KEYFIELD INTERNATIONAL BERHAD Registration No. 202001038989 (1395310-M) ANNUAL REPORT 2024 CHARTING STEADY COURSE FOR DYNAMIC GROWTH
Keyfield at a Glance 02 Keyfield’s Fleet at a Glance 03 History and Key Milestones 06 Corporate Structure 08 Corporate Information 09 5-year Key Financial Highlights 10 Captured Moments: Our Commitment in Action 12 Key Events, Awards and Achievements 13 Chairperson’s Message 16 Group CEO’s Message 19 Management Discussion and Analysis 25 Sustainability Statement FY2024 37 Board of Directors 80 Key Senior Management 87 Corporate Governance Overview Statement 94 Audit and Risk Management Committee Report 109 Statement on Risk Management and Internal Control 113 Statement of Directors’ Responsibility for Preparation of Financial Statements 118 Audited Financial Statements 119 Additional Compliance Information 194 List of Properties 197 Analysis of Shareholdings 198 Notice of Annual General Meeting 201 Proxy Form - This report is available at https://keyfieldoffshore.com/reports/ To access our Annual Report, please scan the QR code with a QR code reader application on your smartphone. WHAT’S INSIDE THIS REPORT
02 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) Our Vision To be the leading provider of offshore accommodation vessels in Malaysia and internationally, recognised for our integrity, professionalism and commitment to excellence. We strive to deliver quality offshore accommodation and catering services for offshore personnel. Our Mission To support the industry by upholding our commitments to our customers, providing a comprehensive range of quality accommodation vessels and services while adhering to the industry’s standards for health, safety, and environmental responsibility. With our experienced team, we work hand in hand to overcome challenges together and consistently deliver the best service to our valued customers. Our Core Values Principal Activity Ownership and chartering of own and third-party accommodation vessels, and provision of related onboard services such as accommodation, catering, housekeeping, laundry and medical support services. KEYFIELD AT A GLANCE OUR FLEET We currently own 14 Malaysian-flagged accommodation vessels, as follows: • Three (3) 4-point mooring Accommodation Work Boats (“AWB”); • Six (6) Dynamic Positioning 2 (“DP2”) AWBs; • One (1) 8-point mooring Accommodation Work Barge; • Two (2) DP1 Anchor Handling Tug Supply Vessels (“AHTS”); • One (1) DP2 Geotechnical Platform Supply Vessel (“PSV”); and • One (1) DP2 PSV. We also charter other third-party vessels on spot and bareboat basis. PANEL CONTRACTOR CONTRACT (“PCC”) HOLDER A panel contractor under the PCC for Offshore Support Vessel ("OSV") services for Petroleum Arrangement Contractors ("PACs") for the SWEC Codes 21121510S, 21121511S and 21121518S. OUR LICENCES AND CERTIFICATIONS Holder of the following: i) Vessel Owner-Operator licence from PETRONAS with the following SWEC codes: SWEC Description 21121510S AWB/Accommodation Barge 21121511S Anchor Handling Tug (“AHT”)/ AHTS/Tow Tug Boat 21121518S PSV 21121519S Safety Standby (“SSV”)/ General Purpose/Utility Vessel ii) Document of Compliance (“DoC”) issued by Surveyor General of Ships, Malaysia iii) ISO Certifications RESPECT Self-respect and respect for team members, customers, business associates and competitors R INTEGRITY To be mindful and build trust, moral and support between management, executives, stakeholders, suppliers and clients I CONTENTMENT Practise gratitude and extend a helping hand to those in need C HUMANITY To practise kindness, be caring, graceful, generous, and considerate unconditionally H 9001:2015 14001:2015 45001:2018
03 ANNUAL REPORT 2024 ACCOMMODATION WORK BOATS M.V. KEYFIELD GRACE DP2 Accommodation Work Boat General Specifications Length : 78M Engine Size : 2 x 3,000 BHP Capacity : 150 pax Deck Space : Approximately 850m² Main Crane : 64T @ 13M M.V. KEYFIELD FALCON DP2 Hybrid Accommodation Work Boat General Specifications Length : 80M Engine Size : 2 x 3,180 BHP, Hybrid System Capacity : 200 pax Deck Space : Approximately 820m² Main Crane : 70T @ 13M KEYFIELD’S FLEET AT A GLANCE M.V. KEYFIELD LESTARI Accommodation Work Boat General Specifications Length : 70.5M Engine Size : 2 x 2,000 BHP Capacity : 180 pax Deck Space : Approximately 550m² Main Crane : 40T @ 10M M.V. LAGUNA SETIA 1 Accommodation Work Boat General Specifications Length : 78M Engine Size : 2 x 2,733 BHP Capacity : 208 pax Deck Space : Approximately 700m² Main Crane : 50T @ 15M M.V. LAGUNA SETIA 2 Accommodation Work Boat General Specifications Length : 78M Engine Size : 2 x 2,733 BHP Capacity : 208 pax Deck Space : Approximately 700m² Main Crane : 50T @ 15M
04 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) M.V. KEYFIELD AMANAH DP2 Accommodation Work Boat General Specifications Length : 75M Engine Size : 2 x 2,575 BHP Capacity : 198 pax Deck Space : Approximately 600m² Main Crane : 40T @ 12M M.V. KEYFIELD ITQAN DP2 Accommodation Work Boat General Specifications Length : 75.8M Engine Size : 2 x 2,575 BHP Capacity : 194 pax Deck Space : Approximately 600m² Main Crane : 40T @ 12M KEYFIELD’S FLEET AT A GLANCE (cont’d) ACCOMMODATION WORK BARGE KEYFIELD WISDOM Accommodation Work Barge General Specifications Length : 123M Generator Size : 4 x 1,080 eKW Capacity : 500 pax Deck Space : Approximately 2,220m² Main Crane : 300T @ 16M ACCOMMODATION WORK BOATS M.V. KEYFIELD COMPASSION DP2 Accommodation Work Boat General Specifications Length : 85M Engine Size : 2 x 3,000 BHP Capacity : 192 pax Deck Space : Approximately 800m² Main Crane : 80T @ 25M M.V. KEYFIELD COMMANDER DP2 Accommodation Work Boat General Specifications Length : 75M Engine Size : 2 x 2,960 BHP Capacity : 200 pax Deck Space : Approximately 482m² Main Crane : 30T @ 16M
05 ANNUAL REPORT 2024 KEYFIELD’S FLEET AT A GLANCE (cont’d) M.V. KEYFIELD AULIA DP1 Anchor Handling Tug Supply General Specifications Length : 60.5M Engine Size : 2 x 2,575 BHP Capacity : 42 pax Deck Space : Approximately 370m² M.V. KEYFIELD HELMS 1 DP2 Geotechnical Platform Supply Vessel General Specifications Length : 76M Engine Size : 2 x 2,500 BHP Capacity : 48 pax Deck Space : Approximately 700m² M.V. KEYFIELD KINDNESS DP1 Anchor Handling Tug Supply General Specifications Length : 60M Engine Size : 2 x 2,544 BHP Capacity : 50 pax Deck Space : Approximately 392m² M.V. KEYFIELD GRATITUDE DP2 Platform Supply Vessel General Specifications Length : 78.5M Engine Size : 2 x 3,260 BHP Capacity : 59 pax Deck Space : Approximately 750m² ANCHOR HANDLING TUG SUPPLY VESSELS PLATFORM SUPPLY VESSELS
