Annual Report 2015: Chairman’s Statement

My Esteemed Shareholders,

On behalf of the Board of Directors of Carimin Petroleum Berhad (“Carimin” or the “Group”), it is my pleasure to present the 2015 Annual Report and the audited financial statements of the Group for the financial year ended 30 June 2015 (“FYE2015”).

As a newly listed entity on the Main Market of Bursa Malaysia Securities Berhad, this is Carimin’s first annual report to our shareholders. For FYE2015, the Group reported revenue of RM163.4 million and loss after taxation of RM8.3 million. Carimin has been operating in the industry for over 25 years and has accumulated an extensive project track record and a formidable team armed with the relevant expertise. Today, the Group is ranked as one of the top ten major operators in its areas of expertise – Hook Up and Commissioning (“HUC”) and Production Platform System Maintenance and Upgrading Systems. With international oil majors under its client portfolio such as Petronas Carigali, Petrofac, Exxon Mobil and Newfield, I believe that Carimin has developed a strong prominence in its industry.

Corporate Development
On 10 November 2014, Carimin Petroleum Berhad was successfully listed on the Main Market of Bursa
Malaysia Securities Berhad. This successful listing is a strong testament of our shareholders’ and the market’s confidence in the Group. I believe that our listing has, and will open up a lot more opportunities for the Group moving forward. The HUC contract with Petronas Carigali, which was awarded to us in 2013 with an approved contract value of RM899 million and a contract tenure of five (5) years is progressing well and has contributed to the Group’s revenue and earnings. This contract is by far the biggest approved contract value for the Group. During the financial year, we entered into two collaboration agreements with strategic partners to combine our resources and pursue potential projects.

On 16 February 2015, our Board announced the Group’s First Interim Single Tier Dividend of 1.00 sen bper ordinary share. This interim dividend is in respect of our financial year ended 30 June 2015.

Corporate Governance
The Board of Directors would like to assure our shareholders that the Group is fully committed to maintaining the standards of corporate governance as set out in the Malaysian Code of Corporate Governance. The Board believes that sustainable growth and longterm shareholder value can only be attained with high standards of corporate governance, comprising the practices of transparency, accountability, integrity and the highest standards of professionalism, expertise and technical know-how.

These measures are further described in the Corporate Governance Statement section of this Annual Report.

Moving Forward & Future Prospects
The overall outlook of the economy is still uncertain, with relatively adverse macro and micro economic factors impacting most industries globally. Moving
forward, I believe that we will strive cautiously and bensure that we take prudent measures to mitigate risks in this volatile climate.

We were unfortunate to have faced a downtrend in the Oil b& Gas sector in our debut year as a public listed company. However, I believe that every cloud has a silver lining, and we have to persevere through the tough times in order to come out stronger when the industry stabilises.

The Group plans to take advantage of the current economic climate to consolidate our resources identifying cost cutting measures to streamline our operations in order to increase our efficiency and to take proactive measures to prepare for the next uptrend in this cyclical sector. It is also our plan to enhance our technical capabilities in order to expand and broaden our range of services to maintain our competitive edge. The Board and I are optimistic that the sector will improve as is the case with any cyclical industry, and that we have to ensure that we are well prepared to ride the uptrend when that happens.

In addition to these initiatives, the Group will continueto actively bid for new jobs in order to replenish our order book.

Our Appreciation
On behalf of the Board I would like to express our sincere gratitude for the hard work and dedicationof our employees throughout the year. Your time and effort has been an important element to the Group’s success and we look forward to your continued effort. To our valued Shareholders, the Board of Directors and I thank you for your continued support, confidence and trust in us. We will continue to persevere and work hard for the creation and preservation of shareholder value.

Tan Sri Dato’ Kamaruzzaman Bin Shariff
Non-Independent Non-Executive Chairman