cultivate safeworkingmind sets and
habits and raiseawarenessof the
OHSAS 18001certified in-house
safetyprocedures andpolicies.
All operational employees of the
Group are required toundergo
internal safetybriefings, external
competency training, orientation
programmes andfireevacuation
drills toensurepreparedness and
cooperationduringemergencies.
Disruptionof business activities
can alsooccur on a larger scale
such as anepidemicoutbreak,
flood, fireor explosions that can
have an adverse impact toour
operations. In this regard, the
Grouphas inplace, abusiness
continuityplan and response
measures for anydisruptionof
business operations toensure
preparedness andcooperation
duringemergencies. TheGroup
alsohas alternative sites for
operations tominimisedowntime.
FinancialRisks
Theoil andgas industry is cyclical
innaturewhichposes challenges
for companies in this sector.
Having sufficient liquidity and a
robust balance sheet has allowed
theGroup toweather theeffects
of the industry’s volatility. However,
theBoard and seniormanagement
review theGroup’s strategy and
finances regularly toensure
continued liquiditywhile identifying
market opportunities for new
avenues of growth.
Inorder toensurefinancial
discipline, theGroup adopts a
policyof collectingpayment before
deliveryor anup-front collection
of non-refundabledeposits, while
closely reviewingoutstanding
debts anddebtors.
Like anyglobal operations, the
Group’s activities are susceptible
to foreigncurrency fluctuations,
primarily inU.S. dollar andEuro.
Such risks areeither hedged
naturallyby a saleor purchase
of amatching asset or liabilityof
the samecurrency and amount
or, wherepossible, theGroup
undertakes spot conversionof
excess foreigncurrencies to
Singaporedollar.
TheGrouphas
inplacean
enterpriserisk
management
framework
to effectively
mitigate
andminimise
significant
exposures to
industry-related,
financial and
operational
risks– to ensure
overallhealth
of theGroup’s
activities and
businesses.
. 47
ANNUAL
REPORT
20 1 7
THE BE ST
I N US