06 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) HISTORY AND KEY MILESTONES Notes: 1. Panel contractor under PCSB’s “Umbrella Contract for Offshore Support Vessel Services for PCSB and Petroleum Arrangement Contractors’ (“PACs”) Drilling and Project Activities” for a period of 3 years plus a unilateral extension of 2 years by PCSB. 2. 3 additional SWEC codes: (i) 21121518S (PSV); (ii) 21121519S (Safety Standby/General Purpose/Utility Vessel) both in November 2022; and (iii) 21121511S (Anchor Handling Tug (AHT)/AHTS/Tow Tug Boat) in December 2022. 3. Panel contractor under PCSB’s Panel Contractor Contract (“PCC”) for Offshore Support Vessel (“OSV”) services for Petroleum Arrangement Contractors (“PACs”) for a period of 3 years plus a unilateral extension of 3 years by PCSB. LESTARI HELMS 1 WISDOM COMMANDER COMPASSION GRACE Incorporation of Keyfield Offshore Sdn Bhd In April 2016, secured our first chartering contract In March 2017, took delivery of our first own vessel and commenced first charter in April 2017 Completed acquisitions of 3 vessels in February 2022 and obtained 3 additional SWEC codes(2) Took delivery of Lestari in March 2023, then Helms 1 and Wisdom in April 2023 2013 2016 2017 2022 2023 LS1
07 ANNUAL REPORT 2024 LS2 FALCON AULIA GRATITUDE ITQAN AMANAH KINDNESS In June 2018, Keyfield Offshore applied to PETRONAS and subsequently obtained the Vessel Owner-Operator license with the SWEC code 21121510S In April 2019, Petronas Carigali Sdn Bhd ("PCSB") awarded Keyfield Offshore a Letter of Award For Umbrella Contract to be a panel contractor(1) • In September 2020, took delivery of our second own vessel • Incorporation of Keyfield International Berhad in November 2020 Took delivery of Falcon in February 2021 and Kindness in November 2021 • Took delivery of Amanah in January 2024, Itqan in July 2024 and Aulia in August 2024 • Listed on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Securities") in April 2024 • Entered into a Shipbuilding Contract to construct a newbuild DP2 AWB • Appointed as panel contractor for the PCC for OSV services for PACs(3) in April 2024 Took delivery of Gratitude in January 2025 2018 2019 2020 2021 2024 2025 HISTORY AND KEY MILESTONES (cont’d)
08 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CORPORATE STRUCTURE KEYFIELD INTERNATIONAL BERHAD Registration No. 202001038989 (1395310-M) KEYFIELD OFFSHORE SDN BHD 100% NAKA BAYU SDN BHD 49% KEYFIELD MARINE SDN BHD 100% KEYFIELD ENDEAVOUR SDN BHD 90% KEYFIELD RESOLUTE SDN BHD 100% KEYFIELD SERENITY SDN BHD 100% KEYFIELD SHIP SERVICES SDN BHD (Formerly known as Keyfield Geomarine Sdn Bhd) 51% KEYFIELD VENTURES (LABUAN) LIMITED 100%
09 ANNUAL REPORT 2024 CORPORATE INFORMATION REGISTERED OFFICE Level 5, Guoco Tower, 6 Jalan Damanlela, Damansara City, Bukit Damansara, 50490 Kuala Lumpur, Malaysia Tel: 03-7890 2833 Email: mysecretaryteam@incorp.asia HEAD OFFICE B-31-02, Tower B, Pavilion Embassy No 200, Jalan Ampang, 50450 Kuala Lumpur, Malaysia Tel: 03-7972 9118 Email: ir@keyfieldoffshore.com BRANCH OFFICE Lot 1891, 2nd Floor, Jalan Marina Square 2, Marina Parkcity, 98000 Miri, Sarawak, Malaysia SHARE REGISTRAR Tricor Investor & Issuing House Services Sdn Bhd Unit 32-01, Level 32, Tower A Vertical Business Suite, Avenue 3 Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia Tel: 03-2783 9299 Email: is.enquiry@vistra.com PRINCIPAL BANKERS Malayan Banking Berhad CIMB Islamic Bank Berhad COMPANY SECRETARY Ng Cheong Seng SSM PC No.:202408000584 (MIA 17444) AUDITOR Crowe Malaysia PLT (Registration No. 201906000005 & LLP0018817-LCA (AF 1018)) Level 16, Tower C, Megan Avenue II 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia Tel: 03-2788 9999 STOCK EXCHANGE LISTING Main Market Bursa Malaysia Securities Berhad Listed on 22 April 2024 Stock Code : 5321 Stock Name : KEYFIELD Board of Directors HAIDA SHENNY BINTI HAZRI Independent Non-Executive Chairperson DATO’ KEE CHIT HUEI Executive Director / Group CEO MOHD ERWAN BIN AHMAD Executive Director / Group COO JULANNAR BINTI ABD KADIR Independent Non-Executive Director LIM CHEE HWA Independent Non-Executive Director CHIA CHEE HOONG Independent Non-Executive Director
10 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) 5-YEAR KEY FINANCIAL HIGHLIGHTS Financial Years Ended 31 December 2020 RM’000 2021 RM’000 2022 RM’000 2023 RM’000 2024 RM’000 Revenue 75,231 139,756 236,204 430,451 687,152 Profit After Tax (“PAT”) 13,516 18,007 49,851 107,115 227,783 Profit after tax and minority interests (“PATAMI”) 13,516 17,621 48,877 105,475 226,942 Earnings before interest, taxes, depreciation and amortisation (“EBITDA”) 22,976 39,495 91,713 197,355 360,319 Total Assets 219,937 337,589 503,857 691,198 1,137,592 Total Equity 123,732 144,682 192,337 294,392 714,945 Total cash and cash equivalents 20,176 14,656 17,024 68,540 321,590 Basic Earnings per Share (“EPS”) (sen) 2.7 3.5 9.8 21.1 31.8 Net Assets (“NA”) per Share (RM) 0.49 0.29 0.38 0.59 0.89 - 200,000 400,000 600,000 800,000 2020 REVENUE (RM’000) 2021 2022 75,231 139,756 236,204 430,451 687,152 2023 2024 - 50,000 100,000 200,000 150,000 250,000 2020 PATAMI (RM’000) 2021 2022 13,516 17,621 48,877 105,475 226,942 2023 2024 - 10.0 5.0 15.0 25.0 20.0 35.0 30.0 2020 Basic EPS (sen) 2021 2022 2.7 3.5 9.8 21.1 31.8 2023 2024 - 400,000 200,000 600,000 800,000 1,200,000 1,000,000 2020 Total Assets (RM’000) 2021 2022 219,937 337,589 503,857 691,198 1,137,592 2023 2024 - 200,000 600,000 400,000 800,000 2020 Total Equity (RM’000) 2021 2022 123,732 144,682 192,337 294,392 714,945 2023 2024 - 0.40 0.20 0.60 1.00 0.80 2020 Net Assets per Share (RM) 2021 2022 0.49 0.29 0.38 0.59 0.89 2023 2024
11 ANNUAL REPORT 2024 5-YEAR KEY FINANCIAL HIGHLIGHTS (cont’d) As at 31 December 2024, we are pleased to highlight our financial ratios as follows: - Net Gearing Ratio 0 (Net Cash) Return on Equity 45.4% Dividend Yield 5.0% (Based on share price as at 31 December 2024) Return on Asset 24.9% Dividend Payout Ratio 38.9% Return on Fixed Assets 40.5% Current Ratio 4.0x Net Asset Per Share RM0.89 FYE 2024 KEY FINANCIAL RATIOS
12 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CAPTURED MOMENTS: OUR COMMITMENT IN ACTION
13 ANNUAL REPORT 2024 KEY EVENTS, AWARDS AND ACHIEVEMENTS JAN MAR 2024 Obtained renewal of our Vessel OwnerOperator licence from PETRONAS. Signed underwriting agreement with M&A Securities Sdn Bhd for public portion of IPO (“Initial Public Offering”) shares. Signed agreement to acquire Keyfield Amanah at RM34.8 million. Took delivery on 31 January 2024. Announced balloting results for public portion of IPO shares, which were 9.69 times oversubscribed. Appointed as PETRONAS’ panel contractor for Offshore Support Vessel services. Received similar appointment from PETRONAS Carigali Sdn Bhd and other petroleum arrangement contractors. Made our listing debut on Bursa Securities’ Main Market. Best maiden day performance in 6 years for Main Market, with 114.4% premium at closing. Implemented our Employee Share Option Scheme in conjunction with our IPO. Launched our IPO Prospectus en route to Bursa Securities’ Main Market. 5 5 26 26 APR 5 9 22 22
