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.
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