DESTINI Annual Report 2018

Destini operates in four major industries, namely aviation, marine, oil & gas and land systems. Each of these industries have different operational landscapes and challenges. However, a common denominator that had an effect on the Group was a slowdown in public expenditure from the Government’s continuous caution over fiscal policies amid a background of high public debt as well as volatile crude oil and commodity prices. Nonetheless, current public policies remain accommodative while crude oil prices have seen improvements that allowed oil and gas majors to increase their capital expenditure that were previously curtailed by the oil price crash in 2014. Recognising this, Destini has put in place strategies to capitalise on these circumstances in order to optimise returns for investors and stakeholders. Despite the headwinds, Destini has a secured orderbook of RM1.34 billion (as at March 31, 2019) that will sustain the Group for the next three years. The highest contributor to this figure comes from the Group’s oil and gas business segment which gained confidence from improved oil prices. Destini’s wholly-owned subsidiary DOS was awarded a two- year umbrella contract by PCSB which saw the company receiving a work order for the provision of well abandonment integrated services worth RM20.2 million for the Pulai B oil field, off the coast of Terengganu. The company was also awarded a contract for the provision of tubular handling, conductor installation and slot recovery equipment and services for the Pan Malaysia Petroleum Arrangement Contractors Operators Drilling Programme by PCSB. Work orders from this contract is expected to commence in 2019. Destini has a secured orderbook of RM1.34 billion (as at March 31, 2019) that will sustain the Group for the next three years. In addition, DOS has also managed to make inroads internationally by securing contracts worth a combined RM52.93 million in Pakistan and Myanmar. Contracts from Pakistan-based Lyallpur Oil Tool Pvt Ltd and POSCO Daewoo Corporation in Myanmar has reaffirmed DOS credentials as a major service provider in the TRS segment. Destini’s aviation business segment also saw progress when its wholly-owned subsidiary, DPSB accepted an award from the Malaysian Ministry of Defence for an additional RM138 million to provide MRO services and the supply of safety and survival equipment for the RMAF. This contract was first awarded to Destini in 2013 and renewed in 2016 with an increased contract ceiling. The additional allocation above signifies the long-standing trust from the Government towards Destini in the provision of MRO services to the RMAF. DESTINI BERHAD ANNUAL REPORT 2018 41