidiaries - - - 55.8 Gain on disposal of ships 137.4 - 292.7 - Finance costs (111.7) (162.5) (224.9) (320.2) Share of (loss)/profit of associates (2.8) (2.4) 0.6 (1.6) Share of profit of joint ventures 20.7 9.5 33.2 19.6 Profit Before Tax 1,207.0 484.3 1,975.7 1,219.7 Quarter Ended 30 June 30 June
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 17 of 30 Current quarter’s performance against the quarter ended 30 June 2025 Group revenue of RM 4,793.4 million was RM 2,072.1 million or 76.1% higher than the quarter ended 3 0 June 2025 (“corresponding quarter”) of RM2,721.3 million, while Group operating profit of RM1,179.1 million was RM423.9 million or 56.1% higher than the corresponding quarter’s profit of RM755.2 million. The Group’s reported performance was also affected by foreign exchange movements during the quarter, in line with the strengthening of Ringgit Malaysia against the United States Dollar. The variances in Group performance by segments are further explained below. Gas Assets & Solutions Revenue of RM417.2 million was RM107.2 million or 20.4% lower than the corresponding quarter’s revenue of RM524.4 million due to no construction revenue recogni sed in the current quarter and lower earning days resulting from vessels disposal, vessels lay-up and lower charter rates. Operating profit of RM 138.7 million was RM 100.7 million or 42.1% lower than the corresponding quarter’s profit of RM239.4 million due to lower revenue as explained above and accelerated depreciation on older vessels, offset against lower vessel operating costs and no construction cost recognised in the current quarter. Petroleum & Products Shipping Revenue of RM 2,246.7 million was RM 956.4 million or 74.1% higher than the corresponding quarter’s revenue of RM1,290.3 million, primarily driven by higher freight rates and earning days achieved , partially offset against foreign exchange impact arising from the strengthening of Ringgit Malaysia (“RM”) against United States Dollar (“USD”) in the current quarter. Operating profit of RM 857.7 million was RM 556.6 million higher than the corresponding quarter’s profit of RM 301.1 million in tandem with higher revenue, partially offset by strengthening of RM against USD as mentioned above. Offshore Business Revenue of RM1,046.3 million was RM592.0 million higher than the corresponding quarter’s revenue of RM454.3 million, mainly due to higher construction revenue recognised in the current quarter following higher construction progress of a Floating Storage and Offloading (FSO) and Floating Production Unit (FPU). Operating profit of RM 180.1 million was RM 47.4 million or 20.8% lower than the corresponding quarter’s profit of RM227.5 million following the operational shutdown of a Floating Production, Storage, and Offloading (FPSO). Marine & Heavy Engineering Revenue of RM984.8 million was RM553.2 million higher than the corresponding quarter’s revenue of RM431.6 million primarily driven by higher revenue contribution from the Heavy Engineering segment from the ongoing projects advancing into higher construction phases coupled with finalisation of post sail -away projects. Operating profit of RM67.7 million was RM55.0 million higher than the corresponding quarter’s profit of RM12.7 million mainly attributable to higher revenue recognised during the quarter and the finalisation of post sail -away projects. Others, Eliminations and Adjustments Others segment’s operating loss was RM39.6 million higher than the corresponding quarter’s loss mainly due to higher corporate expenses.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 18 of 30 Current 6 months period performance against the 6 months period ended 30 June 2025 Group revenue of RM7,684.8 million was RM2,147.4 million or 38.8% higher than the revenue for the 6 -month period ended 30 June 2025 (“ corresponding period”) of RM5,537.4 million mainly due to higher revenue from Petroleum & Products Shipping segment following higher freight rates and earning days achieved. Additionally, the higher revenue in the Offshore Business segment from higher construction progress of an FSO and FPU, and higher revenue in the Marine & Heavy Engineering segment mainly attributable to the ongoing projects advancing into higher construction phases. Group operating profit of RM1,945.9 million was RM333.5 million or 20.7% higher than the corresponding period’s profit of RM1,612.4 million mainly due to higher margin in the Petroleum & Products Shipping segment. The increase in the operating profit was however offset by the lower profit in the Gas Assets & Solutions segment from no construction profit recogni