16 SECTION 03 : LEADERSHIP FINANCIAL POSITION OVERVIEW ENRA ends the financial year with a positive balance sheet: • Net assets have decreased from RM72.3 million as at 31 March 2024 to RM40.0 million as at 31 March 2025; • Gearing has increased to 2.47 times in FYE 2025 compared to 0.47 times in FYE 2024; and • Cash and cash equivalents have decreased from RM5.3 million in FYE 2024 to RM4.4 million in FYE 2025. FUTURE PROSPECTS Energy Logistics The Energy Logistics division continues to contribute to the Group’s overall revenue, anchored by key assets including the oil/chemical tanker Hexagon Alpha (formerly Ratu ENRA) and a SPM system. The division is supported by a dedicated and technically proficient team that is actively pursuing and bidding for new FSO and SPM opportunities. The Energy Logistics division is aligned with ongoing developments in the industry. Oil demand remains resilient, supported by ongoing refinery operations and the development of new and marginal oil fields. Although global supply has gradually increased, inventories remain relatively tight, contributing to price stability. Meanwhile, geopolitical tensions, particularly in the Middle East region, have led to longer shipping routes and elevated risk premiums. This has resulted in higher ton-mile demand and a tighter supply of marine assets, supporting firmer charter rates. At the same time, the global energy transition continues to face technical and financial hurdles, ensuring the continued relevance of oil and gas in the near to medium term. Taken together, these conditions are shaping market dynamics in marine logistics, especially with regard to vessel utilisation and deployment. Given these market conditions, we believe the outlook for this division remains stable, with the team actively exploring opportunities to pursue specialised FSO and SPM solutions to capture emerging demand. Property Development The Malaysian property market is set for measured recovery in 2025, driven by stronger residential sales, especially in the affordable housing space. Unsold residential inventory is declining, and government measures such as stamp duty waivers, housing loan guarantees, and incentives for foreign investors (e.g., MM2H enhancements) are improving buyer sentiment and reactivating stalled projects. While household debt levels and interest rate pressures remain concerns, the combination of policy support, improving demand, and growth in specialised real estate segments presents attractive opportunities, particularly for investors targeting affordable housing. The Group’s development project in Rugby, UK continues to face challenges stemming from volatile exchange rates, elevated interest rates, and ongoing supply chain and logistical disruptions. Management remains committed to closely monitoring market conditions and will decide on the most favourable outcome to realise value from the asset. Following a careful assessment of the property sector outlook, Management will maintain its strategic focus on opportunities primarily within Malaysia. While the affordable housing segment continues to offer the largest market potential, the Group remains open to exploring broader opportunities across various segments of the property market. Management Discussion and Analysis (Cont’d)
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