14 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) KEY EVENTS, AWARDS AND ACHIEVEMENTS (cont’d) MAY JUN 2024 Participated in our first Bursa Marketplace Fair 2024 at Kota Kinabalu, Sabah. Received the Gold Award at the 2024 Malaysia Deepwater Production Corporation HSSE Forum. Handed over Keyfield Helms 1 to our charterer, Helms Geomarine Sdn Bhd, to commence a new 3+2 year charter. Signed agreement to acquire Keyfield Aulia at USD7.8 million. Took delivery on 13 August 2024. Established Keyfield’s up to RM1.0 billion Sukuk Wakalah programme, which had been assigned with AA3 long-term rating with stable outlook by RAM Rating Services Berhad. Held investor townhall event for the above Sukuk Wakalah programme. Signed agreement to acquire Keyfield Itqan at USD6.0 million. Took delivery on 3 July 2024. Signed agreement for shipbuilding of new DP2 accommodation workboat at USD30.5 million, with expected delivery in 2026. 11 20 12 25 25 JUL AUG OCT NOV 11 6 23 6
15 ANNUAL REPORT 2024 KEY EVENTS, AWARDS AND ACHIEVEMENTS (cont’d) NOV DEC JAN 2024 2025 Signed agreement to acquire Keyfield Gratitude at USD17.6 million. Took delivery on 15 January 2025. Participated in our second Bursa Marketplace Fair 2024 at Kuching, Sarawak Issued our maiden Sukuk Wakalah with RM200.0 million nominal value. Received prestigious Blueprint Award by RAM Rating Services Berhad for Keyfield’s Sukuk Wakalah programme. Signed agreement to dispose Lestari for a cash consideration of USD12.5 million. Expected delivery by June 2025. Signed agreement to acquire Keyfield Blessing at USD20.55 million and entered into agreement to immediately charter it out. Successfully completed pilot Solar photovoltaic (“PV”) system onboard Keyfield Wisdom. Entered into Malaysian Book of Records for having most solar panels with battery pack onboard an offshore vessel. 6 9 26 10 21 FEB MAR APR 25 27 15
16 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CHAIRPERSON’S MESSAGE DEAR ESTEEMED SHAREHOLDERS, On behalf of Keyfield International Berhad’s (“Keyfield” or the “Group”) Board of Directors, it is with immense pride that I present Keyfield’s inaugural Annual Report and Audited Financial Statements for the financial year ended 31 December 2024 (“FYE 2024”). OUR PERFORMANCE On 22 April 2024, Keyfield made an impressive debut on the Main Market of Bursa Securities with a closing price of RM1.93, a 114.4% premium over our IPO price of RM0.90. Our successful listing is a strong testament of the shareholders’ and market’s confidence in us, and we are proud that Keyfield was named best-performing Main Market IPO stock on its maiden day of trading since 2019. For FYE 2024, I am pleased to share that the Group reported a revenue of RM687.2 million with profit after tax and minority interests of RM226.9 million, surpassing our financial performance last year by 59.6% and 115.2% respectively. The increase was mainly driven by the higher number of chartered days for both own and third-party vessels (arising from higher utilisation rates and increased number of own vessels) as well as an increase in average Daily Charter Rates (“DCR”). Keyfield’s own vessels recorded a utilisation rate of 80.4% in FYE 2024, an increase from 78.8% utilisation rate which was recorded in the financial year ended 31 December 2023 (“FYE 2023”). We also experienced higher average DCR in 2024, which was attributable to the continued strong demand and tight supply conditions in the markets we operate in, especially for vessels which are equipped with DP2 capability. Basic EPS rose to 31.79 sen from 21.05 sen and return on shareholders’ equity for FYE 2024 was 45.4%. The Group also maintained a strong balance sheet, with total assets of RM1.1 billion and cash and cash equivalents of RM321.6 million. “ ”
17 ANNUAL REPORT 2024 CHAIRPERSON’S MESSAGE (cont’d) REWARDING OUR SHAREHOLDERS We extend our deep gratitude to our shareholders for their support during our listing debut and throughout the past year. For FYE 2024, the Group declared a total dividend of 11.0 sen per ordinary share, amounting to RM88.3 million in total dividends. This represents a 38.9% payout ratio over our profit after tax attributable to owners of the Company or PATAMI, nearly double of the Group’s 20.0% target dividend payout ratio, underscoring our commitment to delivering shareholder value while maintaining robust financial health. CORPORATE GOVERNANCE The Board is fully committed to upholding the highest standards of corporate governance, transparency, and accountability as set out in the Malaysian Code on Corporate Governance (“MCCG”). As a newly listed company, we are cognisant of the trust placed in us by our shareholders and the investing public, and we remain steadfast in honouring that trust. Our Board maintains full compliance with MCCG requirements, with female Directors representing 33.3% of our Board composition, demonstrating our commitment to gender diversity. We are pleased to report that Independent Non-Executive Directors currently comprise 66.7% of our Board, exceeding the minimum MCCG requirement of 50%. This composition is designed to enhance transparency and objectivity in Board decisions, with Independent Directors playing a crucial role in providing unbiased perspectives. Details on our corporate governance are further described in Keyfield’s Corporate Governance Overview Statement of this Annual Report as well as Corporate Governance Report. SUSTAINABILITY We are also proud to present our inaugural Sustainability Statement, which is incorporated in this Annual Report, marking a significant step in our environmental, social and governance (“ESG”) journey. We developed a robust ESG Strategy anchored on 3 core sustainability pillars, supported by our newly established Sustainability Policy and Governance Structure to ensure accountability and alignment with longterm goals. We embraced 8 United Nations Sustainable Development Goals (“UN SDGs”) to align with global objectives and conducted a materiality assessment to identify and prioritise key sustainability issues. At the core, we look into the monitoring of Scope 1, 2, and 3 greenhouse gas emissions to comprehensively assess our carbon footprint and aim to monitor this data to identify trends and drive continuous improvement in our emissions management efforts. Keyfield's commitment to sustainable practices is further exemplified by the installation of a solar hybrid system with an integrated battery energy storage system onboard our largest vessel, Keyfield Wisdom. This initiative reduces the vessel’s reliance on generator sets, lowering fuel consumption and carbon emissions, and has earned Keyfield Wisdom a place in the Malaysia Book of Records for hosting the most solar panels with battery storage on an offshore vessel.