sed in the current period and lower revenue following lower earning days result ing from vessels disposal, vessels lay-up and lower charter rates. Additionally, lower operating profit from the Offshore Business, primarily contributed from operational shutdown of an FPSO. B2. COMPARISON WITH PRECEDING QUARTER'S RESULTS Group revenue of RM 4,793.4 million was RM 1,902.0 million or 65.8% higher than the preceding quarter’s revenue of RM2,891.4 million contributed by higher revenue from Petroleum & Products Shipping segment from higher freight rates and earning days achieved, Offshore Business segment from higher construction progress of an FSO and FPU and Marine & Heavy Engineering segment following progress in ongoing projects coupled with finalisation of post sail-away projects. Group operating profit of RM1,179.1 million was RM412.3 million or 53.8% higher than the preceding quarter's profit of RM766.8 million mainly due to higher margin in the Petroleum & Products Shipping segment. Profit before tax of RM1,207.0 million was RM438.3 million or 57.0% higher than the preceding quarter's profit of RM768.7 million, primarily attributable to higher operating profit as mentioned above and lower impairment provisions recognised in the current quarter, offset with lower gain on disposal of ships. GROUP Quarter Ended Quarter Ended 30 June 2026 RM million RM million Revenue 4,793.4 2,891.4 Operating Profit 1,179.1 766.8 Impairment provisions (15.7) (56.1) Gain on disposal of ships 137.4 155.3 Finance costs (111.7) (113.2) Share of (loss)/profit of associates (2.8) 3.4 Share of profit of joint ventures 20.7 12.5 Profit Before Tax 1,207.0 768.7 31 March 2026
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 19 of 30 B3. REVIEW OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 As at 31 December 2025 RM million RM million Total assets 54,126.1 53,014.4 Total equity attributable to equity holders of the Corporation 35,099.2 34,007.4 Total liabilities 18,301.4 18,309.9 The Group's total asset s at RM5 4,126.1 million was higher by RM1,111.7 million or 2.1% mainly due to higher cash , deposits and bank balances. Total equity attributable to equity holders of the Corporation increased by RM1,091.8 million or 3.2% to RM35,099.2 million, arising from profit for the period, partially offset by dividends declared and paid to equity holders of the Corporation. Total liabilities remained broadly stable at RM18,301.4 million as compared to RM18,309.9 million. B4. REVIEW OF CONSOLIDATED STATEMENT OF CASH FLOWS Cumulative 6 Months Ended 30 June 2026 30 June 2025 RM million RM million Net cash generated from operating activities 3,621.8 2,375.1 Net cash used in investing activities (1,870.8) (1,267.1) Net cash used in financing activities (1,412.9) (1,508.0) Net change in cash and cash equivalents 338.1 (400.0) The Group’s net cash generated from operating activities of RM3,621.8 million was higher by 52.5% or RM1,246.7 million compared to RM2,375.1 million in the corresponding period , mainly due to higher revenue and profitability from Petroleum & Products Shipping segment. The Group’s net cash used in investing activities of RM1,870.8 million was higher by 47.6% or RM603.7 million compared to RM1,267.1 million in the corresponding period mainly due to higher payments on capital expenditure for ships, property, plant and equipment in the current period. The Group’s net cash used in financing activities of RM1,412.9 million was lower by 6.3% or RM95.1 million compared to RM1,508.0 million in the corresponding period mainly due to lower net drawdown of interest -bearing loans and borrowings.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 20 of 30 B5. GROUP CURRENT YEAR PROSPECTS Robust LNG supply growth, particularly in the Americas, continues to support a healthy outlook for long-term LNG carrier (LNGC) charter rates. Modern LNGCs are expected to remain the preferred choice for medium - and long -term employment, while older steam turbine vessels will continue to face greater competitive pressure. Meanwhile, uncertainties surrounding the Strait of Hormuz are expected to keep spot charter rates volatile in the near term. In addition to the contract s secured in the first half of the year , the segment remains focused on progressing its fleet rejuvenation strategy through the delivery of modern, fuel -efficient LNGCs and securing new long ‑term charters. At the same time, it is proactively managing vessels currently off charter through measures including lay ‑ups to optimise costs, selectively monetising assets to redeploy capital and exploring opportunities to repurpose vessels. In