DESTINI Annual Report 2019

03 PERFORMANCE • The Group saw its oil and gas revenue grew to RM74.26 million in FYE2019 from RM47.41 million the year before. This segment returned to black after reporting PATNCI of RM1.73 million from a LATNCI of RM1.07 million in FYE2018. • Destini’s oil and gas business saw a commendable year with the awards of five major contracts in Malaysia and across the region. All five contracts are mainly for long- term tubular handling services for oil majors operating in Malaysia, Thailand and Myanmar. All of the contracts are on a call out basis which depends on each oil fields requirements. • In addition, the Group had successfully completed the decommissioning of the Pulai-B platform off the coast of Terengganu ahead of schedule. This plug and abandonment campaign was awarded for excellent performance on the first successful completion of plug and abandonment and zero injurious incidents by PCSB. • The year 2020 looks to be a promising year for Destini’s oil and gas segment. Although uncertainties are looming, there will still be a demand in oil and gas and the opportunities is of abundance. The Group is looking at finding a strategic partner to expand its oil and gas foot print to other Asia Pacific countries such as Indonesia, Brunei, Philippines and Thailand. • Locally, there are still opportunities for the Group to grab a hold off. For instance, 45% of 3,000 wells in Malaysia have been considered as non-producing and over 200 wells are ready to be decommissioned over the next 5 years. With a successful track record in decommissioning, Destini is poise to bid for these opportunities when it is made available. OIL AND GAS MANAGEMENT DISCUSSION AND ANALYSIS DESTINI BERHAD 044