18 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CHAIRPERSON’S MESSAGE (cont’d) SUSTAINABILITY (CONT’D) We take great pride in our fully Malaysian workforce, which brings together talented professionals from our nation's diverse ethnic and cultural backgrounds. Over the years, we have grown substantially from a modest team to over 70 shore-based employees today plus more than 400 offshore crew members, demonstrating our commitment to developing local talent and creating rewarding career opportunities. The Group fosters a diverse, fair and inclusive work culture that promotes creativity, problem solving, and adaptability by bringing together varied perspectives. We believe embracing diversity unlocks our team's collective potential, resulting in higher employee engagement, improved performance, and greater workplace fulfilment. Further details are in the enclosed Sustainability Statement of this Annual Report. ACKNOWLEDGEMENTS On behalf of the Board, I would like to express my sincere appreciation to you, our esteemed shareholders, as well as our business associates, customers, suppliers, regulators, and financial institutions for your continued support. A heartfelt “Thank You” to the Management and staff of Keyfield for your commitment, hard work, and dedication, which have been instrumental in our achievements over the past year. I would also like to extend my gratitude to my fellow Board members for your invaluable contributions and insights throughout the past year. Together, let us set our sails higher as we continue on this journey to drive sustainable growth and deliver long-term value to all stakeholders. Haida Shenny Binti Hazri Independent Non-Executive Chairperson
19 ANNUAL REPORT 2024 GROUP CEO’S MESSAGE DEAR ESTEEMED SHAREHOLDERS, I’m honoured to present to you Keyfield International Berhad’s (“Keyfield”, and collectively with our subsidiaries, or “Keyfield Group or “our Group”) inaugural annual report for the financial year ended 31 December 2024 (“FYE 2024”). 2024 was a landmark year for Keyfield, defined by growth, resilience and many notable achievements. In 2024, we achieved record operational and financial performance, solidifying our position as the market leader in the Malaysian AWB sector. KEY ACHIEVEMENTS IN FYE 2024 In April 2024, Keyfield Offshore, our main operating subsidiary, was awarded the Panel Contractor Contract (“PCC”) for Offshore Support Vessel (“OSV”) services for Petroleum Arrangement Contractors (“PACs”), particularly for Accommodation Work Boats, Anchor Handling Tug Supply vessels and Platform Supply Vessels. The PCC, which spans an initial period of 3 years with an option to extend for a further 3 years, positions Keyfield favourably to continue serving PETRONAS, PETRONAS Carigali Sdn Bhd, and PACs effectively. In the same month, Keyfield made its trading debut on the Main Market of Bursa Securities on 22 April 2024, achieving a remarkable opening price of RM1.70, an 88.9% premium over its IPO price of RM0.90 before rising further and closing at RM1.93. The impressive gain earned us a recognition as the best maiden day trading performance for Main Market IPO stock in the last 6 years. We are grateful for the support and confidence from our investors, which has driven the share price to a commendable level. Our successful listing has paved the way for a new chapter of growth, unlocking a wealth of opportunities to further expand and strengthen Keyfield’s position in the market. We completed the first issuance under our RM1.0 billion Sukuk Wakalah programme, successfully raising gross proceeds of RM200.0 million, with the proceeds being earmarked for further fleet expansion. Pursuant to this, we are honoured to be awarded the prestigious RAM Blueprint Award for our landmark RM1.0 billion Sukuk programme. At Keyfield, we believe Compassion and Wisdom are the guiding virtues in achieving our continued success. “ ”
20 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) GROUP CEO’S MESSAGE (cont’d) KEY ACHIEVEMENTS IN FYE 2024 (CONT’D) Our financial results for FYE 2024 underscore our commitment and dedication to operational excellence and robust execution of various strategic initiatives. We are pleased to report a record annual revenue of RM687.2 million, reflecting a 59.6% increase from FYE 2023. The Group’s earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) was RM360.3 million, an 82.6% increase from FYE 2023’s EBITDA of RM197.4 million. Our profit attributable to owners of our Company (“PATAMI”) reached a notable RM226.9 million, more than double the previous year's figure of RM105.5 million, marking the third consecutive year of such level of growth. The past year has been a testament to Keyfield’s execution of various strategic business plans which were initiated over the past few years. We had, in December 2023, received the Securities Commission’s approval for our IPO on the Main Market of Bursa Securities. We subsequently issued our prospectus on 26 March 2024 and were listed on 22 April 2024, and fully utilised our IPO proceeds within the year, in accordance with their intended utilisation as set out in our prospectus. The bulk of the IPO proceeds were utilised to settle the balance purchase considerations of Keyfield Wisdom and Keyfield Helms 1, redemption of cumulative redeemable non-convertible preference shares (“CRNCPS”) and repayment of bank borrowings. While it may be perceived that most of the IPO proceeds are used to repay borrowings and not for expansion, the contrary is true. In fact, we had planned our expansion through asset acquisitions strategically during the years 2021-2023 for Keyfield Kindness, Keyfield Compassion, Keyfield Commander, Keyfield Grace, Keyfield Wisdom and Keyfield Helms 1, and used various financial instruments to pay for them. This benefits new investors as all these assets were already income-producing at the time of the IPO. Our IPO were a culmination of this plan, whereby the proceeds allowed us to lighten our balance sheet, and our net gearing became zero. Subsequently, we embarked on the next phase of capital fundraising, whereby we established our Sukuk Wakalah programme of up to RM1.0 billion in October 2024, having obtained an AA3 rating from RAM Rating Services Berhad (“RAM”). We successfully raised gross proceeds of RM200.0 million from this programme in December 2024, which arms us with a ‘war chest’ to be on the lookout for strategic asset acquisitions which will