the Petroleum & Products Shipping segment, ongoing geopolitical uncertainties and shifting trade flows arising from Middle East supply disruptions are likely to sustain market volatility. Nevertheless, crude tanker rates and tonne -mile demand are expected to be supported by potential inventory rebuilding following drawdowns earlier this year and robust long-haul crude exports from the Atlantic Basin. The segment remains focused on sustaini ng secured and recurring income, while advancing the rejuvenation of its fleet with dual -fuel vessels, broadening its contracted employment portfolio and optimising fleet deployment to capture market opportunities and enhance earnings. The Offshore Business segment is expected to remain resilient, underpinned by a strong pipeline of Floating Production Storage and Offloading (FPSO) contract awards across Asia, South America and Africa. Growth prospects in the offshore market are supported by healthy project sanctioning activity with six contracts globally awarded to date. The segment is focused on the execution of secured projects while continuing to pursue opportunities across high ‑potential markets, reinforcing its market position and supporting long‑term value creation. In the Marine & Heavy Engineering segment, the operating environment is expected to remain dynamic amid geopolitical and economic uncertainties and shifting investment priorities. Despite these headwinds, energy security concerns, coupled with continued investment in upstream activities and energy infrastructure, are anticipated to support industry activity and create opportunities for the segment. Against this backdrop, the Heavy Engineering sub -segment will selectively pursue a high -quality order book across conventional and new energy projects, d omestically and internationally, while maintaining a balanced portfolio and execution discipline . Meanwhile, in the Marine sub-segment, the outlook for long-term marine repair demand is expected to remain resilient driven by LNGC dry docking requirements. Across the segment, ongoing yard modernisation is expected to further enhance productivity, operational efficiency and competitiveness. B6. PROFIT FORECAST AND PROFIT GUARANTEE The Group does not publish any profit forecast or profit guarantee.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 21 of 30 B7. TAXATION Section 54A of the Malaysian Income Tax Act, 1967 was amended effective from Year of Assessment (“YA”) 2012, in which the tax exemption on shipping profits was reduced from 100% to 70%. The implementation of the amended Section 54A, however, has previously been deferred up to YA 2023 via several gazette orders issued by the Ministry of Finance (“MOF”). On 5 July 2024, MOF issued another Gazette Order (i.e. Income Tax (Exemption for Malaysian Ship) Order 2024 (P.U. (A) 184) granting a further extension of the 100% shipping tax exemption from YA 2024 to YA 2026. The exemption is granted subject to Malaysian shipping companies comply ing with the minimum substance requirements in terms of annual operating expenditure and minimum number of full -time Malaysian employees for each Malaysian ship for both shore employees and ship personnel. Based on the latest Gazette Order, the Group would be able to continue to enjoy the 100% shipping tax exemption up to YA 2026 on the basis that the substance requirements as per Gazette Order are duly met . The taxation charge in the accounts is attributable to tax in respect of another jurisdiction and other activities of the Group. B8. STATUS OF CORPORATE PROPOSALS ANNOUNCED BUT NOT COMPLETED There were no outstanding corporate proposals submitted by the Group for the quarter ended 30 June 2026. Cumulative Quarter Ended 6 Months Ended 30 June 2026 30 June 2026 RM million RM million Taxation for the period comprises the following charge: Income tax charge - current period 36.5 60.0 - prior year (0.6) (3.7) Deferred taxation 1.7 (0.8) 37.6 55.5
