SAPURA ENERGY BERHAD - ir.chartnexus.com

1 SAPURA ENERGY BERHAD ANNUAL REPORT 201801AT A GLANCE05 SUSTAINABILITY REPORTOur Vision02 Facts at a Glance04 Global Footprint06 Health, Safety andEnvironment085-Year Group Financial Summary10 Chairman s Statement12 Introduction54 President and Group Chief Executive Oicer s Message56 Sustainable Operations59 Nurturing Talent and Developing Communities62 Health, Safety andEnvironment72 Corporate Information16 Group Organisational Structure17 Financial Calendar18 Calendar of Events80 Board of Directors20 Proile of Board of Directors22 Executive Committee32 Proile of Excecutive Committee34 Corporate Governance Overview Statement85 Statement on Risk Management and Internal Control99 Report of Board Audit Committee101 Additional Compliance Information105 Statement of Directors Responsibility106 President and Group Chief Executive Oicer s Statement40 Strategic Review and Outlook42 Segmental Results442018 Strategy at a Glance49 Key Risks to the Group51 Commitment to Sustainability52 Commitment to People5302 CORPORATEOVERVIEW06 EVENTS03 LEADERSHIP07

2 CORPORATEGOVERNANCE04 MANAGEMENT DISCUSSION AND ANALYSIS08 FINANCIALSTATEMENTS09 ADDITIONAL INFORMATIONTABLE OFCONTENTSF inancial Statements107 Analysis of Shareholdings237 Notice of AnnualGeneral Meeting241 Statement Accompanying Notice of Annual General Meeting243 Proxy FormThe People ofSAPURA ENERGY BERHADOUR VISIONOur Vision is to be the best entrepreneurially- led, technically competent and most trusted global oil and gas company in the eyes of our customers, shareholders and most importantly, our empowered people. We will be guided by our honesty, trust and respect for all. We will achieve our business objectives by being safe, agile and professional to continuously strive to meet all of our stakeholders ENERGYBERHAD(950894-T)7thDAYWEDNESDAYDAT E18 JULY BALLROOM 1 & 2 LEVEL 3 (EAST WING) KUALA LUMPUR CONVENTION CENTREKUALA LUMPUR CITY CENTRE50088 KUALA LUMPURANNUALGENERALMEETINGCAPITALISING ON RESILIENCEThis year s theme represents the journey SAPURA ENERGY BERHAD has taken to ensure that we are strategically positioned and ready to capitalise on emerging opportunities as gradual optimism returns in the industry.

3 We have leveraged on the resilience of our people and the capabilities of the Group to develop a stronger foundation for recovery. The montage on the cover is a dedication to our people for their commitment throughout this AT AGLANCEEXPLORATIONDEVELOPMENTOUR VALUECHAIN0405 2 Major Fabrication Yards 1 Minor Fabrication Yard 6 Derrick Lay Vessels 6 Pipelay Vessels 1 Subsea Construction Vessel 42 Remotely Operated Vehicles 3 Survey Vessels 3 Diving/Support Vessels 2 Anchor Handling Tug Supply Vessels 1 Floatover Launch Barge 6 Accommodation Workboats/BargesDRILLINGEXPLORATION AND PRODUCTION Previously referred to as our ENERGY Segment Participating Interest in 8 Production Sharing Contracts ENGINEERING AND

4 CONSTRUCTIONPRODUCTIONREJUVENATIONDECOMM ISSIONING& ABANDONMENT 8 Tender Barge Rigs 7 Semi-Submersible Tender Rigs0506 This global footprint is based on the United Nations issued map. The designations employed and the presentations of the material on this map do not imply the expression of any opinion whatsoever on the part of SAPURA ENERGY BERHAD or its subsidiaries ( the Group ) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Every efort is made to ensure this map is free of errors but there is no warranty that the map or its features are either spatially or temporally accurate or it for a particular use.

5 This map is provided without any warranty of any kind whatsoever, either expressed or LOCATIONSHOOK-UP &COMMISSIONINGTHE GROUP S GLO AL FOOTPRINT07 Southeast Asia This global footprint is based on the United Nations issued map. The designations employed and the presentations of the material on this map do not imply the expression of any opinion whatsoever on the part of SAPURA ENERGY BERHAD or its subsidiaries ( the Group ) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Every efort is made to ensure this map is free of errors but there is no warranty that the map or its features are either spatially or temporally accurate or it for a particular use.

