44 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 ii. FSO facilities Our FSO facilities business is currently deploying its assets - Ratu ENRA and a SPM system for a nine-month contract which will tentatively end in July 2023. Ratu ENRA will subsequently be deployed for a bareboat charter business as the company has secured a five + five years contract (optional with mutual agreement) with a company based in United Arab Emirates. Given the current elevated oil prices and prevailing geopolitical environment, the logistics of oil, gas and related cargo for storage or transport purposes is anticipated to be in high demand, which bodes well for this contract. iii. MRO services MRO services serve a wide range of end users such as the oil & gas, marine, agriculture, industrial and other relevant and applicable industries. Currently, our Group provides MRO services to oil & gas customers to, amongst others, maintain and preserve diesel engines and generators (including their ancillary equipment). The company has aggressively embarked on marketing initiatives focusing on the MRO of diesel engines and its relevant equipment in both government and commercial sectors. In preparation of the upcoming tenders, the company has taken strides in recruiting skilled, qualified technicians and investing in its first service centre in Ipoh. As part of expansion to serve the customers better, the company has also embarked on exploring strategic partnerships in Terengganu and Labuan. To ensure sustainable supply chain management and to address obsolescence issues commonly occurring among aged capital assets, the company has established a wide network of globally independent companies to supply parts and furnish technical support. iv. Property Division In the face of an uncertain external environment, the property market, domestically and abroad, is likely to continue facing headwinds in the coming year. Our Malaysian property efforts are not spared from the prevailing market challenges. Taman Iram Perdana, our fully-sold first project, is set to hand over keys to its new owners in Q1 FY 2023/24, marking a milestone for our Affordable Homes business. However, having experienced a significant increase in building costs and observing the impact of the recent overnight policy rate (OPR) increase on our buyers, we are reevaluating the product design, pricing and marketing strategy for the other projects we have in the pipeline. Similar challenges have also impacted the project in Rugby, UK and the team has been working on refining the sales strategy and project feasibility. Considering the property outlook and the current market conditions, our primary focus is on successfully selling all of our products in a timely manner. Sustainability Report (Cont’d)
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