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 22 of 30 B9. CHANGES IN MATERIAL LITIGATION i) Gumusut-Kakap Semi-Floating Production System (L) Limited (“GKL”) and Sabah Shell Petroleum Limited (“SSPC”) We refer to previous announcements made by MISC Berhad (“MISC or the Company”) in respect of the Arbitration Proceedings commenced by the Company’s wholly -owned subsidiary, Gumusut -Kakap Semi -Floating Production System (L) Limited (“GKL”) against Sabah She ll Petroleum Company Limited (“SSPC”), in particular to the announcement on 10 April 2020 regarding the award issued by the Arbitral Tribunal, on 30 December 2022 regarding the decision of the High Court and on 5 December 2025 regarding the decision of the Court of Appeal . Arbitral Award As announced on 10 April 2020, the Arbitral Tribunal issued its Award on 8 April 2020 (“Award”) which found, among others, as follows: (1) That GKL’s claim in relation to the achievement of Handover Completion under the Contract was rejected and the Arbitral Tribunal decided that Handover Completion did not occur prior to 11 October 2014; (2) In relation to GKL’s claims for Variation Works, GKL was awarded: a. USD222.1 million, b. That an amount of USD88.8 million is deducted from USD222.1 million being manpower costs incurred by way of the Variation Works for rectification of defects (which the Tribunal held GKL to be liable for); c. That the remainder sum of USD133.3 million is converted to an Additional Lease Rate and represents a reduction from the Additional Lease Rate awarded by the Adjudication Awards. The new Additional Lease Rate is payable from the date of the Award. The base rate is unaffected by the Award and will continue for the Fixed Term. (3) SSPC was awarded the following sums: a. USD236.4 million for defects rectification work (inclusive of USD15.0 million for Liquidated Damages); b. USD88.3 million as a refund for overpayment of the Additional Lease Rate originally awarded in the Adjudication Proceedings for the period of April 2014 to January 2020 due to the reduction of the Additional Lease Rate as set out in Item 2(c) above; c. Applicable interest up to the date of the Award; d. Costs of USD12.7 million; e. Interest at 6.65% on the sums awarded from the date of the Award until payment. (4) SSPC is entitled to set -off the above claims against moneys owed by SSPC to GKL under the Contract, including but not limited to the lease rate. (5) Any GST payable pursuant to the Goods and Services Tax Act 2014 to be accounted by the parties.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 23 of 30 Proceedings Post the Award Setting Aside OS at the High Court On 7 July 2020, GKL filed an Originating Summons to set aside parts of the Arbitral Award dated 8 April 2020 (“Setting Aside OS”). GKL’s Setting Aside OS was heard on 20 and 25 October 2021, 13 January 2022, 16 and 17 February 2022, 4 April 2022, 10 August 2022 and 23 September 2022. As announced on 30 December 2022, the High Court dismissed GKL’s Originating Summons to set aside parts of the Arbitral Award on 29 December 2022 with costs. Setting Aside Appeal at the Court of Appeal GKL filed notices of appeal to the Court of Appeal on 19 January 2023. After several postponements, t he hearing proceeded on 20 and 21 August 2025. On 5 December 2025 the Court of Appeal allowed GKL’s appeals in part. In particular: (a) The Award is severed and varied to the extent that GKL is only liable to SSPC for the aggregate principal sum of USD200 million. (b) The amount of pre-Award and post-Award interest shall be premised on the total liability of USD200 million. (c) The High Court’s decision dated 29 December 2022 is varied to the extent set out in paragraph (a) above. (d) Costs for both appeals in the sum of RM150,000 to be paid by SSPC to GKL. (“CA Order”) Stay of Execution of the CA Order The Court of Appeal granted an ad interim stay of the CA Order pending the disposal of SSPC’s formal application for a stay of the CA Order (“ SSPC’s Stay Application”). SSPC’s Stay Application was heard on 27 July 2026. The Court of Appeal ordered a conditional stay of its order dated 5 December 2025, pending the final disposal of SSPC’s proceedings in the Federal Court. There is no material financial impact to MISC Berhad. Setting Aside Appeal – Leave to Appeal to the Federal Court On 29 December 2025, SSPC filed Notices of Motion for leave to appeal against part of the CA Order. On 5 January 2026, based on advice received that GKL has grounds to appeal, GKL filed Notices of Motion for leave to appeal against part of the CA Order. At the case management on 29 January 2026, both GKL and SSPC’s Notices of Motion for leave to appeal to the Federal Court were fixed for hearing on 25 May 2026. At a case management on 16 April 2026, the Federal Court rescheduled the hearing date to 28 July 2026 due to the Federal Court’s case load. On 28 July 2026, the Federal Court adjourned the hearing to enable parties to streamline their leave questions. A case management was held on 11 August 2026, where the hearing date was rescheduled to 19 November 2026.