49 SECTION 3 VALUE CREATION INTEGRATED ANNUAL REPORT 2025 2026 SEGMENT OUTLOOK Against this macroeconomic and geopolitical backdrop, the Group’s outlook for 2026 across its three operating segments is summarised below: SEGMENT-BY-SEGMENT PROSPECTS FOR 2026 Engineering & Fabrication (Energy Division) Positive – supported by the offshore upcycle, FPSO sanctioning, and continued demand for modular fabrication. • Multi-year FID pipeline across West Africa, the Middle East, and Southeast Asia underpins a strong tender outlook for complex EPC and modular fabrication packages. • Batam yard capacity expansion, including increased loadout capacity and enhanced infrastructure, positions the Group to compete for larger, higher-value scopes. • New energy adjacencies (including CCS, hydrogen infrastructure, and wind farm components) offer incremental revenue diversification beyond conventional oil and gas. • Geopolitical risk in the Middle East remains a near-term execution watch item; however, a sustained higher oil price environment could accelerate FIDs in other regions, benefiting order intake. Pipeline Services (Energy Division) Constructive – supported by ongoing pipeline investment and a growing rehabilitation market, although project timing remains subject to geopolitical and energy market developments. • LNG, CCS, and hydrogen infrastructure projects are contributing to new coating demand across multiple regions, although the timing of large pipeline developments remains projectdependent. • Middle East coating plant utilisation remains healthy, supported by Gulf Cooperation Council (“GCC”) NOC capex programmes, although geopolitical developments in the region continue to be monitored closely. • Rehabilitation and integrity management work continues to provide a complementary source of recurring revenue, alongside project-driven new-build coating activity. • Advanced coating qualifications (including high-temperature FBE and 3LPP) support competitiveness on technically demanding deepwater and high-pressure pipeline projects. Bioenergy Division (Biomass & Renewables) Positive – reinforced by energy security policy momentum following geopolitical instability and ongoing regional renewable energy mandates. • Southeast Asian governments are accelerating biomass and domestic renewable energy targets in response to heightened energy security concerns; demand for integrated bioenergy packages continues to grow. • After-sales and service revenues from the installed base provide a resilient recurring income stream. • Expansion into new markets, including Indonesia, alongside the existing plantation, oleochemical, and petrochemical client base broadens the division’s revenue foundation. KEY MARKET TRENDS
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