ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 16 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL POSITION OVERVIEW In FYE 2020, the Group invested in two key assets (e.g. Ratu ENRA and the SPM) to service ENRA SPM Sdn. Bhd. (“ESPM”) existing contract with PC Myanmar (Hong Kong) Ltd. (“PCML”) for their Yetagun oilfield in the Andaman Sea. As such, our gearing has increased from 0.14 times in FYE 2019 to 0.82 times in FYE 2020. Despite that, our balance sheet remains healthy with cash and cash equivalents standing at RM53.61 mil compared to RM30.00 mil on 31 March 2019. We will continue to manage our cash prudently according to the needs of our existing businesses and at the same time, carry on investing in new products, services and revenue lines to build a stronger income-generating base for the Group. Net assets decreased slightly from RM123.10 mil as of 1 April 2019 to RM121.80 mil as of 31 March 2020 due to the dividend payout of RM4.0 million or 3 sen per share on 17 May 2019. SEGMENTAL PERFORMANCE Note: * FYE 2019’s PBT of RM13.4 mil excludes an Exceptional Item of an impairment loss on trade receivables amounting to RM15.26 mil arising from a completed construction project in FYE 2019. The division’s strong performance was rooted in from improvements across all major Energy Services business units in FYE 2020. ENRA Kimia Sdn. Bhd.’s (“EKSB”) revenue grew steadily by 5.8% to RM101.31 mil (FYE 2019: RM95.78 mil) and PBT by 7.9% to RM10.35 mil (FYE 2019: RM9.60 mil) in FYE 2020 from the previous financial year. The cyclical rise in demand for specialty chemicals has spurred EKSB’s revenue growth. EKSB’s wholly-owned subsidiary, International Chemicals Engineering Pty. Ltd. (“ICE”) contributed its first full-year year of revenue and PBT of RM13.45 mil (FYE 2019: RM9.00 mil) and RM1.84 mil (FYE 2019: RM1.33 mil) respectively to the Group in FYE 2020. Other than strong demand for gas odorants in Australia, ICE had also completed a design and engineering contract for the development and installation of a LNG Odorant Injection Package in Victoria, Australia, a first of such engineering work for ICE and also ENRA. ENERGY SERVICES FYE 2020 FYE 2018 FYE 2019* RM46.7 mil RM11.4 mil RM161.8 mil RM13.4 mil RM174.7 mil RM19.0 mil Revenue PBT