DESTINI Annual Report 2018

For the decommissioning segment, DOS managed to secure a two-year umbrella contract from PCSB for the provision of well abandonment integrated services for the Pulai-B oilfield in Peninsular Malaysia. This further increases the Group’s profile in the area of oilfield decommissioning and well abandonment. Financial Performance Destini recorded a revenue of RM418.04million as compared to RM683.35 million in 2017, representing a decrease of 38.82%. Profit after tax and non-controlling interest (“PATNCI”) was at RM 1.77 million, representing a decrease of 94% from RM28.85 million reported in the year before. The Group’s marine business remained as the Groups main revenue driver with a 59% contribution. This was followed by aviation at 20% and oil and gas at 11%. Destini’s land systems contributed 10% to the Group’s revenue. The details of the Group’s financial performance is discussed in this reports Management Discussion and Analysis from page 40 to 49. Moving forward Destini remains cautiously optimistic on the operational and financial growth of the Group. During the year, there were several strategies that were laid out that will continuously be implemented in the years to come to ensure that Destini maintains a sustainable growth path. Oil prices, new policies, global economic and political stability remain as important catalysts for Destini to sustain its growth. While the Group remains optimistic that oil prices have stabilised and policies are still in check, Destini will remain vigilant with its spending and cautious in managing its four core business segments. Destini’s orderbook grew by 44.31% year-on-year is a testament to its capabilities and track record. This was made possible through its strategic initiative to increase contributions from its commercial businesses. To further enhance shareholders value, the Group is focused on optimizing operational efficiency and risk mitigation. CHAIRMAN’S STATEMENT Destini remains cautiously optimistic on the operational and financial growth of the Group. Share Performance Destini’s share price performance was relatively encouraging during the first quarter of 2018. The Group saw its share price highest at 64 sen in February 2018. However, due to policy uncertainties during the year, Destini’s share price was unable to hold through and slid 80% to 14 sen in December 2018. The Group saw a slight rebound in its shares when it closed at 23 sen during the last trading day of 2018, closing with a market cap of RM363 million at the end of the year. Destini’s net assets per share rose slightly to 44.09 sen in FY2018 as compared to 44 sen reported in the previous year. Basic earnings per share however dipped to 0.15 sen from 2.60 sen in financial year ended December 31, 2017 (“FY2017”). DESTINI BERHAD ANNUAL REPORT 2018 38