further enhance shareholder value. On the operational front, in January 2024, we successfully renewed our PETRONAS licence for a period of another 3 years until 2027. Such renewal was then followed by our appointment as panel contractor to Petronas Carigali Sdn Bhd (“PCSB”) and petroleum arrangement contractors (“PACs”) for offshore support vessel services for a period of 3 years until 2027, extendable by another 3 years. The licence renewal and panel contractor appointment is testament to our strong commitment to operational excellence and health, safety and environment initiatives, and the trust placed in us by our customers. We have laid a solid financial and operational foundation, charting a steady course for our continued dynamic growth. As we move forward, we remain committed to driving innovation, expanding our capabilities, and delivering longterm value to our stakeholders. OUTLOOK FOR THE OSV SECTOR IN MALAYSIA The OSV sector, particularly the AWB segment, is poised for sustained growth in the coming years. Persistent vessel supply tightness, stemming from years of underinvestment, continues to provide a stable outlook for the sector. This supply constraint is further reinforced by Malaysia’s cabotage policy, which limits the participation of foreign vessels, and the requirement for younger fleets, with the current vessel age cap set at 20-25 years for tenders. With an average fleet age of 14 years, the sector is nearing a critical point for fleet renewal, which will be essential to maintaining long-term operational efficiency and meeting growing demand. (Source: Kenanga Research Report, December 2024) As stated in PETRONAS Activity Outlook 2025-2027, Malaysia’s upstream industry is experiencing a surge of investments with more than 80.0% of Malaysia’s offshore acreage awarded to PACs. To this end, PETRONAS remains steadfast in its target to grow and sustain Malaysia’s oil and gas production to 2 million barrels of oil equivalent per day (MMboe/d). This target will be realised through key projects such as Kasawari, Gumusut-Kakap Redevelopment, Bekok Oil Redevelopment, Tabu Redevelopment and Seligi Redevelopment, amongst others. For the next 2 years, approximately 15 exploration wells are forecasted to be drilled each year focusing on shallow water wells and deepwater wells. Apart from wells, exploration activities also include nonseismic, seismic and geological studies which are crucial for de-risking and maturing of prospects. This, in turn, will create a cyclical impact, fostering the development of additional projects that benefit the entire ecosystem. Over the next 3 years, more than 400 wells are forecasted to be drilled, and 39 upstream projects are expected to be executed.
21 ANNUAL REPORT 2024 GROUP CEO’S MESSAGE (cont’d) OUTLOOK FOR THE OSV SECTOR IN MALAYSIA (CONT’D) Outlook for OSVs the next 3 years depicts a moderate requirement in 2025 with minor fluctuations in demand until 2027 which is reflective of the planned drilling, maintenance, construction and modification (“MCM”), hook-up and commissioning (“HUC”) and turnaround and inspection (“T&I”) activities during that period. The expected combined number of AWBs and barges to support drilling and projects is 38 for 2025, with the majority of vessels required to support Drilling (Exploration and Development) and projects will be sourced via PAC’s panel contractor contract. Meanwhile, based on supply and demand analysis of OSVs in Malaysia, there will be a critical shortage of AHTS < 80MT beyond 2030, unless owners acquire new vessels. (Source: PETRONAS Activity Outlook 2025-2027) Our strategic focus lies in the AWB sector, a vital component of Malaysia’s upstream oil and gas industry, enabling us to capitalise on the tight supply-demand conditions. Malaysia’s upstream activities remain competitive, driven by efforts in maintenance, production optimisation, and the development of marginal fields. These initiatives are critical to sustaining output and extending the lifespan of existing assets, ensuring the sector’s competitiveness in the years ahead. PROSPECTS FOR 2025 Keyfield Group is primarily involved in the provision of offshore accommodation via its vessel chartering business and mainly serves the offshore oil and gas industry in Malaysia. For the financial year ending 31 December 2025 (“FYE 2025”) and foreseeable future, we expect our business activities and its prospects to be closely related to the level of offshore activities in Malaysia. We remain cautiously optimistic about our prospects for FYE 2025 and beyond, in view of the above outlook for the OSV segment since we are panel contractor for AWBs, AHTS and PSV. We remain committed to capitalising on emerging business opportunities while managing our fleet and operations prudently and carefully, staying vigilant to the challenges posed by the evolving business environment which we operate in and beyond. We have also been expanding our fleet with additional own vessels especially since 2022, which has been a key driver for our revenue and profit growth in these years. Post-IPO, we have strengthened our balance sheet and with our maiden Sukuk Wakalah issuance amounting to RM200.0 million, this resulted in a healthy cash and cash equivalents balance of RM321.6 million with no other bank borrowings as of 31 December 2024. Building this “war chest,” coupled with timely vessel acquisition opportunities, has enabled us to achieve our fleet expansion targets outlined in our IPO Prospectus, as below: 1. Acquisition of Keyfield Itqan, a DP2 AWB, which was completed in July 2024; 2. Acquisition of Keyfield Aulia, a DP1 AHTS, which was completed in August 2024; 3. Entering into a Shipbuilding Contract with a shipyard to construct a newbuild DP2 AWB. The newbuild DP2 AWB will have enhanced features such as a larger accommodation capacity of 239 persons, diesel-electric propulsion systems for fuel savings, solar panel with battery pack, larger deck space and higher capacity main crane. We expect to take delivery of the newbuild DP2 AWB in 2026. In January 2025, we also acquired Keyfield Gratitude, a 78.5M DP2 Platform Supply Vessel, which has completed its dry dock and ready to be deployed into our chartering operations. We are pleased to announce our successful expansion into India and the Middle East with the deployment of Keyfield Lestari (“Lestari”), our 4-point mooring AWB operating in India, and Keyfield Aulia, our DP1 65T bollard pull AHTS serving the Middle East market for about 2 years. This international expansion not only strengthens our global presence but also represents a strategic move for Keyfield in terms of optimising fleet utilisation and enhancing overall operational efficiency throughout the year.
