36 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) FUTURE OUTLOOK AND PROSPECTS (CONT’D) Since 2022, we have been executing a fleet expansion strategy, adding more of our own vessels, which has been a key driver of our revenue and profit growth in recent years. To-date, we own a total of 14 accommodation vessels and will continue to seek additional suitable vessels to support our business growth. This expansion is further supported by our strengthened balance sheet through vendor repayments and the completion of our maiden Sukuk Wakalah issuance, resulting in a robust cash and cash equivalents of RM321.6 million as at 31 December 2024, with no other borrowings from financial institutions. Meanwhile, we expect supply conditions for offshore vessels, particularly AWB which we specialise in, to remain tight in 2025 due to shortage of suitable vessels to support offshore activities. As at 31 December 2024, we had completed the chartering cycle for FYE 2024 and have bid for FYE 2025’s chartering projects, which have yet to be awarded at this point in time as many tenders were only issued in January or February 2025. Meanwhile, in respect of long-term charters which were secured in FYE 2023 and FYE 2024 and are currently still ongoing, our Group has recognised the portion of revenue for the charter period which has elapsed and accordingly, the order book value in respect of these has been reduced. Furthermore, in respect of these vessels which are already committed to longterm charters, we cannot utilise these to bid for new chartering contracts due to their nonavailability. Our order book of RM305.8 million as at 31 December 2024, out of which RM171.8 million is in respect of FYE 2025 and the balance in future financial years, consist of the balance revenue remaining in respect of secured chartering contracts which will be recognised in these periods. The above order book does not include any potential chartering contracts as these are typically secured from March 2025 onwards. We are optimistic that as the year progresses, our order book will be replenished accordingly. Looking forward, we are positive on our Group’s long-term prospects. 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 are also exploring opportunities to diversify our customer base beyond oil and gas sector as well as expanding our regional footprint beyond Malaysia. At the same time, we are cognisant of the recent announcement of reciprocal tariffs to be imposed by the government of the United States (“US”) which various economic experts have flagged as a potential risk to the global economy and which could potentially affect our operating environment. Although we are not directly impacted on 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, if any. DIVIDEND As stated in our March 2024 prospectus, we target to pay out at least 20.0% of our PAT attributable to the owners of our Company for each financial year on a consolidated basis after taking into account the working capital, maintenance capital and committed capital requirements of our Group. Any declaration and payments of dividends is at the discretion of our Board, subject to the requirements of any applicable law, licence conditions and contractual obligations and provided that such distribution will not be detrimental to our Group's cash requirements or any plans approved by our Board. We will formalise our dividend policy in due course. For FYE 2024, the Board declared 4 interim single-tier dividends, totalling RM0.11 per ordinary share, amounting to a total payout of RM88.3 million. This represents a dividend payout ratio of 38.9% for FYE 2024, nearly doubling our Company’s target payout ratio. The 4 dividends paid by Keyfield are tabled below: - Declaration Date Dividend per Share (Sen) Payment Date Total Dividend Paid (RM’000) 1st interim 27 May 2024 1.0 24 Jun 2024 8,000 2nd interim 15 Aug 2024 3.0 13 Sep 2024 24,085 3rd interim 14 Nov 2024 4.0 19 Dec 2024 32,126 4th interim 25 Feb 2025 3.0 28 Mar 2025 24,133 Total 11.0 88,344 It is the intention of the Board maintain a similar dividend payout ratio for FYE 2025. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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