6 This map is provided without any warranty of any kind whatsoever, either expressed or PIPELINES &FACILITIESGEOTECHNICAL/GEOPHYSICALSURVE YMARINE IVING & ROV SERVICES(Remotely Operated Vehicles)OPERATIONS &MAINTENANCE RILLINGFA RICATIONE PLORATION &PRO UCTIONENGINEERING AT A GLANCE0801 HEALTH, SAFETYAND ENVIRONMENTHigh standards in Health, Safety and Environment ( HSE ) remain a central governing part of our operations at SAPURA ENERGY BERHAD ( SAPURA ENERGY ) and its subsidiaries ( the Group ). We remain deeply committed to our Company s vision of being safe, agile and professional, which includes responsibly managing risks within all aspects of our operations.

7 We execute our work with integrity, honesty and in partnership with all stakeholders; focusing on the health and safety of our employees and the protection of the environment in which we are to be expected in our industry. The Group has in place a robust and comprehensive risk management system to identify, prevent, mitigate and manage such potential risks. Our HSE culture is essentially the way we do business and this is irmly embedded at every level throughout our in the Group is responsible for upholding our HSE policies. Every employee and contractor is empowered and has a duty to stop unsafe work when substandard behaviours or conditions are extensive experience in the oil and gas sector, as well as our collaboration with industry and government stakeholders, led to the sharing and adoption of HSE best practices.

8 We monitor HSE developments and new initiatives across the industry through these collaborations and sharing, in addition to our own experience, drives a commitment to continuous improvement in all areas of our ENERGY BERHAD ANNUAL REPORT 201809 ISO9001:2015 ISO9001:2008 ISO14001:2015 ISO14001:2004 OHSAS18001:2007 SAPURA Australia Pty Ltd SapuraKencana Mexicana, de Total Marine Technology Pty Ltd SAPURA Fabrication Sdn Bhd SAPURA Subsea Services Sdn Bhd SAPURA Ofshore Sdn Bhd SAPURA GeoSciences Sdn Bhd (formerly known as SapuraKencana GeoSciences Sdn Bhd) SAPURA Pinewell Sdn Bhd SapuraKencana Mexicana, de Total Marine Technology Pty Ltd SAPURA Ofshore Sdn Bhd SAPURA Subsea Services Sdn Bhd SAPURA Fabrication Sdn Bhd SAPURA Australia Pty Ltd SAPURA Ofshore Sdn Bhd SAPURA Subsea Services Sdn Bhd SAPURA Fabrication Sdn Bhd Total Marine Technology Pty Ltd SAPURA Pinewell Sdn Bhd SAPURA Australia Pty Ltd SapuraKencana Mexicana, de are honoured to have been accorded with the following awards and milestone recognitions by our clients for our various HSE achievements.

9 RecipientAchievementAwarding EntitySapura Technology Solutions Sdn Bhd500,000 man-hours without LTI for SK305 Abandonment ProjectPCPP Operating Company Sdn BhdTotal Marine Technology Pty LtdPlatinum IFAP/CGU Safe Way AwardIndustrial Foundation for Accident Prevention (IFAP) AustraliaSapuraKencana Mexicana, de 76 Project - Zero LTIPEMEX Exploraci n y Producci n de (PEMEX) SAPURA Fabrication Sdn Bhd2017 Chairman s Safety AwardExxonMobil Exploration and Production Malaysia IncSapura Ofshore Sdn Bhd2017 Chairman s Safety AwardExxonMobil Exploration and Production Malaysia IncSapura Drilling DivisionT-9 - Gold Class 1 Malaysian Society for Occupational Health and Safety (MSOSH)Esperanza - Gold Class 1 Malaysian Society for Occupational Health and Safety (MSOSH)

10 Esperanza - 365 Goal Zero DaysSarawak Shell BERHAD /Sabah Shell Petroleum Company LimitedEsperanza - 2017 Recognition for Outstanding PerformanceSarawak Shell BERHAD /Sabah Shell Petroleum Company LimitedT-9 - Best Performing Rig Malaysia 2017 Petronas Carigali Sdn Bhd2017 Rig Contractor, Best Drilling HSE PerformancePetroliam Nasional BerhadISO Certiications:AT A GLANCE105-YEAR GROUPFINANCIAL SUMMARY01 Financial year ended 31 January 2014 RM mil 2015 RM mil 2016 RM mil 2017 RM mil 2018 RM milOperating resultsRevenue 8,3799,94310,1847,6515,895 Proit/(loss) before tax and impairments1,2081,6711,317668(191)Proit/ (loss) before tax1,2081,616(713)385(2,324)Proit/(loss) after tax1,1241,433(791)206(2,505)