In parallel, we installed a cutting-edge thick wall plate rolling machine at our Teluk Panglima Garang yard. This addition solidifies our position as a premier provider of regional thick wall process equipment. With this advanced machinery now integrated into our operations, our primary objective is to substantially reduce production time and streamline our operational processes, positioning us to effectively capture the burgeoning market demand. Bioenergy Services Our Bioenergy Services, headquartered in Malaysia and with a significant presence in Indonesia, stands as a leading force in the renewable energy and agro-industry sectors, with a strong emphasis on biomass energy generation. Operating across regions and in South America, our segment plays a crucial role in advancing sustainable energy solutions and promoting responsible agricultural practices. Despite navigating global challenges, we have remained steadfast in our commitment to enhancing operational efficiencies and fostering collaboration among our diverse operations worldwide. This strategic restructuring aims to fortify our foundations, positioning us to capitalise on economic recoveries within our markets. In 2023, Bioenergy Services showcased commendable performance, achieving a revenue milestone of RM288.8 million, marking an 8.4% year-on-year increase, with a corresponding PBT of RM48.4 million, reflecting robust growth of 31.9%. This impressive performance was primarily driven by a surge in biomass energy projects, buoyant boiler sales, and heightened demand for agro-tech equipment. During the year, we proudly introduced our cutting-edge empty fruit brunches (“EFB”) CoGen boiler, meticulously engineered for biomass energy generation. This state-of-the-art boiler boasts exceptional efficiency, capable of seamlessly burning a substantial percentage of challenging EFB in a continuous operational cycle, thus ensuring an uninterrupted power supply crucial for industrial operations. The successful completion of two EFB CoGen projects, coupled with positive feedback from our industrial clients, has not only solidified our reputation but also led to another repeat order for 2024. This significant achievement not only underscores our commitment to innovation and excellence but also opens up new avenues for us to expand our market reach. By showcasing the superior performance of our boiler offerings, we are poised to penetrate a broader industrial sector, aligning perfectly with our strategic focus on delivering higher value offerings beyond traditional palm oil mil (“POM”) boilers. Despite being slightly lower than the previous year’s record of 113 units sold, the sale of 105 steam turbines this year highlights the sustained and robust demand for our offerings in biomass energy generation. This consistent demand not only underscores the reliability and effectiveness of our products but also ensures visibility of recurring income from operations and maintenance (“O&M”) services. Consequently, it fortifies the division’s financial stability and augments its long-term growth prospects. Chairman and Managing Director/ Group CEO’s Statement 36 Integrated Annual Report 2023
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