Extracted From Annual Report 2025

Dear Shareholders, 

FY2025 was shaped by a complex and often unsettled global backdrop. Around the world, geopolitical tensions and shifting economic priorities created an environment marked by uncertainty and strategic recalibration. Major economies increasingly turned inward, adopting more protectionist and transactional approaches to trade. The re-election of U.S. President Donald Trump added fresh momentum to this trend, with new tariffs and intensified U.S.–China rivalry weighing on supply chains and elevating operating costs across industries. At the same time, long running conflicts persisted, with the war in Ukraine entering its fourth year and the fragile ceasefire in the Israel–Hamas conflict underscoring the broader instability that continued to dominate global risk assessments.

Energy markets mirrored this volatility. Despite occasional surges driven by geopolitical shocks, Brent crude largely trended lower through the year, falling about 14%1 year on year and oscillating between US$58 and US$82 per barrel. Although inventories were tight at the start of the year, strong production levels gradually rebuilt global stocks, signaling that supply remained resilient even in an environment marked by conflicting signals.

In the offshore support vessel (OSV) sector, conditions varied widely across regions. Momentum slowed early in the year as rising political tensions in Malaysia contributed to postponed projects and softer rig demand relative to 2024. Expectations of continued strength gave way to a more subdued operating landscape, with utilisation levels for the OSV sector in Asia Pacific hovering around 50% to 60%2 amid a larger pool of available vessels. On average, AHTS demand and dayrates declined on average by approximately 6% and 5%3 respectively.

Ordering activity also remained muted. Newbuild decisions were concentrated primarily on smaller AHTS units in Chinese yards, with most owners taking a cautious stance given the uncertain market outlook and limited appetite from charterers for longer term commitments.

FINANCIAL PERFORMANCE REVIEW 

The Group incurred a loss after income tax of $0.78 million in FY2025 compared to the profit after income tax of $1.32 million in FY2024. The loss in FY2025 was mainly due to impairment loss on vessel of US$1.50 million and lower gross profits.

Revenue decreased by 20.6% from $26.23 million in FY2024 to $20.83 million in FY2025. The decrease was due to decrease in revenue generated from CHO-owned vessels due to the decrease in utilisation rate from 54% in FY2024 to 47% in FY2025 and a decrease in revenue from third-party chartered vessels. The decrease in utilisation rate for CHO-owned vessels is mainly due to the unavailability of a vessel for charter as the vessel underwent drydocking.

Cost of sales in FY2025 of $10.08 million was lower than FY2024 of $15.14 million due to lower job costs when CHO-owned vessels were not utilised in line with the lower revenue from CHO-owned vessels and third-party chartered vessels in FY2025. Direct depreciation in FY2025 increased from $4.93 million in FY2024 to $5.31 million in FY2025 due to the completion of drydocking of one of the Group’s vessels.

Corporate overheads and other administrative expenses increased by 7.3% from $3.73 million in FY2024 to $4.00 million in FY2025 mainly due to the higher payroll and higher professional fees. Other expenses increased by 154.0% from $0.86 million in FY2024 to $2.19 million in FY2025 mainly due to the impairment loss on vessel of $1.50 million in FY2025. Before this impairment loss on vessel, the Group had a profit before tax of $835,000 in FY2025.

OUTLOOK
The global operating environment has become materially more complex and volatile since 28 February 2026, following the escalation of military conflict involving the United States, Israel and Iran. Since then, energy infrastructure across parts of the Middle East has been subject to repeated attacks, while heightened security risks in the Straits of Hormuz—through which approximately 20% of the world’s oil and LNG trade flows—have severely disrupted maritime movements. Oil prices have trended upwards since March 2026, with a sharp spike to approximately US$116 per barrel, levels last observed during the early stages of the Russia Ukraine conflict in 2022.

In response to these developments, a number of national and international oil companies have curtailed or suspended activities in the Persian Gulf, resulting in oil field shutdowns, charter party cancellations and the abandonment of offshore assets, with several vessels unable to exit the region due to ongoing security concerns. The duration of the conflict and the timing of any stabilisation in the global operating environment remain uncertain. Amid growing concerns over oil and LNG supply, governments are reassessing strategic stockpiles and implementing fuel conservation measures. Earlier expectations of global oil inventory builds have faded, as International Energy Agency member countries consider the release of emergency reserves to mitigate supply disruptions.

Closer to home, regional markets may experience the redeployment of vessels previously destined for the Middle East, particularly against the backdrop of a slowdown in Malaysian offshore activity. Within Malaysia, regulatory uncertainty continues following Petronas’ application to the Federal Court seeking clarity on its operating framework in Sarawak, after prolonged deadlock with Petros over gas distribution matters. While commercial cooperation has progressed in certain areas, unresolved issues continue to cloud regulatory expectations and
contractual obligations. In light of the heightened global uncertainty and increased market volatility, we are approaching the period ahead
with prudence and discipline. Our focus remains on maintaining a strong balance sheet, preserving operational flexibility and exercising careful capital allocation. At the same time, we recognise that periods of dislocation can give rise to opportunity. By remaining financially resilient
and operationally prepared, we are well positioned to respond decisively, pursue opportunities aligned with our capabilities, and create long term value as market conditions evolve.

SUSTAINABILITY
FY2025 marks the tenth year of our sustainability reporting and our first year aligning disclosures with the IFRS Sustainability Disclosure Standard (S2) issued by the ISSB. This transition enhances the comparability and decision usefulness of our climate-related reporting and reflects
our continued commitment to transparency. We have disclosed our Scope 1, 2 and 3 emissions in accordance with the Greenhouse Gas Protocol Corporate Standard, reinforcing our focus on comprehensive environmental
accountability.

Our commitment to excellence is anchored in our PRIME values—Passion, Respect, Integrity and Honesty, Monetary Discipline, and Excellence—supported by our “Do No Harm” philosophy. These principles guide our policies, behaviours, and interactions with all stakeholders, ensuring we operate responsibly and uphold the highest standards across the Group.

Our people remain central to this commitment. We strive to create a fair and supportive workplace that nurtures talent and strengthens teamwork, reinforced by continuous training, development, and engagement initiatives. As a result of our strong safety culture, we have consistently met our zero fatality target and recorded a zero Lost Injury Incident rate in FY2025.

Beyond our organisation, we continue to contribute meaningfully to the communities we serve, particularly
through youth-focused charitable efforts. Strong corporate governance also remains a priority, forming the basis of trust, long-term partnerships, and sustainable business performance. We remain dedicated to further strengthening our governance framework and driving greater transparency, accountability, and resilience across the Group.

IN APPRECIATION

As we reflect on the year, I would like to extend my sincere gratitude to our employees for their dedication and resilience. Their efforts across all functions have enabled us to navigate challenges with confidence and maintain our forward momentum. We also deeply appreciate the continued trust and support of our investors, customers, suppliers and partners, whose collaboration has been vital to our progress and future aspirations. Finally, my heartfelt thanks go to my fellow Directors for their guidance and stewardship throughout the year.