DESTINI AR 2017

RM359.62 mil 2017 RM22.76 mil 2017 Manufacturing • PATNCI was recorded at RM25.72 million against a turnover of RM337.35 million in FY2017. In the previous year, the Group saw a PATNCI of RM24.34 million on a turnover of RM172.87 million. • As at 31 December 2017, Destini has delivered three out of six New Generation Patrol Vessels to the MMEA. • Adding to this, the Group plans to utilise its existing shipyard to become more proactive in local ship repair jobs to provide more recurring income from this business. • With a specialty in fabricating patrol vessels for coastal security, the Group intends to expand its reach to international shores with its existing capabilities. • Destini’s commercial marine manufacturing is suffering from the effects of the downturn from both the oil and gas and shipping industries. • Destini has developed new products, the Self-Propelled Hyperbaric Lifeboat and new sizes of totally enclosed lifeboats, which meets new customer requirements in a low price environment. Services • Marine services reported LATNCI of RM2.96 million in FY2017 from a PATNCI of RM1.56 million a year before. Revenue stood at RM22.27 million from RM21.82 million in financial year ended December 31, 2016 (FY2016). • This business segment continues its lacklustre streak from a lower demand in services which is due to the downturn in the oil and gas as well as shipping industries. • However, with oil prices seen improving towards the end of the year, this business segment is expected to perform better in the coming year with new orders of lifeboats and its associated services. • In its geographical expansion, Destini has opened three more marine service stations in Dubai, Abu Dhabi and Dammam. These were necessary to complete Techno Fibre’s network of service stations covering fromMalaysia, Singapore, Australia, Middle East and Europe. Aside to that we are also looking to penetrate the American market, Houston in particular, to complete our marine services global network. This will enable Destini to offer fleet management services to shipowners, ship managers and related parties. DESTINI BERHAD MARINE by President and Group Chief Executive Officer Management Discussion and Analysis 42 PATNCI REVENUE