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)
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