DESTINI Annual Report 2018

Manufacturing • Destini’s marine manufacturing business segment saw a PATNCI of RM11.7 million on the back of RM200.6 million in revenue in FY2018. During the previous year, PATNCI was 25.8 million on the back of revenue of RM337.3 million. • The lower earnings was due to the fact that the RM381.3 million contract for the supply of six NGPCs to the MMEA was at the tail-end of its tenure. • In 2017, THHE Destini Sdn Bhd, a 49:51 joint venture company between THHE and Destini’s wholly-owned subsidiary DSBE, secured a RM738.9 million contract to build three Offshore Patrol Vessels for the MMEA. The vessels are currently built at THHE’s yard in Pulau Indah, Port Klang. Barring any unforeseen circumstances, the first vessel is expected for delivery in 2021. The OPV contract is expected to contribute positively to the Group in 2019. • On commercial marine manufacturing, Destini’s wholly- owned subsidiary Vanguarde Pte Ltd has built 60 lifeboats on 2018, an increase from 13 lifeboats from the year before. The increase in demand came mainly from the recovery in the oil & gas industry. MARINE Services • The Group’s marine services improved by reporting a PATNCI of RM1.8 million in FY2018 as compared to a LATNCI of RM2.3 million the year before. This was on the back of an increase in revenue of RM46.3 million from RM22.3 million in FY2017. • Destini has invested in enhancing its facilities with new machinery to expand its existing ship repair services. By doing so, the Group expects its ship repair services to improve in 2019. • Destini’s wholly-owned subsidiary TF Corp returned to profitability due to the increase in MRO of lifeboats as a result of the recovery in the oil and gas industry. • As part of the Group’s long-term strategy for its marine services, TF Corp intends to venture into fleet management for shipping companies. • In addition, TF Corp is also gearing to expand its network of service stations to include China, North Africa and Europe, which will enhance the Group’s marine service chain as a whole. • The company has also formed strategic alliances with reputed suppliers of LSA products to support its expansion plan. DESTINI BERHAD ANNUAL REPORT 2018 45