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 24 of 30 ii) Malaysia Offshore Mobile Production (Labuan) Ltd (“MOMPL”) and PCPP Operating Company Sdn Bhd (“PCPP”) Malaysia Offshore Mobile Production (Labuan) Ltd (“MOMPL”), MISC Berhad’s wholly owned subsidiary, and PCPP Operating Company Sdn Bhd (“PCPP”) are parties to an Agreement for the Leasing, Operation and Maintenance of Two (2) Plain Mobile Offshore Productio n Unit Facilities for D30 and Dana Fields Development Project dated 28 November 2008 (“the Contract”). PCPP is a joint operating company with shareholders comprising PETRONAS Carigali Sdn Bhd (40%) (“PCSB”), PT Pertamina Hulu Energi (30%) (“PPHE”) and PetroVietnam Exploration Production Corporation Ltd (30%) (“PVEP”). A dispute has arisen between the parties in relation to the Contract and there are substantial sums due and owing to MOMPL. Attempts to resolve the matter by means of a commercial settlement agreement failed to materialise and MOMPL was constrained to proceed with legal proceedings against PCPP to seek to recover the sums outstanding to MOMPL for the lease rates, payment for completed variation works, early termination fees, reimbursement of demobilisation costs and associated costs under the Contract total ling approximately USD99.8 million and service rates totalling approximately RM22.6 million. In this respect, the following actions have been filed: Adjudication 1. Adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) was first commenced to recover MOMPL’s claim for the completed variation works amounting to approximately USD9.9 million. On 9 January 2019, MOMPL was awarded its entire claim of USD9.9 million plus interest and costs. 2. The second adjudication proceedings under CIPAA was commenced to recover the disputed demobilisation costs amounting to approximately USD4.8 million. On 7 October 2019, MOMPL received the second Adjudication decision dated 26 July 2019 where MOMPL was awarded its entire claim of USD4.8 million plus interest and costs. 3. The Federal Court (“FC”) had on 16 October 2019 made a ruling that the CIPAA, which provides the basis upon which the Adjudication Proceedings were commenced, only applies prospectively to construction contracts entered into after the date CIPAA became eff ective i.e. 15 April 2014. The MOMPL lease agreement is dated 28 November 2008 and as such, falls outside the purview of CIPAA. 4. In view of the FC decision, MOMPL has stayed its hand on moving for the enforcement of the Adjudication decisions and will focus on the Arbitration Proceedings in order to recover the monies owing by PCPP. 5. As far as MOMPL is aware, there is no pending application to set aside the said Adjudication decisions. Arbitration 6. The first arbitration proceedings seek to claim for part of the outstanding sums amounting to approximately USD18.8 million and RM17.9 million. MOMPL’s Statement of Claim was filed on 21 December 2016. 7. MOMPL has re-filed the Notice of Arbitration for the second arbitration proceedings for part of the outstanding sums amounting to approximately USD81.0 million and RM4.7 million. PCPP has responded to the Notice of Arbitration on 15 July 2020. 8. The arbitral tribunal for both arbitration proceedings have now been constituted respectively, and parties are amid negotiating and finalising the terms of appointment. However, given the development in the filing of the Winding-up Proceedings, MOMPL has written to the arbitral tribunal for both the first and second arbitrations to request for proceedings to be kept in abeyance until the Winding-up Proceedings is disposed of by the High Court.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 25 of 30 Proceedings in Court Originating Summons against PCPP for Early Termination Fees and Demobilisation Costs 9. On 7 August 2018 an Originating Summons was filed in the High Court to recover the undisputed portion of the early termination fees and demobilisation costs amounting to approximately USD42.3 million. a. On 30 May 2019, the High Court, allowed PCPP’s application to stay the Originating Summons pending the disposal of the arbitration proceedings. MOMPL filed an appeal to the Court of Appeal (“CA”) against this decision which was heard on 12 April 2021. The CA set aside the stay application granted by the High Court and instead imposed a conditional stay on PCPP wherein PCPP is required to deposit a sum of USD7.8 million into a joint account held by both parties’ solicitors within 30 days, failing which MOMPL will be able to proceed with the full hearing in the High Court action against PCPP. PCPP failed to make any such deposit and therefore the Originating Summons was reinstated in the High Court at MOMPL’s request. b. The matter was heard on both 7 October 2021 and 26 October 2021, the High Court decided the matter in favour