This article first appeared in The Edge Malaysia Weekly on August 18, 2025 - August 24, 2025

After narrowly missing the award last year, Carimin Petroleum Bhd (KL:CARIMIN) secured the Highest Return On Equity Over Three Years award under the energy sector at The Edge Malaysia Centurion Club Corporate Awards 2025. This marks the first win for the company since the awards were introduced in 2019.

The company posted a weighted three-year return on equity (ROE) of 14.7%, outperforming its sector peers. Its annual ROE figures reflect a strong upward trend, rising from 3.79% in FY2022 to 12.62% in FY2023, and reaching a notable 20.3% in FY2024.

This achievement reflects Carimin’s sharp operational focus and ability to adapt amid the cyclical volatility of the oil and gas (O&G) sector. The group’s performance in FY2024 was a particular standout, with net profit more than doubling year on year (y-o-y) to RM42.8 million, on the back of a 22% increase in revenue to RM310.7 million.

The earnings surge was driven by increased offshore activity, higher charter rates for its marine assets, and a write-back of vessel impairments.

Carimin’s core business lies in providing offshore hook-up and commissioning (HUC), topside major maintenance and related engineering services, primarily for clients such as Petroliam Nasional Bhd (Petronas). These are undertaken via its flagship construction, hook-up and commissioning and topside major maintenance division — the group’s biggest revenue contributor.

In FY2024, this division accounted for nearly 65% of the group’s turnover, rising 40.8% y-o-y to RM201.6 million on the back of work orders under its maintenance, construction and modification (MCM) and integrated HUC contracts. These gains came largely from the gas cluster and shallow clastic offshore projects.

Complementing this was Carimin’s manpower services division, which posted a 15.8% revenue increase to RM66.8 million, reflecting higher payroll and reimbursable claims as more O&G projects came online.

While revenue of the marine services division fell 21.4% y-o-y to RM42.3 million, the group benefited from improved charter rates for its own vessels and has since acquired a new fast crew boat to capture rising demand as Malaysia’s vessel fleet ages.

“The group’s achievement of higher revenue and net profit, despite a challenging operating environment, underscores the resilience of our business model and the effectiveness of our strategies,” the group noted in its FY2024 annual report.

“Our ability to perform during uncertainties has not only demonstrated our strength but positioned the group more competitively to seize emerging opportunities as oil and gas activities gain momentum. We are now better equipped to capitalise on the upward shift in the industry, driving continued growth and value creation.”

Having established a firm foothold in upstream offshore services, Carimin is now eyeing growth through capability expansion, strategic alliances and diversification. Key to this is the addition of engineering, procurement, construction and commissioning (EPCC) capabilities, especially in onshore gas pipeline infrastructure.

In East Malaysia, Carimin has teamed up with Evolusi Bersatu Sdn Bhd to pursue MCM and HUC packages in Sabah. It expects ongoing projects to spill over into the second quarter of 2025, ensuring sustained momentum in this segment.

Its marine services division is also poised for further growth, following a renewed agency partnership with DOF Subsea Asia Pacific Pte Ltd, enabling Carimin to market subsea assets and remotely operated vessels in Malaysia, which is part of its strategy to tap into underwater inspection, repair and maintenance contracts.

Beyond traditional O&G services, Carimin’s civil construction division is exploring ventures into renewable energy, in line with Malaysia’s energy transition agenda. The group has also signalled interest in carbon capture and storage, particularly around Petronas-led cluster developments using depleted gas fields.

“We will continue to focus on expanding our EPCC business, with ongoing plans to set up a yard in Labuan, thereby supporting local industry initiatives. The successful delivery of our Bougainvillea project demonstrates our strengths and capabilities in onshore pipeline construction works and provides us with a competitive edge,” Carimin said.

“Moving forward, we will increase our efforts to scale up our activities in East Malaysia in 2025 and expand our capabilities across key strategic areas to ensure continued value creation in Malaysia’s evolving energy landscape.”

As it charts its next chapter, Carimin remains cautiously optimistic. With Malaysia’s O&G activities rebounding and a pipeline of new ventures underway, the company is positioning itself not as just a niche player but also as a competitive and agile service provider in a rapidly evolving energy landscape.

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