22 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) PROSPECTS FOR 2025 (CONT’D) The sale of Lestari, which is targeted to be completed in June 2025, came at an opportune time as the vessel is already actively deployed in the region. The disposal is intended to unlock Lestari's value, bringing in a profit of approximately RM28.0 million to the Group. It is part of our fleet renewal and enhancement strategy as Lestari has relatively lower specifications compared to our other AWBs. In April 2025, we announced that we had entered into agreements to acquire Keyfield Blessing, a DP2 cable laying barge and to immediately bareboat charter it out to earn income. Keyfield Blessing is a specialised barge designed to install underwater cables, especially for power cables connecting offshore wind farms to the main grids and could also be retrofitted for laying telecommunication data fibre optic cables. Its DP2 system, with its cable load capacity of 7,000 MT and cable laying plow reaching 5 metre depth, is able to self-propel while undertaking cable-laying jobs at a speed of 600 metres per hour. Keyfield Blessing will be deployed to the Farasan Submarine Cable Project in Saudi Arabia for a period of one year plus extension option of another year. As cable laying is a new venture for our Group and the project location is in Saudi Arabia, a bareboat charter model reduces operational risks yet at the same time generates steady cash inflow to us. This acquisition aligns with our strategic vision to diversify our fleet of vessels to be able to serve different industries, in line with our midterm objective of increasing non-oil and gas revenue, contributing up to 20% of our Group’s total revenue. We believe these augurs well for our prospects as we are able to continue to prudently acquire suitable vessels to be deployed into our vessel chartering business. This also aligns well with our long-term sustainability agenda to achieve fleet renewal focusing on vessels with higher capabilities and deployable to a wider range of customers. We will continue to be on the lookout for additional suitable vessels to support our business growth. Meanwhile, we expect supply conditions for OSVs, particularly AWBs which we specialise in, to remain tight in 2025 due to shortage of suitable vessels to support offshore activities. We remain steadfast in our commitment to grow our fleet and operations in a prudent and careful manner, remaining vigilant to the challenges of the ever-changing business environment which we operate in and beyond. RISK OF GLOBAL ECONOMIC HEADWINDS In April 2025, the United States announced sweeping tariffs of at least 10% on imports from over 180 countries, including a reciprocal tariff of 24% on Malaysia, sending shockwaves across global markets. Furthermore, OPEC+ has reaffirmed its plan to gradually restore 2.2 million barrels per day (“mb/d”) of production beginning April 2025 but retains the flexibility to pause or reverse adjustments based on market conditions. Meanwhile, non-OPEC+ producers are projected to ramp up output by 1.0 mb/d in 2026, further widening the supply surplus. (Source: Kenanga Research Report, 8 April 2025). Resulting from the above, various economic experts have flagged these developments as a potential risk to the global economy and may have an impact on global oil prices which could potentially affect our operating environment. Although we are not directly impacted by such tariffs as we are not exposed to the US market, we will continuously monitor the development of such tariffs to assess the risk to our business, should there be any. PIONEERING GREEN ENERGY INITIATIVES We achieved a significant milestone with the completion of our pilot solar photovoltaic (“PV”) project onboard our 500-men accommodation work barge, Keyfield Wisdom. For this project, we engaged Worldwide Holdings Berhad (“Worldwide”), a wholly-owned subsidiary of Perbadanan Kemajuan Negeri Selangor (“PKNS”) and the turnkey project contractor who is renowned for its expertise in energy efficiency and sustainability. The installation of a 121.2kWp solar hybrid system, integrated with a battery energy storage system (“BESS”), reduces the vessel’s reliance on onboard generator sets, reducing fuel consumption and cutting carbon emissions. This initiative aligns with our commitment to sustainability and energy efficiency while supporting our clients’ sustainability agendas, including Petronas Carigali Sdn Bhd and Sarawak Shell Berhad. We are proud that Keyfield Wisdom has been certified by the Malaysia Book of Records for having the most solar panels with battery storage onboard an offshore vessel. Undertaken as a proactive initiative, this project not only reduces operational costs for our clients but also underscores our dedication to advancing ESG goals and driving sustainable practices in the maritime industry. GROUP CEO’S MESSAGE (cont’d)
23 ANNUAL REPORT 2024 FORGING STRATEGIC PARTNERSHIPS As a key player in the local AWB sector, we remain committed to supporting and collaborating with fellow contractors to foster mutually beneficial partnerships. Over the years, Keyfield has actively supported various oil and gas contractors through strategic partnerships and innovative vessel solutions. Among our key initiatives is the conversion of Keyfield Helms 1 (“KH1”), a Platform Supply Vessel into Malaysia’s only DP2 geotechnical vessel equipped with a High Precision Acoustic Positioning (“HiPAP”) system. This conversion enables us to collaborate closely with Helms Geomarine Sdn Bhd, a 100% Malaysian Bumiputera PETRONAS contractor, to meet PETRONAS's stringent requirements and fill a crucial niche in the marketplace. Beyond this, we provide DP2-enabled vessels to support diving support vessel (“DSV”) and remotely operated vehicle (“ROV”) activities, as well as offshore engineering projects. Such collaborative efforts have enabled our partners to seamlessly carry out their operations, enhance their track records, secure long-term contracts, and create pathways for international opportunities. Together, these initiatives demonstrate our shared commitment to advancing Malaysia's maritime capabilities while driving sustainable growth across the offshore services sector. CORPORATE SOCIAL RESPONSIBILITY: A COMMITMENT TO SHARED PROSPERITY At Keyfield, we firmly believe that the definition of success transcends financial performance—it lies in our ability to uplift communities, protect the environment, and foster inclusive growth. Guided by our core values, “RICH” which is the acronym for Respect, Integrity, Contentment and Humanity as well as our corporate social responsibility (“CSR”) motto “Keriangan Berkongsi” (The Joys of Sharing), we have embedded social responsibility into the fabric of our operations, ensuring that our progress creates lasting value for all stakeholders. At the heart of our CSR efforts are our management and employees, who embody the