Another notable achievement in 2023 was the successful execution of our inaugural coating project related to Carbon Capture and Storage (“CCS”), the Porthos Project. This milestone highlights our unwavering dedication to environmental sustainability and innovative solutions. By actively participating in projects geared towards CCS initiatives, we demonstrate a proactive stance in addressing the challenges of climate change while leveraging our expertise in coatings technology. During the year, progress on executing Yinson’s Agogo floating production storage and offloading (“FPSO”) contract remained steady, staying on track for completion in 2024, showcasing our steadfast commitment to meeting project timelines. Simultaneously, our fabrication yard in Batam adeptly managed nine projects concurrently, even amidst undergoing upgrades. Notably, these projects included delivering 13 units of booster compressors for Thai Nippon Steel and Schlumberger’s Monoethylene glycol (“MEG”) PAR (“Pre-Assembled Rack”) and PAU (“Pre-Assembled Unit’s”). This highlights our operational efficiency and capacity for seamless project management. We are pleased to report no health and safety incidents resulting in fatalities during the year for our Energy Services. Our dedication to continuous improvement drives us to prioritise the safety and well-being of our workforce above all else. We achieve this by implementing stringent safety protocols and fostering a culture of safety awareness throughout our organisation. By doing so, we ensure that all our employees are not only protected but also empowered to perform their duties responsibly. For a comprehensive overview of our management of health, safety, and the environment, stakeholders are encouraged to refer to the Sustainability Report included in the Integrated Annual Report on pages 44 to 91. Outlook for Energy Services As leaders in the energy services sector, we recognise the dynamic nature of the global energy industry, which continually evolve in response to various factors, including technological advancements and sustainability imperatives. Within this landscape, businesses specialising in pipeline coating and engineering and fabrication are pivotal players, driving growth and adaptation to industry changes. Pipeline Coating Market Dynamics The Global Process Pipe Coating Market, currently valued at USD 7.5 billion, is projected to reach USD 10.6 billion by 2032, reflecting a steady growth trajectory. This expansion is fuelled by several key factors, including increased investments in infrastructure development, stringent regulatory standards mandating high-performance coatings for environmental protection, and the growing emphasis on sustainability. The rise of CCS projects further amplifies the demand for specialised coatings capable of withstanding corrosive properties, contributing to the overall growth of the pipeline coating market. Moreover, advancements in coating technologies, such as the development of environmentally friendly coatings, are expected to drive innovation and market expansion in the coming years. Engineering and Fabrication Market Scope Our energy services division operates within a growing global market, with the oil and gas infrastructure market valued at USD 714.4 billion in 2023 and is projected to grow at over 6.7% CAGR from 2024 to 2032. This significant growth trajectory is underpinned by various factors, including increasing demand for energy, exploration and production activities in emerging markets, and the need for infrastructure upgrades to support evolving industry requirements. Additionally, the emergence of digitalisation and data analytics is revolutionising engineering and fabrication processes, enabling greater efficiency, cost-effectiveness, and predictive maintenance capabilities. As the industry embraces these technological advancements, opportunities abound for our division to leverage our expertise in engineering design, modular fabrication, and project management to meet the evolving needs of our clients across the globe. Chairman and Managing Director/ Group CEO’s Statement 34 Integrated Annual Report 2023
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