Integrated Report 2023 69 Performance by Business Division Technology Despite being the primary revenue generator in FY2023, the substantial decrease in semiconductor demand significantly impacted the profitability of SilTerra. We faced challenges to meet the loading requirements necessary for profitability and operated at a loss while fulfilling customer orders. However, it is crucial to recognise that cyclical demand patterns are inherent to the semiconductor industry, and such fluctuations are to be expected. Despite the challenges faced, the long-term viability of our semiconductor business remains promising with significant future potential. Moreover, our strategic investment since 2022 to diversify beyond our core business into emerging technologies such as microelectromechanical systems (“MEMS”) and Silicon Photonics will be instrumental in strengthening the resilience of this business segment against future demand fluctuations. Not only do these products command higher average selling prices, but they also have numerous applications across rapidly growing industries such as Artificial Intelligence (“AI”), electric vehicles (“EV”) and the medical sector. With ongoing product testing and qualifications with new global customers, coupled with a 20% expansion of our manufacturing capacity completed in 2023, we are well-prepared to capitalise on future demand. Energy With oil prices remaining favourable over the past 18 months, our Energy segment has enjoyed steady revenue during FY2023. Despite the UK’s EPL resulting in a total of RM143.2 million in deferred tax liabilities, Ping’s dedication to operational excellence and cost efficiencies enabled it to maintain profitability for five out of the last six quarters. With the EPL posing challenges to rapid expansion in the UK, the Group swiftly redirected its expansion efforts towards opportunities in Malaysia to diversify revenue streams and mitigate risk exposure. In FY2023, Ping acquired working interests in three new fields from PETRONAS: the Meranti and Abu Clusters off the east coast of Peninsular Malaysia, and the A Cluster in Sarawak. These fields offer promising prospects both in the near and long term, particularly with the late-life Abu Cluster asset showing potential for revenue generation as early as the first quarter of 2025. This diversification closer to home will fortify our financial foundation, enabling us to pursue our long-term ambitions in the UK with greater confidence. Consequently, we have enhanced our prospects in the UK North Sea by acquiring a 42.5 per cent interest in the Fyne oil field in November 2023. Strategically located near our existing Anasuria operations, our future developments at the Fyne field will enable us to benefit from cost optimisation and operational efficiencies as we leverage resources and equipment across multiple projects. REVENUE RM999.2 million REVENUE RM622.5 million EBITDA RM67.7 million EBITDA RM376.8 million OPERATING LOSS -RM47.4 million OPERATING PROFIT RM262.8 million
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