of MOMPL. MOMPL has now been awarded the full sum claimed amounting to USD42.3 million together with interest and costs which is to be paid by PCPP . PCPP did not file any appeal against the High Court’s decision however PCPP failed to pay the sum awarded to MOMPL. Due to PCPP’s failure to pay the sum awarded, MOMPL proceeded to issue a Statutory Notice pursuant to Sections 465 and 466 of the Companies Act 2016 against PCPP on 14 December 2021. Writ Action for Declaration against the Shareholders of PCPP 10. A writ action in the High Court was also filed on 13 August 2018 against PCSB, PPHE and PVEP (being the shareholders of PCPP) seeking for a declaration that the shareholders be liable for the amounts due and owing by PCPP to MOMPL under the Contract. PCSB and PCPP filed applications in the High Court to strike out (“PCSB’s Striking Out Application”) and stay the proceedings pending the disposal of the arbitration proceedings (“PCPP’s Stay Application”) which were allowed on 26 October 2018 and 11 December 2018 respectively. MOMPL appealed against both decisions to the Court of Appeal. a. MOMPL’s appeal against PCSB’s Striking Out Application by the High Court was dismissed by the Court of Appeal on 26 September 2019. MOMPL has filed leave to appeal against the Court of Appeal’s decision to uphold the High Court’s decision to strike out the proceedings against PCSB to the Federal Court. On 18 August 2020, the Federal Court dismissed MOMPL’s appeal. b. MOMPL’s appeal against PCPP’s Stay Application by the High Court was heard by the Court of Appeal on 19 June 2020. The Court of Appeal has set aside the stay against the shareholders , i.e. PCSB, PPHE and PVEP, whilst the stay against PCPP is affirmed. Pursuant to this decision, MOMPL has proceeded to serve the cause papers out of jurisdiction on PPHE and PVEP. PVEP failed to respond to MOMPL’s claim and therefore MOMPL applied for a su mmary judgment against PVEP. PPHE filed an application in the High Court of Malaysia to challenge the service of the cause papers in Indonesia which was heard on 11 August 2021. On 24 September 2021, the High Court allowed PPHE’s application. MOMPL has ele cted to await the outcome of the Winding - up Proceedings against PCPP and will consider whether to file a fresh claim against PCPP’s shareholders thereafter.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 26 of 30 Winding Up of PCPP 11. MOMPL issued a Statutory Notice pursuant to Sections 465 and 466 of the Companies Act 2016 against PCPP on 14 December 2021 (“Statutory Notice”). PCPP failed to comply with the Statutory Notice and therefore on 25 March 2022, MOMPL proceeded to file a wind ing-up petition against PCPP in the High Court (“Winding -up Petition”). The Winding-up Petition was heard on 6 September 2022 and a Winding -Up Order against PCPP was granted in the terms prayed for together with costs. This means that PCPP has been wound u p and a liquidator has been appointed. Proceedings Post Winding Up of PCPP 12. On 24 October 2022, MOMPL filed its Proof of Debt against PCPP together with the supporting documents to substantiate its entire claim. a. During the first creditor’s meeting which was held on 11 April 2023, MOMPL was informed by PCPP’s liquidator that it was PCPP’s only creditor and that the liquidator has admitted the full amount of MOMPL’s claim against PCPP amounting to USD121.9 million a s stated in the Proof of Debt. The liquidator has since requested a cash call from PCPP’s shareholders pursuant to the terms of the Joint Operating Agreement executed in respect of PCPP. PCSB responded to dispute the cash call. Following this, the liquidator requested for further information to support PCSB’s position. Since there was no response, the liquidator instructed their solicitors to file an application for directions in the Winding Up Court for the cash call to be effectively ordered against PCSB, PPHE and PVEP. b. On 15 August 2023 a Forms of Summons was filed by the liquidator to seek directions from the High Court for the cash call (“Application for Directions”). On 2 November 2023, the High Court allowed the liquidator’s application to serve the court papers out of the jurisdiction, to allow the liquidator to serve the cause papers on PPHE and PVEP in Vietnam and Indonesia. c. PCSB appointed solicitors and filed an application to intervene (for PCSB to be added as the party to the proceedings) and the Court allowed PCSB’s application to intervene as a party to the liquidator’s application on 8 January 2024. A further case management was fixed for 24 January 2024 for the Court to give directions on filing