DESTINI AR 2017

In aviation, the Group seized the opportunity to expand its services from servicing aircrafts to the supply of six reconnaissance helicopters worth RM321.90 million to the Ministry of Defence for the Royal Malaysian Army’s Air Wing. With the supply of the helicopters, Destini has the opportunity to expand its MRO services beyond its current scope of mainly safety and survival systems of the aircraft. The wider option to cater for the needs of aircraft and helicopter servicing, is expected to enhance the Group’s recurring income stream as aircraft and helicopter maintenance are needed by the RMAF to keep its assets in mission readiness at all times. To achieve this, Destini and Sapura Aero Sdn Bhd incorporated a joint venture company that provides MRO services for defence and commercial aircraft and helicopters. The company was also established to explore the supply and provision of rotary wing and fixed aircraft sale, wet and dry leasing to government and private agencies in this region. Destini has been able to strengthen its portfolio in the shipbuilding and continue our success story by securing a contract worth RM738.90 million to build three Offshore Patrol Vessels (OPV) for the Malaysian Maritime Enforcement Agency (MMEA) through a joint venture with TH Heavy Engineering Berhad. Destini also acquired a 70% stake in AMS Marine Pte Ltd. to complement the Group’s existing oil and gas and marine businesses. This acquisition will not only expand our marine services but also develop in-house capabilities in fabrication and piping. In the Land Systems sector, Destini received an order to supply a dozen heavy vehicles for National Disaster Management Agency (NADMA) worth RM9.20 million. This adds on to the Group’s deliveries in past years to more than 300 defence and security vehicles for various Government agencies. The positive momentum in the economy has supported many industries despite headwinds from operating environments. The oil and gas industry however remained lacklustre during the year with the volatility in oil prices. However, towards the end of the year, oil prices slowly gained after OPEC and non-OPEC members agreed to oil production cuts. With this positive aptitude, the oil and gas industry gained confidence which opened doors to new possibilities. Coinciding with this encouraging industry turn, Destini formed a joint venture with Federal International (2000) Ltd, a company listed on the Mainboard of the Singapore Exchange. The joint venture company will collectively bid for exploration, development and production related services for oil and gas fields in the South Asia and South-East Asia regions. 39 DESTINI BERHAD Annual Report 2017