BUSINESS REVIEW: ENERGY • Downstream Equipment Supply and Maintenance (OGPC Sdn. Bhd.) Downstream activities, undertaken through OGPC, include equipment supply, maintenance and support services for the oil and gas industry. These activities complement upstream operations and extend participation along the energy value chain. OGPC serves domestic energy operators and contributes to Malaysia’s oil and gas ecosystem through operational support services and equipment supply. FINANCIAL PERFORMANCE The Energy segment recorded an LBT of RM312.6 million in FY2025, largely due to an impairment of RM306.2 million. Excluding this, the segment registered a core LBT of RM6.4 million. Performance during the year was impacted by softer crude oil prices of USD70.30 per barrel (FY2024: USD80.70 per barrel) and lower lifting volumes of approximately 501,000 barrels (FY2024: 614,000 barrels). This was partially offset by lower finance costs following the full settlement of a secured bond in July 2024. Downstream activities through OGPC contributed revenue of RM70.9 million and recorded operating profit, providing a stable contribution to the segment. KEY INITIATIVES AND DEVELOPMENTS During the reporting period, the Group managed producing assets, progressed development projects and expanded downstream services. In the UK, efforts focused on sustaining production from the Anasuria Cluster under tighter operating and fiscal conditions. Actions addressed production decline, output levels and cost efficiency, alongside close monitoring of regulatory changes affecting asset economics. In Malaysia, upstream development projects advanced during the year. The Abu Cluster moved towards first oil following approval of the Field Development and Abandonment Plan for the Abu and Beta clusters. Development work on Beta and Meranti also progressed, supporting medium-term production growth. In the downstream segment, OGPC significantly expanded its supply of equipment and provision of maintenance services to domestic operators. These activities support operational needs in Malaysia’s oil and gas sector and add complementary revenue streams. RISKS AND MITIGATION Oil Price Volatility Risk Challenges The segment is exposed to fluctuations in global crude oil prices, which may affect revenue, cash flow and the economic viability of producing assets. Changes in global supply-demand dynamics and macroeconomic conditions may result in price volatility, impacting overall segment performance. Challenges The segment is exposed to variability in production volumes arising from asset performance, including natural production decline in mature fields, gas supply constraints and unplanned shutdowns. These factors may affect lifting volumes and overall production consistency. Mitigation Cost management and capital allocation remain key levers in strengthening the Group’s resilience under varying price conditions. Continuous monitoring of market developments supports timely operational and investment decisions, while portfolio diversification provides some degree of risk balancing. Mitigation The Group continues to strengthen asset management practices, including proactive maintenance programmes, enhanced production planning and closer monitoring of asset performance. These measures support more stable operations and improved production reliability. Production and Asset Performance Risk DNeX INTEGRATED REPORT 2025 58 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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