23 SECTION 2 KEY MESSAGES INTEGRATED ANNUAL REPORT 2025 RAMANATHAN P. R. SINGARAM Chief Financial Officer CHIEF FINANCIAL OFFICER’S REVIEW Total Borrowings RM351.4 million FY2024: RM525.6 million Deposits, Cash & Bank Balances RM400.7 million FY2024: RM352.5 million Net Position Net Cash RM49.3 million FY2024: Net Debt RM173.1 million Gross Gearing 0.34x FY2024: 0.62x Net Gearing - FY2024: 0.21x Net Debt/EBITDA - FY2024: 0.50x CASH FLOW AND BALANCE SHEET The Group generated RM185.2 million in net operating cash, reflecting healthy earningsto-cash conversion and continued discipline in working capital management. The Group transitioned from a net debt position to net cash position during the year, strengthening financial flexibility and positioning the Group to navigate project cycles and pursue selective growth opportunities. Given our international footprint, foreign exchange exposure remains an important consideration. We continue to apply prudent hedging and natural currency matching strategies to mitigate foreign currency volatility. STRATEGIC DEVELOPMENTS AND CAPITAL ALLOCATION A key milestone in FY2025 was the successful listing of Wasco Greenergy. The Group retains a 62.5% equity interest and continues to consolidate Wasco Greenergy within the Group. The Board and Management are evaluating deployment options for IPO proceeds in line with the strategic priorities communicated at listing. These evaluations remain ongoing within our disciplined capital allocation framework. Any material development will be announced in compliance with Bursa Malaysia’s Listing Requirements. Capital expenditure during the financial year amounted to RM111.1 million, primarily directed towards our fabrication yard enhancements and plant upgrades, including the completion of our Dubai engineering yard. This enhances our proximity to clients and strengthens our execution capability in the Middle East. Together with our established pipe coating operations in Kuantan and Qatar, the Group remains strategically positioned within key LNG and gas expansion corridors. Balance Sheet Metrics
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