DESTINI Annual Report 2018

OIL AND GAS • The Group’s oil and gas business segment narrowed its losses in FY2018 with a LATNCI of RM1.1 million from a LATNCI of RM15 million the year before. Revenue stood stronger at RM47.4 million from RM24.3 million in FY2017. • Destini’s oil and gas business segment saw positive momentum in 2018 as oil prices started to recover which was evident in DOS clinching four contracts. • DOS secured a major contract from PCSB to be its primary TRS contractor for the PAC Operators’ Drilling Programme in East Malaysia. This 3+2 year contract is expected to contribute positively to the company’s earnings. • In addition, DOS also secured another TRS contract from Shell under the same PAC Operators’ Drilling Programme. • DOS expanded its regional footprint by securing two TRS contracts in Myanmar and Pakistan, respectively. • On the decommissioning segment, DOS was awarded an umbrella contract by PCSB for the provision of well abandonment integrated services and was followed by the award of its first work order shortly after. • The numerous contract awards have fortified DOS’s position as the only Malaysian Tubular Running Services company in the region and the only Malaysian company that has successfully completed a decommisioning project for Petronas in the last five years. • Decommissioning is expected to be a major contributor to the company in the coming years as oil majors begin to embark on their well abandonment and decommissioning programmes. Petroliam Nasional Bhd’s (“PETRONAS”) in its “Activity Outlook Report 2019-2021” has guided a bullish decommissioning programme for the next three years while a report by Wood Mackenzie estimates up to USD100 billion worth of decommissioning jobs in the Asia-Pacific region in the coming decade. DESTINI BERHAD ANNUAL REPORT 2018 47