What I Would Do as CEO / Management of Perdana Petroleum

1. Urgent Financial Reset & Balance Sheet Strengthening
✅ Complete the share capital reduction & restore financial credibility

Perdana is carrying RM600 million in accumulated losses, and management already proposed a capital reduction to wipe these out — leaving RM404.3 million retained earnings at group level post‑exercise.

My actions:

a. Ensure the capital reduction completes by 3Q2026 as planned.
b. Use the strengthened equity position to renegotiate bank terms.
c. Rebuild investor confidence with a clear capital allocation policy (opportunistic buybacks when shares are depressed).

This is essential because the company swung to losses in late FY2025 and needs a confidence reset.

2. Stabilise Vessel Utilisation & Recover Core Operating Profit
✅ Address the collapse in vessel utilisation

Perdana’s utilisation fell sharply:

a. FY2025 revenue dropped due to vessel utilisation dropping from 70% → 52%.
b. 4QFY2025 barge utilisation plunged to 26% from 59%.

My actions:

a. Prioritise long‑term charters over ad‑hoc jobs, even at slightly lower day rates, to stabilise utilisation.
b. Maximise domestic contracts tied to PETRONAS’ upstream commitments, which remain steady.
c. Deploy vessels into high‑charter‑rate regions only AFTER ensuring a replacement income stream, avoiding gaps like the absence of third‑party chartering seen in 2025.

The downturn in utilisation was the main cause of the profit collapse; reversing this is Priority #1.

3. Reposition for the Upcoming OSV Cycle (2026–2028)
✅ Leverage the tightening OSV supply globally

Multiple sources confirm:

a. The OSV market has limited newbuilds due to ESG financing constraints.
b. Tightening vessel supply will provide a structural cushion against rate weakness.

✅ And… geopolitics now favour Southeast Asia

Due to the West Asia conflict and oil price > US$100, oil companies are shifting focus to Southeast Asia offshore projects.

My actions:

a. Reprice Perdana’s OSV charter rates upward in anticipation of regional demand recovery.
b. Position Perdana as the preferred OSV operator for Malaysia and ASEAN producers looking for stable supply.

This is a once‑in‑a‑decade opportunity — OSV cycles run long once they turn.

4. Accelerate Fleet Renewal Strategy (Critical)

The Managing Director already highlighted:

Fleet average age ~14 years, urgent need for renewal.

But newbuilds are expensive AND financing is difficult industry‑wide.

My strategy:

a. Pursue hybrid financing (bank + government green incentives) as advocated by Perdana itself.
b. Acquire 1–2 modern fuel‑efficient OSVs to anchor the “Next‑Gen Perdana Fleet”.
c. Retire high‑maintenance ageing vessels early (costs will worsen as utilisation climbs).

A refreshed fleet = better rates + lower downtime.

5. Go Hard on Government Relations & Policy Incentives

Perdana is proactively requesting:

a. Accelerated capital allowances,
b. Targeted relief,
c. Green vessel financing,
d. SST framework clarity — all due to rising operating costs and decarbonisation pressure.

As CEO I would:

a. Create a formal “Policy & Sustainability Office” to lobby for:

i. Fleet renewal grants
ii. Government co‑funded OSV loans
iii. Zero‑rated SST for maritime support services

b. Align Perdana with Malaysia’s 2050 Net‑Zero Roadmap through hybrid/low‑emission vessel plans.

This will reduce financing cost and create long‑term strategic advantage.

6. Strengthen Operational Discipline & Cost Efficiency

The company’s filings highlight:

Need for operational discipline, cost optimisation, and efficiency improvements.

My actions:

a. Implement digital fleet monitoring to reduce fuel cost, maintenance downtime, and enhance safety.
b. Reorganise logistics and crewing to reduce idle days.
c. Optimise catering & non‑core services, which also saw revenue declines.

This will reduce the volatility seen in quarterly earnings.

7. Diversify Revenue Streams (Beyond OSV Chartering)
While OSVs remain core, Perdana needs resilience.

My diversification plan:

a. Expand into offshore logistics management (not just vessel chartering).
b. Offer integrated marine services including:
i. marine personnel supply
ii. barge‑based accommodations
iii. subsea/light construction support
c. Develop JV partnerships with subsea contractors for marginal field projects.

Objective: reduce dependency on day‑rate cycles.

8. Build a Strategic Partnership with PETRONAS

PETRONAS’ upstream activity outlook remains strong:

Targeting 2 million boe/day production (2025‑2027).

My actions:

a. Align Perdana fleet renewal with PETRONAS’ long‑term OSV requirements.
b. Secure multi‑year framework agreements.
c. Strengthen local content contributions to move into “preferred vendor” category.

This ensures stable utilisation.

9. Improve Investor Relations & Market Positioning
Perdana’s share price:

Fell >15% YoY to 16.5 sen (Mar 2026).
Fell >35% YoY to 15.5 sen (Feb 2026).

My actions:

a. Host quarterly analyst briefings to highlight turnaround progress.
b. Provide transparent fleet utilisation forecasts.
c. Commit to dividends once cash flow stabilises post‑capital reduction.

A clear narrative is essential to re‑rate the stock.

✅ Conclusion — The Turnaround Roadmap
If I were the CEO of Perdana Petroleum, the immediate 24‑month strategy would be:

1. Complete capital reduction → Clean balance sheet
2. Restore vessel utilisation → Lock in long‑term charters
3. Ride the geopolitical OSV upcycle → Price aggressively
4. Renew the ageing fleet → Green financing + targeted incentives
5. Drive operational efficiency → Digital fleet management
6. Strengthen PETRONAS partnership → Secure anchor contracts
7. Diversify marine service offerings
8. Rebuild investor trust → Transparency + disciplined capital management

This approach positions Perdana not just for survival, but to lead the next OSV super cycle emerging in Southeast Asia.

Here are the key positive impacts of this capital reduction exercise:

· Financial & Accounting Impact: The company will eliminate RM195.36 million in accumulated losses. Post-exercise, it will have positive retained earnings (RM26.3 million at the company level and RM404.3 million at the group level), making the financial health look much stronger on paper .
· Dividend Potential: Before this, Perdana couldn't pay dividends due to accumulated losses. By clearing the deficit and creating positive retained earnings, the company enhances its ability to pay dividends to shareholders in the future .
· Corporate Perception: Management expects this to strengthen credibility with customers, financiers, and investors. It realigns the issued share capital with the company's actual financial position, which may improve access to financing for growth initiatives .
· Share Price Impact: There is no direct impact, but the market's perception of a healthier balance sheet and future dividend prospects could influence the share price over time.
· Operational Impact: None directly. The company continues its offshore marine services business as usual. This exercise fixes the past (losses) but doesn't change current operations or contracts .