FINANCIAL POSITION AND LIQUIDITY REVIEW (CONT’D) Statement of Cash Flows FYE 2025 FYE 2024 Variance RM’000 RM’000 RM’000 % Net cash generated from operating activities 235,162 301,370 (66,208) (22.0) Net cash used in investing activities (255,080) (148,397) (106,683) 71.9 Net cash (used in)/ generated from financing activities (64,227) 100,283 (164,510) (164.0) Net (decrease)/ increase in cash and cash equivalents (84,145) 253,256 (337,401) (133.2) Effect of exchange rate changes (2,518) (206) (2,312) 1,122.3 Cash and cash equivalents at the beginning of financial year 321,590 68,540 253,050 369.2 Cash and cash equivalents at the end of financial year 234,927 321,590 (86,663) (26.9) As at the end of FYE 2025, our cash and cash equivalents stood at RM234.9 million, representing a net decrease of RM86.7 million from the previous financial year. Our operating activities generated net cash of RM235.2 million in FYE 2025, which was lower than FYE 2024 by RM66.2 million or 22.0%, primarily due to lower Group’s revenue and profit for FYE 2025, as discussed above. Our Group’s net cash used in investing activities increased to RM255.1 million in FYE 2025, mainly due to the acquisition of property, plant and equipment, primarily consisting of vessels, vessel equipment and dry docking as well as progress payments towards the shipbuilding of a new DP2 AWB. Details of our capital expenditure in FYE 2025 are included in the following section below. Our Group recorded a net cash outflow from financing activities of RM64.2 million in FYE 2025, the bulk of which was due to dividends paid to our shareholders of RM72.5 million as we continue to reward them. Other financing activities which showed outflows for the financial year were repayment of lease liabilities and term loans, which we paid in accordance with their respective payment schedules, and purchase of treasury shares of RM2.8 million as we implemented share buy-back during the financial year. These were partially offset by the drawdown of the vessel term loan of RM27.6 million and proceeds from exercise of employees’ share options of RM4.3 million. In FYE 2024, we had carried out various fundraising exercises which resulted in net cash from financing activities of RM100.3 million. The net inflow in FYE 2024 was largely attributed to RM196.7 million net proceeds from our maiden Sukuk Wakalah issuance in December 2024 and RM182.7 million net proceeds from our public issue in conjunction with our IPO. While we had fully utilised the net IPO proceeds in FYE 2024, the Sukuk Wakalah proceeds remained in cash and cash equivalents as at 31 December 2024. Such inflows were partially offset by dividends paid in FYE 2024 of RM79.3 million. Subsequently in FYE 2025, we had partially used our Sukuk Wakalah proceeds to finance 2 of our vessel acquisitions. Our cash and cash equivalents position is very healthy and hold us in good stead for our future expansion plans. 27 Annual Report 2025
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