Capital Commitment RM’000 Acquisition of property, plant and equipment 92,829 Apart from the above, we spent RM54.3 million in FYE 2025 on vessel equipment and the dry docking of our vessels, which was higher than FYE 2024 mainly due to scheduled special surveys for our fleet. It is our strategy to continuously ensure that our vessels remain in optimum condition to serve our customers well. To this end, we invest in suitable new vessel equipment as and when required. Furthermore, as we operate in a highly regulated 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 2025, our Group’s capital commitment was as follows: - CAPITAL STRUCTURE, RESOURCES AND EXPENDITURE (CONT’D) The above capital commitments comprise RM74.3 million for the balance payments on our newly-built DP2 AWB, which is scheduled for completion in FYE 2026, with the remainder allocated to vessel equipment and dry docking for our existing vessels. ANTICIPATED AND KNOWN RISKS In line with a dynamic and evolving business environment, we are exposed to a range of risks that could impact our operational performance and financial position if not effectively managed. To manage these risks, we have implemented a structured Risk Management Framework to systematically identify key risks, assess their potential impact and deploy appropriate mitigation measures to minimise both their likelihood and consequences. The principal risks identified, together with our corresponding mitigation measures, are outlined below. Dependency on PETRONAS Licence and PCC In order to remain eligible as a panel contractor and to participate in tenders issued by PCSB, PACs and other oil and gas contractors in Malaysia, we must maintain a valid PETRONAS licence and comply with the relevant SWEC code requirements. Leveraging this licence, we successfully secured our appointment as a panel contractor under the PCC from PCSB and various PACs in April 2024 to provide offshore support vessel services in respect of AWBs, AHTS and PSVs. This appointment is valid for a period of 3 + 3 years, with extensions subject to the discretion of PCSB and PACs. For FYE 2025 and the foreseeable future, the majority of our revenue continues to depend on maintaining both our PETRONAS licence and our appointment under the PCC. The loss of this licence would not only result in the loss of our PCC appointment but also restrict our ability to secure new contracts from PCSB, PACs and other oil and gas contractors, potentially leading to a significant decline in revenue unless offset by alternative chartering arrangements. To mitigate this risk, we remain committed to full compliance with PETRONAS licensing requirements and PCC terms and conditions at all times. Nevertheless, should we lose our PETRONAS licence, we would still be able to continue performing existing chartering contracts, as the licence is a prerequisite only at the bidding stage and our contracts do not contain termination provisions solely due to the loss of the licence or PCC. We have also embarked on a strategy of geographical diversification to reduce our reliance on the PETRONAS licence and PCC. During FYE 2025, we deployed vessels to the Middle East and India and secured contracts with customers based in the Middle East, China and Singapore. This diversification has begun to contribute to our revenue base, with RM33.0 million generated from international markets in FYE 2025. We expect this trend to continue, further strengthening our revenue resilience across multiple geographies. 29 Annual Report 2025
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