Our operating performance | Asset monitoring and sustainment Market context During the reporting period, the market for our asset monitoring and sustainment services was influenced by several global trends, including the expansion of the renewable energy sector and the growing electrification of terrestrial and maritime transport, mining machinery, and other major equipment. While coal demand is expected to decline, natural gas and oil are projected to continue playing a key role in the energy mix for the foreseeable future, sustaining demand for our related services. As part of our long-term sustainability commitment, we are engaging with customers in the oil and gas sector to help them navigate energy transition and their carbon reduction goals. Simultaneously, geopolitical tensions and the rising threat of physical and cyber risks have underscored the need for robust asset protection. Climate change pressures are also not only prompting customers to accelerate their energy transition plans, but also exposing their assets to more frequent extreme weather events. In North America, the Inflation Reduction Act and other regulatory measures continued to drive investments in renewable energy and carbon capture. Natural gas continued to be a major energy source, particularly for electricity generation and for hydrogen generations projects. Looking ahead, hydrogen is expected to play a more significant role in North America’s energy mix, particularly as a clean fuel for transportation and industry. In Australia, coal power station retirements continued, a comprehensive National Hydrogen Strategy was put in place and the offshore wind market was helped by policies to support renewable projects. Moving from those broad trends to specific market conditions, the asset monitoring market is evolving towards a more procurement-driven approach, in which companies optimise their supplier selection and risk management strategies to generate the best value for their investments. We responded by engaging with our customers to continuously demonstrate the increased value and support we can provide. To ensure we maintain market relevance, we intensified our focus on delivering high-quality solutions at effective price points. In addition, large companies are increasingly leveraging their resources to build their own data storage solutions to unlock the potential of their data to drive innovation and support advanced analytics and machine learning applications. Our cloud-based data analysis platform BMT DEEP helps customers to harness this potential and positions us as a preferred partner able to support effective data quality, management, storage and analytics. Performance The continued reliance of our customers in the oil and gas sector on asset monitoring and sustainment services, along with our ability to win new work within the growing renewables market, meant that overall, we performed well during the reporting period. We successfully navigated a competitive market in which balancing service rates and team retention are crucial. To address these challenges, we focused on optimising operational costs and enhancing our value proposition. By streamlining processes and adopting efficient technologies, we were able to offer competitive pricing without compromising quality. Furthermore, we are exploring flexible pricing models and strengthening customer relationships by demonstrating the long-term value and benefits of our services. By showcasing the value and superior performance of our engineering and design solutions, we have positioned ourselves as the preferred partner for our customers. To further develop our capabilities, we invested in campaigns that guided the business into new markets: our Australia team won work on a new offshore wind farm capital project development and our global offshore wind campaign achieved its initial goal of building credibility within the market for our asset services, with clear opportunities established by year end. We provide high-value independent engineering and design services to customers in the energy sector. ‘We successfully navigated a competitive market in which balancing service rates and team retention are crucial.’ Strategy and organisation We put strategies in place to retain our key individuals and teams during a period of continuing global talent shortages in the key areas of science, engineering and technology. We achieved this by providing a supportive working environment, professional development opportunities and flexible working arrangements. This helped us to maintain a motivated and skilled workforce. In addition, several strategic hires – including a new global offshore wind campaign lead – helped to add value, exploit market opportunities and support strong customer relationships. We maintained our position as a leader in the industry through regular and prominent participation in global technical symposiums and conferences. These platforms have once again allowed us to shape industry discourse, address challenges and explore innovative solutions. Highlights The winds of change We are partnering with Singapore-based shipbuilder Strategic Marine to support the energy transition in the offshore wind crew vessel industry. This collaboration will deliver advanced Crew Transfer Vessel (CTV) designs that meet strict emissions reduction targets, focusing on cleaner fuel technologies and more efficient propulsion systems. By integrating low-carbon solutions, we aim to reduce the environmental impact of offshore wind operations and help accelerate the shift to renewable energy. (below) “We continue to innovate together to bring about industryleading vessels of the future.” Eng Yew Chan, CEO, Strategic Marine 15 BMT Group Ltd | Review of performance 23-24 14
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