PERFORMANCE BY BUSINESS DIVISION Technology The turnaround of SilTerra has been our biggest success story in FY2022. Acquiring it as a non-profitable business, we surpassed all expectations to achieve the best output, revenue and profitability in the company’s history in just 11 months, with a steady growth in quarteron-quarter revenue boding well for the future. While we benefitted from an increase in average selling prices, our achievements were primarily driven by our transformation strategy, which focused on driving operational efficiencies, productivity improvements, business and product strategy alignment as well as capital expenditure to increase our manufacturing capacity. In addition to our financial turnaround, we are also now fully utilising our output capabilities, with three Long Term Agreements (“LTAs”) with major customers fulfilling close to 70 per cent of capacity and other global customers making up the remaining 30 per cent. The LTAs contributed positively to the company’s cash flow in FY2022, as we received a combined total deposit of USD110 million upon commencement. In tandem with our expansion strategy, we are on track to increase our capacity by a further 10 per cent in order to allocate space for the manufacturing of emerging technologies such as Silicon Photonics and microelectromechanical systems (“MEMS”), which command higher prices and better profit margins. The development and testing of Silicon Photonics and MEMS with our global customers is progressing well and we are on track to complete development and commence production in 2023. Energy While we suffered from some forex losses for assets denominated in pound sterling, our Energy Division performed steadily for much of FY2022 with a constant growth in revenue in each quarter. A rise in Brent crude oil prices in the second half of FY2022 helped to alleviate the impact of a riser malfunction in first quarter FY2022 and a 30-day scheduled shut down from 15 June to 15 July 2022. During the year, we successfully purchased the remaining 50 per cent interest in the Avalon oil field to bring our ownership to 100 per cent and provide us with greater control and flexibility on development concepts moving forward. With our proposed development concept for the Avalon’s discovery in the Central North Sea receiving a letter of ‘No Objection’ from the North Sea Transition Authority. Ping is moving forward with finalising conceptual development planning and beginning front-end engineering works as we prepare to submit the Avalon Field Development Plan. A Final Investment Decision is anticipated in late 2022, and we are confident of beginning production at Ping Petroleum’s second oil field asset by mid-2025 at an initial rate of 20,000 barrels per day. The total estimated lifetime recovery at Avalon is 24 million barrels. REVENUE RM857.67 MILLION EBITDA RM277.04 MILLION REVENUE RM399.89 MILLION EBITDA RM207.06 MILLION DAGANG NeXCHANGE BERHAD 66 GROUP CHIEF FINANCIAL OFFICER'S REVIEW
RkJQdWJsaXNoZXIy NDgzMzc=