40 SECTION 04 : CORPORATE GOVERNANCE Risk Type Risk Description Potential Financial Impact Management / Response Measures Energy Logistics - Revenue and Market Transition Risk Over the longer term, decarbonisation trends, changing customer investment priorities and evolving energy policies may affect offshore activity levels and demand for certain oil and gas-related marine logistics and offshore support services. As the Energy Logistics segment remains the Group’s primary revenue contributor, prolonged changes in offshore market conditions may affect the utilisation and long-term economic viability of marine assets. • Reduced charter demand or asset utilisation • Pressure on margins and earnings • Potential impacts on asset values, recoverability and long-term deployment assumptions • Monitoring developments in offshore energy markets, customer requirements and marine regulatory developments • Maintaining operational flexibility and evaluating deployment opportunities for key marine assets • Strengthening technical and offshore infrastructure support capabilities beyond vessel chartering activities Group-wide - Carbon Pricing and Input Cost Risk Carbon pricing mechanisms, fuel cost increases, environmental regulations and rising material and energy costs may increase operating and project costs across the Group’s business segments. Malaysia has also signalled the introduction of a carbon tax targeting selected sectors, including iron, steel and energyrelated industries. • Higher fuel, electricity and operating costs • Increased construction, maintenance and project costs • Margin pressure across operations and projects • Monitoring developments relating to carbon pricing, fuel subsidies and energy costs • Incorporating cost considerations into budgeting, pricing and tender evaluation processes • Monitoring supplier and contractor cost movements during project and procurement planning activities Energy Logistics / MRO Services - Regulatory and Customer Alignment Risk Evolving environmental standards, marine regulations and customer sustainability expectations may affect technical specifications, tender requirements, operational practices and compliance obligations relating to offshore and marine-related activities. • Additional compliance and operating costs • Potential impacts on competitiveness or tender eligibility • Increased maintenance, upgrade and inspection requirements • Monitoring regulatory developments, customer requirements and applicable marine compliance standards • Maintaining technical, operational and class compliance requirements, where applicable Energy Logistics / MRO Services - ClimateRelated Opportunity Increasing focus on asset integrity, operational reliability, refurbishment and lifecycle extension may increase demand for maintenance, engineering and lifecycle support services across marine and offshore infrastructure. Climaterelated operating conditions and ageing infrastructure may also contribute to higher maintenance and refurbishment requirements over time. • Potential increase in demand for maintenance, refurbishment and lifecycle support services • Additional engineering and offshore infrastructure support opportunities • Potential expansion of technical capabilities and service offerings over time • Strengthening engineering, refurbishment and technical support capabilities relating to marine and offshore infrastructure • Leveraging technical capabilities in installation, commissioning, maintenance, repair, overhaul and lifecycle support activities Sustainability Statement (Cont’d)
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