of affidavits, written submissions and to fix a hearing date for the liquidator’s Application for Directions. d. MOMPL also filed an application to intervene as a party to the liquidator’s Application for Directions to enable MOMPL to actively participate in the proceedings. MOMPL’s application to intervene was heard and allowed by the High Court on 23 January 2024. e. On 29 July 2024, the liquidator withdrew the Application for Directions, with no liberty to file afresh and with costs of RM5,000 to be paid to MOMPL. f. On 2 August 2024, MOMPL’s solicitors wrote to the liquidator to inquire what further active steps are being taken to explore recovery. On 6 August 2024, the liquidator responded to confirm that upon the advice of PCPP’s solicitors, the liquidator intends t o commence arbitration proceedings against the shareholders of PCPP. g. MOMPL’s solicitors continue to engage with the liquidator and explore avenues for recovery. (collectively referred to as the “Legal Proceedings”)
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 27 of 30 iii) Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”) and Haumea Offshore Sdn Bhd ("Haumea") On 15 April 2025 MMHE received a Notice of Arbitration dated 11 April 2025 (“the Arbitration”) from the solicitors for Haumea Offshore Sdn Bhd (formerly known as Trans Fame Offshore Sdn Bhd) ("Haumea") in relation to claims arising from Subcontract No. 3900007170 titled “Hook-up and Commissioning Works and Marine Vessels for Bokor Phase 3 Redevelopment Project (Package A)” (hereinafter referred to as “the Subcontract”). Under the Subcontract, Haumea was appointed by MMHE as the subcontractor to provide Hook -up and Commissioning (“HUC”) works, including marine vessels, for the Bokor Phase 3 Redevelopment Project (“the Works”). In the Notice of Arbitration, Haumea claims that there were disputes between Haumea and MMHE under the Subcontract in relation to Haumea’s performance of the Works. Haumea has included an indicative amount of its alleged loss as part of the Notice of Arbitration, at approximately RM57. 3 million, including interest, costs and/or other reliefs. On 13 May 2025, MMHE filed to the High Court an Originating Summons (“OS”) to seek a declaration that the Notice of Arbitration (“NOA”) is invalid, premature and wrong in law. MMHE also filed an injunction to restrain Haumea from registering the NOA with Asian International Arbitration Centre (“AIAC”). On 20 May 2025, the High Court of Johor Bahru granted an ex-parte injunction in favour of MMHE, restraining Haumea from registering the NOA , commencing or proceeding with arbitration in connection with the said NOA pending the determination by the High Court of its validity. Court has proceeded with the inter -parte hearing of the interim injunction application on 3 July 2025 and fixed the decision on 5 August 2025. On 5 August 2025, the High Court of Johor Bahru allowed Haumea’s application to set aside MMHE’s ex -parte injunction with cost s of RM10,000 and on 27 October 2025 allowed Haumea’s application to set aside MMHE’s OS with costs of RM10,000 subject to allocatur fees. MMHE had filed Notices of Appeal against both decisions. Haumea’s NOA was never submitted or registered to the AIAC. Hence, there is no formal arbitration proceeding at this point in time. Nevertheless, in the event MMHE’s appeal against the High Court’s decision is allowed by the Court of Appeal, the arbitral proceedings, if any, commenced under the NOA, would be rendered null and void. iv) MMHE and Solution Technologies Sdn Bhd ("ST") MMHE had on 4 June 2026 been served with a Writ and Statement of Claim, from the solicitors acting for ST . In its Writ and Statement of Claim, ST claims losses allegedly arising from the termination of a purported contract relating to the Transportation and Installation Works for part of the Provision of Engineering, Procurement, Construction & Installation of five (5) Wellhead Platforms, five (5) Subsea Pipelines and Host Tie -In Works for Joint Development Area Field Development Project (Phase 6) contract. The alleged losses claimed by ST include special damages amounting to RM54,006,793.00 for among others, project administration costs, payments to sub-vendors, project management team salaries, project engineering works as well as loss of profit, loss of opportunity, general damages and aggravated damages. The parties have completed the exchange of pleadings and are currently awaiting further directions from the Court. MMHE will continue to take all necessary and appropriate steps to defend against the claim and protect its interests in the proceedings.