spirit of “Keriangan Berkongsi” as its driving force. In 2024 alone, we invested over RM500,000 in community programs that directly supported 40 beneficiaries across Malaysia, fostering education and empowerment, community support and welfare, and community development. We prioritise education as a key focus area, allocating nearly 50% of our CSR contributions to this vital sector. Our initiatives included supporting a centre that provides free tuition to underprivileged children, as well as providing computer equipment to a school in Tawau, Sabah to improve digital access and enhance students' learning experiences. These efforts reflect our core belief in making quality education accessible to all. Further details on our 2024 CSR initiatives can be found in the Sustainability Statement within this Annual Report. HEALTH, SAFETY AND ENVIRONMENTAL PERFORMANCE The Group prioritises health, safety, and environmental (“HSE”) stewardship as cornerstones of our operations. Through our Environmental Aspect and Impact Assessments (“EAIA”), we systematically identify hazards and implement robust controls to mitigate associated risks across all activities—from vessel operations and technical maintenance to food handling. These efforts are aligned with ISO 14001 and ISO 45001 standards, ensuring compliance with international best practices. By fostering a culture of vigilance, continuous improvement and strict adherence to HSE best practices, we aim to maintain a safe working environment, minimise occupational hazards, and uphold strong safety standards. With that, I am delighted to share that our 2024 HSE performance has maintained zero fatalities and zero Lost Time Injuries (“LTIs”) across all operational activities. GROUP CEO’S MESSAGE (cont’d)
24 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) GROUP CEO’S MESSAGE (cont’d) EXCEEDING OUR TARGET DIVIDEND PAYOUT RATIO We had, in our IPO prospectus dated 26 March 2024, stated that we target a dividend payout ratio of at least 20.0% of our consolidated PATAMI for each financial year, taking into account the working capital, maintenance capital and committed capital requirements of our Group. I am pleased to inform our shareholders that for FYE 2024, we had declared a total of 11.0 sen per share in dividends, representing a payout ratio of 38.9% of FYE 2024’s PATAMI, close to double our initial target. This means that we have returned RM88.3 million in total dividends, or close to half of the gross IPO proceeds, in less than one year since we were listed on Bursa Securities. This was achieved while maintaining robust financial health and net zero gearing at the end of FYE 2024. We remain committed to creating shareholder value both through the dynamic growth of our business as well as sustainable and generous dividend payouts. ACKNOWLEDGEMENTS On behalf of the Board, Management and employees of Keyfield, I would like to extend our heartfelt gratitude to all our esteemed shareholders, valued customers, suppliers, business associates, and service providers for your continued trust and support. I am also most grateful to the Chairperson and the Board for their unwavering support and invaluable guidance during the year. My sincere appreciation also goes to the Management team and employees, who worked above and beyond the call of duty to deliver a successful IPO while also maintaining focus on our daily operations and business activities. Last but not least, I extend my sincere thanks to our crew members for their hard work, commitment, and dedication, which have been essential to the success and safety of our vessel operations. Dato’ Kee Chit Huei Executive Director / Group CEO
25 ANNUAL REPORT 2024 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS OVERVIEW Keyfield is principally involved in the following: - (i) Chartering of own accommodation vessels and provision of related onboard services such as accommodation, catering, housekeeping, laundry and medical support services; and (ii) Chartering of third-party accommodation vessels and provision of related onboard services such as accommodation, catering, housekeeping, laundry and medical support services. We are one of the Malaysia’s leading fleet owners of self-propelled AWB, particularly DP2 equipped AWB. The accommodation vessels which we charter primarily cater for the upstream oil and gas industry. For FYE 2024, our customers primarily comprise PCSB, PACs and oil and gas contractors in Malaysia and in the Malaysia-Thailand Joint Development Area. Our current fleet of own vessels, all of which are Malaysian-flagged, are as follows: - Vessel category Vessel name Type of vessel Available accommodation capacity (pax) Functions Smaller sized vessels Keyfield Kindness 60M DP1 AHTS, 60T bollard pull 50 • A smaller accommodation vessel • An AHTS undertakes projects such as anchor deployment and retrieval, towing of vessels and restocking of supplies Keyfield Aulia 60.5M DP1 AHTS, 65T bollard pull 42 Keyfield Helms 1 76M DP2 Geotechnical PSV 48 • A smaller accommodation vessel • A geotechnical vessel equipped with moonpool to facilitate offshore geotechnical surveys • Can also be used as a PSV to transport materials and equipment between shore and offshore platforms Keyfield Gratitude 78.5M DP2 PSV 59 • A smaller accommodation vessel • A PSV transports materials and equipment between shore and offshore platforms Subtotal 199
26 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) BUSINESS OVERVIEW (CONT’D) Vessel category Vessel name Type of vessel Available accommodation capacity (pax) Functions Medium sized vessels Laguna Setia 1 78M 4-point mooring AWB 208 • Primarily used as a floating hotel with various amenities such as accommodation rooms, meals, laundry and hospital • Used as customer’s offshore office – equipped with meeting rooms, office space and internet connectivity • Deck area used for engineering works performed by our customers and their contractors • Fitted with a main crane for heavy lifting of equipment, between vessel and shore/ offshore platforms • DP2 equipped vessels allow for deployment in harsher, deeper and congested seabed locations Laguna Setia 2 78M 4-point mooring AWB 208 Keyfield Lestari(1) 70.5M 4-point mooring AWB 180 Keyfield Falcon 80M DP2 AWB 200 Keyfield Compassion 85M DP2 AWB 192 Keyfield Grace 78M DP2 AWB 150 Keyfield Commander 75M DP2 AWB 200 Keyfield Amanah 75M DP2 AWB 198 Keyfield Itqan 75.8M DP2 AWB 194 Subtotal 1,730 Larger sized vessel Keyfield Wisdom 123M Accommodation Barge 500 • Similar functions as an AWB but on a much bigger scale • 1 out of only 2 such largesized barges in Malaysia o 500 pax capacity, o 300MT main crane, o 2,220m2 workable deck space Subtotal 500 Total 2,429 Note: (1) On 27 March 2025, we announced that our Group had entered into a memorandum of agreement to dispose Keyfield Lestari to Saraf Corporation India Private Limited. This transaction is currently pending completion.
