ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 18 Energy Services Division The Energy Services Division is primarily an “essential service” and thus has been allowed to operate even during the MCO. As such, the Energy Services Division recorded its highest level of revenue since its commencement in FYE 2016. The downstream specialty chemicals distribution business continues to see orders and deliveries for its products and services as its customers – refineries, petrochemicals plants, and gas producers/suppliers – need to continue operating. It has also been business as usual for our floating storage and offloading solutions business in Myanmar as the Yetagun field was operational during the pandemic. Having said that, we intend to continue pursuing the significant growth that this division has successfully demonstrated over the years. We are also cognisant of our customers’ expectations and requirements and will continue providing the support that they need. We will maintain agility in refining our business strategy as and when needed, and expand our product and service offerings in order to remain relevant to our clients in and outside of Malaysia. Property Development Division Like many other businesses around the world, our planned real estate projects had to be delayed during the height of the pandemic in Malaysia and the UK in early of 2020. Economic activities have since picked up by the time of writing and we have resumed operations in full force. The key to riding on this recovery phase is building the right product for the right market. In Malaysia, this division is planning to develop several landed housing projects located in urban areas around the Klang Valley that will be priced at affordable levels. We are confident that there is still demand for our products that are geared towards quality yet affordable living. The soft launches of our projects earlier this year have already generated inquiries from prospective buyers even throughout the MCO period. Unfortunately, due to the MCO, we had to re-organise the timing of the official launches and start of project construction. Moving forward, we envisage a higher cost of construction as we intend to comply with health and safety practices and requirements in light of the pandemic. In the UK, we will be focused on the development of a lifestyle retirement home development in Rugby, UK which is in the final stages of planning enhancement and approval. We hope to launch the project by late 2020. We believe that the demand for such niche product catering to the ageing population remains strong as supply has not been able to meet demand. Our development will be equipped with modern features to meet prospective buyers’ present- day requirements. This niche product, we believe, would be even more relevant under the current environment as prospective buyers in our target market seek out opportunities to have standby health, safety and basic medical support as part of the development. If the launch of this project is a success, we may capitalise on our experience and consider pursuing further niche opportunities of a similar nature in both the UK and Malaysia. CONCLUSION We are proud of what we have achieved today after several years of building the Group and are pleased to have ended the financial year on a high note despite the challenging operating environment. Our Energy Services Division in particular has demonstrated satisfactory growth over the same period which we hope to sustain. FYE 2020 was indeed full of important lessons that will continue to be our guiding points in the years to come. The Group paid an interim single tier dividend of 1.25 sen per share to shareholders on 29 May 2020 for FYE 2020. The Board’s consideration to reward shareholders with dividends will continue to be guided by the Group’s operational needs and investment opportunities. MANAGEMENT DISCUSSION AND ANALYSIS