⊲ Destini’s energy division which houses the Group’s oil and gas as well as renewable energy (“RE”) businesses saw a PATNCI of RM1.40 million in FY2022 from a PATNCI of RM4.70 million a year ago. This was on the back of higher revenue of RM38.91 million from RM29.75 million the year before. ⊲ After years of underinvestment in the energy sector due to the pandemic, there has been a surge in recovery, driven by global demand and geopolitical developments which saw oil prices rose to highs of above US$100 per barrel. As such, capital spending by oil majors increased and is expected to remain steady in the medium to long-term. ⊲ In line to answer the needs of energy transition, Destini has ventured into areas related to RE, which led the Group to pursue solar photovoltaic (“PV”) systems during the fourth quarter of FY2021. ⊲ This had later then paved the way for Destini to having a foothold in the industry with the acceptance of a Conditional Letter of Award from Indah Water Konsortium Sdn Bhd (“IWK”) for the engineering, procurement, construction and commissioning of solar PV systems at IWK’s sewerage plants across the country. ⊲ Destini expects its award from IWK to bear fruit in the year 2023 with the commencement of the construction of the solar PV systems at multiple IWK sewerage plants. ⊲ With the growing demand of decarbonisation, Destini is expecting more opportunities in the RE industry which also includes not only producing energy but also energy storage systems which can be done through Destini ESS Sdn Bhd. ⊲ Destini ESS Sdn Bhd was established to locally distribute energy storage systems for residential and commercial use. This also includes electric vehicle energy storage solutions. With the increase in awareness and demand for electric vehicle usage, Destini is confident that it will be able to supply charging ports for these vehicles at residential and commercial locations. ⊲ Aside from that, Destini is also constantly looking for opportunities to pursue in RE such as hydro power plants and LNG supply. ENERGY Executive Chairman and Management Discussion and Analysis OPERATIONAL REVIEW PERFORMANCE 36 DESTINI BERHAD ANNUAL REPORT 2022
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