ENERGY PERFORMANCE ■ Destini’s energy division, which houses the Group’s oil and gas as well as renewable energy (“RE”) businesses, saw its revenue increase to RM40.69 million consistent with other segment in FPE 2024 compared to RM38.91 million in the corresponding quarter. The increase in revenue is attributed to higher rig activity. ■ The energy sector recognised a higher LATNCI of RM23.85 million compared to a profit of RM3.33 million in the corresponding quarter. This loss was primarily due to impairment of receivables and investments amounting to RM24.18 Million. ■ There has been a surge in recovery in the Oil and Gas industries, driven by global demand and geopolitical developments, which saw oil prices rise to highs of above US$100 per barrel. As such, capital spending by oil majors increased and is expected to remain steady in the medium to long term. ■ In line with the needs of energy transition, Destini has ventured into areas related to RE, which led the Group to pursue solar photovoltaic (“PV”) systems since FY2021. ■ This venture paved the way for Destini to gain a foothold in the industry with the acceptance of a Conditional Letter of Award from Indah Water Konsortium Sdn Bhd (“IWK”) for the engineering, procurement, construction and commissioning of solar PV systems at IWK’s sewerage plants across the country. ■ Destini expects its award from IWK to bear fruit in FY2025, with the commencement in August 2023 of the construction of solar PV systems in the Northern Region consisting of 110 sites. The remaining two regions of Central and South/East are estimated to commence in November 2024 and September 2025, with completion estimated in October 2025 and January 2026, respectively. ■ Additionally, Destini has secured additional sites from the award of IWK PHASE 3, consisting of 14 sites with a capacity of 0.5 MW, further expanding our footprint in the renewable energy sector. ■ Aside from solar projects, Destini is also constantly looking for opportunities to pursue in the RE sector, such as hydro power plants and LNG supply, demonstrating our commitment to diversifying our energy portfolio. 31 DESTINI BERHAD ANNUAL REPORT 2024
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