DESTINI Annual Report 2018

The local economy has remained sustainable throughout the year, underpinned by robust growth from high domestic demand. The Malaysian Ringgit saw a mixed performance in 2018, mainly from external factors such as the Federal Reserve interest hike speculation, crude oil prices movement, the strengthening of the US Dollar and the fear of escalating trade war between the US and China. Domestically, Bank Negara Malaysia has taken prudent measures such as increasing the Overnight Policy Rate (“OPR”) to keep the local currency in check. Corporate Developments The year 2018 witnessed several positive corporate developments for the Group even though the global economy was in a state of volatility. Destini continued to strengthen its position in providing its MRO services for its four core businesses. Sustaining its presence in the defence aviation business, Destini continues to provide MRO services and the supply of safety and survival equipment to the RMAF with an extension of its existing contract and an increase in the contract ceiling. With oil prices recovering in 2018, oil majors have regained confidence to increase their activities in the upstream segment. DOS was awarded a three- year contract for the provision of tubular handling services (“TRS”), conductor installation and slot recovery equipment and services for the Pan Malaysia PAC Operators Drilling Program by Petronas Carigali Sdn Bhd (“PCSB”). This was followed by an award by Shell under the same PAC Operators Drilling Program. Regionally, DOS managed to expand its oil and gas presence to Pakistan by becoming a TRS technical partner for Pakistan-based Lyallpur Oil Tool Pvt Ltd. In addition, DOS was also awarded a contract for TRS from POSCO Daewoo Corporation in Myanmar. These contract wins reinforces Destini‘s position as a global TRS provider and an increasingly positive outlook for the oil and gas industry. DESTINI BERHAD ANNUAL REPORT 2018 37