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 28 of 30 B10. DIVIDENDS The Board of Directors has approved a second tax exempt dividend of 8.0 sen per share in respect of financial year 2026 amounting to RM357.1 million. The proposed dividend will be paid on 24 September 2026 to shareholders registered at the close of business on 15 September 2026. A depositor shall qualify for entitlement to the dividend only in respect of: i) Shares transferred into the Depositor' s Securities Account before 4.30 pm on 15 September 2026 in respect of Ordinary Transfers; and ii) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of Bursa Malaysia Securities Berhad. B11. TRADE AND OTHER RECEIVABLES, AND CONTRACT ASSETS The Group's normal trade credit terms with its customers range from 7 to 90 days. Credit terms are assessed and approved on a case-by-case basis and each customer is assigned a maximum credit limit. The ageing of trade receivables (excluding amount due from customers on contracts) as at the reporting date is as follows: 30 June 2026 31 December 2025 RM million RM million Trade receivables Third parties 3,634.0 3,445.8 Fellow subsidiaries 65.1 61.6 Associates and joint ventures 33.8 29.7 3,732.9 3,537.1 Contract assets 471.7 507.1 Other receivables 596.1 559.7 Less: Impairment (670.1) (605.9) Trade and other receivables 4,130.6 3,998.0 30 June 2026 31 December 2025 RM million RM million Current 936.4 867.5 Past due 1-30 days 168.9 142.0 Past due 31-60 days 144.9 51.8 Past due 61-90 days 45.9 23.5 Past due more than 90 days 2,436.8 2,452.3 3,732.9 3,537.1 Less: Impairment (609.7) (605.0) Trade receivables, net 3,123.2 2,932.1
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 29 of 30 B12. DERIVATIVES As part of the Group's efforts to hedge its interest rat e risks, the Group entered into interest rate swap ("IRS") arrangements, a form of derivative to convert its interest exposure from floating rate into fixed rate. The maturity of the IRS arrangements coincides with the maturity of the original floating rate loans. The Group had also entered into forward currency contracts to manage its foreign currency risk. Details of the Group's derivative financial instruments outstanding as at 30 June 2026 are as follows: The Group had entered into IRS arrangements to hedge against adverse movements in interest rates in compliance with the facility agreement as well as forward currency contracts designated as hedges of expected future payments denominated mainly in United States Dollars. There have been no significant changes for the financial derivatives in respect of the following since the last financial year ended 31 December 2025: (a) the credit risk, market risk and liquidity risk associated with these financial derivatives; (b) the cash requirements of the financial derivatives; and (c) the policy in place for mitigating or controlling the risks associated with these financial derivatives. B13. FAIR VALUE CHANGES OF FINANCIAL LIABILITIES The Group’s derivative financial instruments such as interest rate swaps and foreign currency contracts are measured at fair value. The fair value of the derivative financial instruments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business at the end of the reporting date. For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include: (a) using recent arm’s length market transactions; (b) reference to the current fair value of another instrument that is substantially the same; and (c) discounted cash flow analysis or other valuation models. Any gains or losses arising from changes in fair value on derivative financial instruments during the period that do not qualify for hedge accounting and the ineffective portion of an effective hedge are recognised in the income statement. Fair Value as at Contract/Tenure Notional Value 30 June 2026 RM million RM million Foreign currency contracts Within 1 year 99.3 (0.1) 99.3 (0.1) Interest rate swaps 1 year to 3 years 220.8 (0.2) More than 3 years 12,734.6 345.3 12,955.4 345.1
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MISC BERHAD (Registration No. 196801000580 (8178-H)) QUARTERLY REPORT FOR SECOND QUARTER ENDED 30 JUNE 2026 PART B – OTHER EXPLANATORY NOTES (continued) Page 30 of 30 During the financial period, the Group recorded the following gain from change in fair value of derivative financial instruments: Quarter Ended 30 June 2026 Cumulative 6 Months Ended 30 June 2026 Gain recognised in income statements RM million Gain recognised in other comprehensive income RM million Gain recognised in income statements RM million Gain recognised in other comprehensive income RM million Interest rate swaps - 166.1 - 182.3 Foreign currency contracts 0.0 1.2 0.0 1.0 B14. EARNINGS PER SHARE Quarter Ended Cumulative 6 Months Ended 30 June 30 June 2026 2025 2026 2025 Basic earnings per share are computed as follows: Profit for the period attributable to equity holders of the Corporation (RM million): 1,154.3 464.4 1,895.7 1,170.1 Weighted average number of ordinary shares outstanding (million) 4,463.7 4,463.7 4,463.7 4,463.7 Basic earnings per share (sen) 25.9 10.4 42.5 26.2 The Group does not have any financial instruments that may dilute its basic earnings per share. By Order of the Board