27 ANNUAL REPORT 2024 BUSINESS OVERVIEW (CONT’D) In 2018, we first obtained our Vessel Owner-Operator licence from PETRONAS with the SWEC code for AWBs. In 2022, we further obtained 3 additional SWEC codes for AHTS, PSV and Safety Standby Vessel. Our PETRONAS licence was last renewed in 2024 and is valid until 2027, when we expect to renew it again. In 2024, we were also appointed as one of the panel contract contractors for AWBs, AHTS and PSVs under PETRONAS’ Panel Contractor Contract (“PCC”). This appointment shall be valid for a period of 3 years effective from the date of appointment issued by the respective PACs to us unless earlier terminated. PETRONAS shall have the option to extend the duration of the appointment for a further period of 3 years. SWEC Code Description SWEC Code holder Panel Contractor 1 21121510S Provision of accommodation work/ construction boat/ barge, non-propelled accommodation/ construction/ barge Y Y 2 21121511S Provision of anchor handling tug/ AHTS/ tow tug boat Y Y 3 21121518S Provision of PSV Y Y 4 21121519S Provision of safety standby/ general purpose/ utility vessel Y N Our status as the PCC grants us the opportunity to participate directly in tenders issued by PCSB and PACs for AWBs, AHTS and PSV, thereby giving us a competitive advantage as there are only a limited number of companies in Malaysia which have such status. SUCCESSFUL LISTING OF OUR GROUP 2024 marked a significant milestone for Keyfield Group as we advanced to the next chapter of growth with our Company’s successful listing on the Main Market of Bursa Securities on 22 April 2024. Through the IPO, we raised gross proceeds of RM188.1 million, all of which have been fully utilised in FYE 2024. Details of the utilisation of proceeds from our IPO is as follows: - Utilisation of proceeds Time frame (months) Proposed utilisation (RM’mil) Actual utilisation (RM’mil) Status Redemption of cumulative redeemable non-convertible preference shares (“CRNCPS”) in Keyfield 1 61.5 61.5 Fully utilised Repayment of bank borrowings 3 3.0 3.0 Fully utilised Settlement of balance purchase consideration for Keyfield Wisdom 1 65.0 65.0 Fully utilised Settlement of balance purchase consideration for Keyfield Helms 1 1 35.0 35.0 Fully utilised Working capital 12 14.6 15.0 Fully utilised with another RM0.4 million re-allocated from estimated listing expenses Estimated listing expenses 1 9.0 8.6 The final total listing expenses is RM8.6 million, all of which has been utilised. The balance RM0.4 million have been reallocated to working capital Total 188.1 188.1 Fully utilised MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
28 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) SUCCESSFUL LISTING OF OUR GROUP (CONT’D) In February 2022, Keyfield had issued 570,000,000 Keyfield CRNCPS as consideration for the acquisition of Keyfield Resolute Sdn Bhd, the owner of Keyfield Compassion and Keyfield Commander and the acquisition of Keyfield Grace. By utilising RM61.5 million from our IPO proceeds to partially redeem the 246,000,000 Keyfield CRNCPS, this resulted in savings of approximately RM1.8 million per annum in dividends payable for such instruments. The balance 324,000,000 Keyfield CRNCPS were also fully redeemed upon our IPO. We had also utilised RM3.0 million to repay term loans from Alliance Islamic Bank Malaysia Berhad, which had been drawn down by our Group earlier to partially finance the acquisition of Keyfield Kindness. Subsequently in FYE 2024, we had also fully settled these term loans using other internally generated funds. In April 2023, as part of our further fleet expansion strategy, we acquired 2 vessels, namely Keyfield Wisdom (formerly known as Blooming Wisdom) and Keyfield Helms 1. The purchase considerations for these vessels were payable over monthly instalments and Keyfield had the option to settle these earlier. We had utilised a total of RM100.0 million of our IPO proceeds to fully settle of the balance purchase considerations, thereby reduce our finance charges. The remaining RM8.6 million and RM15.0 million from the IPO proceeds were utilised towards defraying the listing expenses and for our working capital respectively. FINANCIAL PERFORMANCE REVIEW FYE 2024 FYE 2023 Change RM’000 RM’000 RM’000 % Revenue 687,152 430,451 256,701 59.6 Gross profit (“GP”) 341,958 185,502 156,456 84.3 Profit before tax (“PBT”) 304,245 146,522 157,723 107.6 PAT 227,783 107,115 120,668 112.7 PATAMI 226,942 105,475 121,467 115.2 EBITDA 360,319 197,355 162,964 82.6 GP margin (%) 49.8 43.1 - 6.7 PBT margin (%) 44.3 34.0 - 10.3 PAT margin (%) 33.1 24.9 - 8.2 PATAMI margin (%) 33.0 24.5 - 8.5 EBITDA margin (%) 52.4 45.8 - 6.6 We marked our first year being a listed company by achieving record-high revenue and profits for FYE 2024, the best financial performance in our history. Our revenue increased significantly by RM256.7 million or 59.6%, from RM430.5 million in FYE 2023 to RM687.2 million in FYE 2024. The increase in our revenue was mainly driven by higher chartering and catering revenue from both our own vessels and third-party vessels, whereby our own vessels logged a utilisation rate of 80.4% in FYE 2024 compared with 78.8% in FYE 2023. Meanwhile, third-party vessels’ chartered days improved to 2,374 days in FYE 2024 compared to 1,772 days in FYE 2023. Our revenue is recognised based on time charter (i.e. for how many days our vessels are being chartered) and not based on project milestones. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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