$4\mathrm{.}4\mathrm{.}4$ Operations

The Group achieved a significant increase in total revenue, reaching RM$136$ million during FY$2023,$ marking an impressive increase from the RM$84$ million recorded in FY$2022.$ This substantial revenue growth of approximately $62\%$ underscores the Group$$s resilient performance and strategic initiatives during FY$2023.$ This growth mainly from the ongoing works from clients during the current financial year.

FY$2023$ saw an increase in the contribution from the pipeline and commissioning services division significantly to the Group$$s revenue and building on higher work done delivered in FY$2023.$ The division$$s revenue surged to RM$130$ million, a noteworthy increase from the RM$78$ million recorded in FY$2022,$ highlighting its continued expansion and efficiency in the Group$$s overall operations.

$4\mathrm{.}4\mathrm{.}5$ Pipeline and Commissioning Services $($PCS$)$

FY$2023$ revenue for PCS increased to RM$130$ million compared to RM$78$ million in FY$2022$ due to an increase in work orders received for Pan Malaysia Maintenance Construction and Modification $($PM$-$MCM$)$ projects from clients during the current financial year. These contracts cover services for four oilfield operations managed by the respective clients, encompassing a wide range of repair and maintenance work for their offshore platforms. This remarkable expansion underscores the recovery and momentum gained in FY$2023.$

The main resources required for these contracts were manpower, equipment, supply of materials, fabrication, testing and commissioning including assistance of offshore support vessel when required.

$4\mathrm{.}4\mathrm{.}6$ Chartering Services $($CS$)$

For FY$2023,$ revenue from CS amounted to RM$3$ million, reflecting a decrease compared to the RM$6$ million generated in FY$2022.$ This decline is due to a reduction in charter period for the vessel supply, including Accommodation Work Boats and Anchor Handling Tug $($AHT$)$ Boats for underwater service works.

$4\mathrm{.}5$ OUTLOOK $2024.$

In $2024,$ Malaysia$$s economic outlook presents a promising picture with sustained growth across various sectors$.$ The Government$$s initiatives in the continuation of strategic projects, digitalisation, improved productivity and advanced manufacturing will further stimulate the growth of the economy in the medium term. The strategic geographic location of the nation may continue to attract foreign investments, which will contribute significantly to its economic growth.

The oil and gas industry in $2024$ is expected to maintain stability and experience growth, particularly in the domestic oil and gas production sector. A strong emphasis on natural gas continues, and the industry is actively exploring opportunities for expansion in international markets. This strategic approach exemplifies the industry$$s commitment to ensuring a strong and dynamic future.

Despite Malaysia$$s overall positive outlook in $2024,$ the oil and gas industry faces distinct challenges. Regulatory pressures, investor expectations, and society$$s focus on sustainability are prompting oil and gas companies to reduce their carbon footprint. The Group is committed to allign with Government sustainability efforts, emphasising Environmental, Social, and Governance $($ESG$)$ considerations across its operations.

The Group is dedicated to strengthen its engagement with stakeholders and contribute positively to ESG initiatives. It plans to further leverage on its capabilities and assets in non$-$oil and gas sectors like renewable energy and power generation. By collaborating with local and international partners, the Group aims to reduce its reliance on the challenging oil and gas sector, increase its competitiveness in bidding, and enhance project delivery capabilities in the domestic and regional landscape.

While pursuing these initiatives, the Group will continue to explore opportunities and execute projects in the oil and gas, renewable energy, water and other industries. Its extensive experience as an oil and gas support service provider demonstrates its technical expertise and ability to deliver high$-$quality services which has been recognised locally and abroad.

$4\mathrm{.}6$ IMMEDIATE ACTION PLAN

Despite the challenges in FY$2023$ and with the positive outlook for FY$2024,$ it is paramount for the Group to address the balance sheet and sustainability plan moving forward. Immediate initiatives to be implemented that require immediate actions are as follows:

a$.$ Regularisation of its financial conditions including injection of new projects and assets to uplift the Group from the PN$17$ status.

b$.$ Aggressive marketing of the pipelay barge Kota Laksamana $101$ and seek a potential buyer for the barge.

c$.$ Continue focusing on efficiency and performance including cost rationalisation in executing the existing contracts to sustain operations and cashflow.

d$.$ Active submission of bids and tenders to secure new projects sin PLEASE SUGGEST SLIDE POWERPOINT FOR THIS PART