32 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) CAPITAL STRUCTURE, RESOURCES AND EXPENDITURE (CONT’D) Apart from the above, we have no other outstanding bank borrowings as at 31 December 2024. In 2025, we intend to drawdown on a 5-year vessel financing facility of RM28.0 million to refinance the acquisition of Keyfield Aulia, which we had completed in August 2024. Further, we have various working capital banking facilities comprising invoice financing, bank guarantees, foreign exchange facilities which are currently unutilised except for bank guarantees required by our customers. With all of the above, we are well-funded and have adequate capital resources for both long and short term. During FYE 2024, we invested a total of RM152.1 million for the following capital expenditure: - Capital Expenditure RM’000 Acquisition of vessels 98,059 Vessel construction work-in-progress 28,770 Vessel equipment, dry docking and others 25,264 Total 152,093 Vessels equipment, dry docking and others 16.6% Vessel construction work-in-progress, 18.9% Vessels, 64.5% We believe that fleet expansion is important for the growth and longterm business sustainability of our Group. Our fleet of own vessels have grown to 13 vessels as at 31 December 2024 and with another, Keyfield Gratitude, our first PSV, joining our fleet in January 2025 to make it 14. In FYE 2024, we had used RM98.1 million or 64.5% of our total capital expenditure to acquire Keyfield Amanah (completed in January 2024), Keyfield Itqan (completed in July 2024) and Keyfield Aulia (completed in August 2024). We had also entered into a shipbuilding contract with Jingjiang Nanyang Shipbuilding Co., Ltd. (“JNS” or “Builder”) and Nantong Shunyang Trade and Development Co., Ltd (“NSTD” or “Trading House”) for the shipbuilding of a new DP2 AWB for a contract price of USD30.5 million, equivalent to RM143.7 million at then prevailing USD:RM exchange rate. Out of this, USD6.1 million equivalent to RM28.8 million partial payment has been made in FYE 2024, with the balance over the shipbuilding period until FYE 2026. Other than the above, we had also spent another RM25.3 million in FYE 2024 for vessel equipment, dry docking of our vessels and others. It is our strategy to continuously ensure that our vessels are in optimum condition in order for us to serve our customers well and to this end, we invest in suitable new vessel equipment as and when the need arises. Further, as we operate in the strict vessel industry where safety is paramount, we are required to perform periodic major maintenance of our vessels every 5 years, commonly known as “dry docking” or “special survey”. The costs of such major maintenance are capitalised as part of our capital expenditure and amortised over 5 years, in accordance with generally accepted accounting practices. As at 31 December 2024, our Group’s capital commitment is as follows: - Capital Commitment RM’000 Acquisition of property, plant and equipment 120,924 The above capital commitments represent RM109.2 million for the balance payments for our newly-built DP2 AWB, which is scheduled to be completed in FYE 2026, with the remainder being vessel equipment and dry docking for our own vessels. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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