Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 16 CHAIRMAN’S MESSAGE (CONT’D) TTES Frontken Integrated Services – Our business in this unit continued to do exceptionally well compared to the year before as we saw reduced disruptions to the supply chain as oil prices stabilise. Despite sales price pressures from customers and stiff competition, the continuous tweaking of TTES business strategies and selective investments throughout 2023 yielded their best ever performance in recent times. Other than improved activities in Kemaman, we also saw increased orders flowing in at our facility in Pengerang, Johor. The facility was completed in 2022 to support the Petronas Refinery and Petrochemical Integrated Development (RAPID) and Pengerang Integrated Complex. Our long-term plan will be to continue to maximise our new assets, enhance strategic local and foreign collaboration partnership that supplement our in-house capabilities, broaden our scope of services and products, participate in more work categories and enhanced engineering works. Human resource management and retainment will be crucial for us to expand our capabilities and in becoming a leading O&G service provider. We continue to aspire to be the most sought after, reliable and efficient one-stop service centre for O&G companies, covering all aspects of customers’ maintenance needs, EPCC and turnaround supports. We will continue with our business plan to expand joint tendering with selective partners to capture long-term integrated service contracts and expand our market base further. Frontken Singapore (Engineering) – In 2023, we continued to achieve an improved financial performance as a result of better market condition. The continual engagement to tap into the non-traditional type of industries, new projects from non-traditional service offering and upturn in the O&G sector also helped our cause. Despite facing competitive pricing pressure, lack of suitable skilled candidates and increased cost, we were able to overcome these hurdles by managing our resources wisely and cross training our skilled employees to enhance production efficiency. During the year, we saw increased activities for thermal spray processes from our existing customers and parts fabrication project for solar panel manufacturers. Activities for rotating equipment such as compressors and blowers as well as static component from petrochemical complexes in Jurong Island are expected to increase with upcoming planned shutdowns. We believe revenue for this portion of our business will continue to contribute positively to the Group’s performance. Moving forward, we will continue to seek opportunities to tap into new markets such as consumer products’ manufacturers with continual emphasis on O&G and petrochemical industries. Frontken Philippines – The Group’s operation in the Philippines achieved a revenue of RM15.1 million, an increase of 9% compared to the year before attributable to additional projects from the power industry. The uptick in revenue coupled with ongoing savings initiatives contributed to an operating profit of RM2.1 million, an increase of 7% year on year. Major Overhauling of Generator
RkJQdWJsaXNoZXIy NDgzMzc=