(1) Our losses recorded for the Financial Year Ended (FYE) 2016 were mainly attributed to Amsito Oilwell Services (Malaysia) Sdn Bhd (Amsito). The revenue generated by Amsito was insufficient to support its direct operational expenses mainly comprised depreciation of wireline equipment, direct labour costs and rental of equipment during the FYE 2016. In addition, our overall Group revenue for the FYE 2016 was adversely affected by the decline in global crude oil prices during the year, which resulted in lower Oil & Gas industry activities in the upstream sector.

Please read this section in conjunction with Reservoir Link Energy Bhd’s Prospectus dated 25 June 2020.