166 1 July 2024 Success Stories
EIC Survive & Thrive 2024
EIC Survive & Thrive 2024
107 Success Stories July 2024
Story type #resilience (main category) #transformation
Sepakat Energy
Benefits
Journeying on a business improvement roadmap to profitability Dzairenny Muslim Managing Director
How is Sepakat Energy thriving? Asset integrity and specialised maintenance company Sepakat Energy is reinvigorated after investing in the development of leadership capabilities and implementation of a business improvement pathway. Now, with a new direction and proper processes in place, the company is operating on a firm footing and turning a profit in its home country of Brunei. The challenge - In the period between late 2019 and early 2020, Sepakat Energy, having been in operation for just over five years, faced a critical challenge. Cashflow sustainability was a major concern as the company had not secured any long-term contracts with local operators. Meanwhile, the commercial arrangements with existing clients were not commercially favourable, and the business was heavily reliant on shareholders’ capital injection, accumulating significant accounts payable and debt. Adding to the challenge, Sepakat Energy’s Technical Manager announced his departure to rejoin a large international oil and gas service company, citing the reviving market demand for his expertise. Despite this, the firm was confident it had the right offering. In establishing technical partnerships and representation agreements with international companies offering unique capabilities, Sepakat Energy knew that in Brunei’s market, dominated by a single major operator awarding long-term multi-year contracts, securing new work would be a matter of patience. However, if the company continued with business as usual, it would not survive in the short term due to its depleted financial capability. The solution - Dzairenny Muslim and Liana Radzak, Sepakat Energy’s co-owners, decided to take hands-on action and fully invest their time in the business, prioritising this venture ahead of other entrepreneurial and employment commitments. In an effort to enhance their capabilities as owners and managers, the owners invested in self-development through coaching and workshops. They explored various avenues to improve their leadership capabilities – this included hiring a business coach to provide guidance and mentoring, attending business
leaderships workshop, and signing up for Brunei Shell’s Energy Business Academy 2.0, where they had access to an exeprienced business mentor. Alongside this, the duo developed a business improvement roadmap to steer Sepakat Energy back into financial sustainability. Here, they identified areas of the business that needed improvement and worked on, setting out a plan to achieve those improvements and close the identified gaps. These included financial discipline and governance, including proper record-keeping and reporting, as well as the setting up of formal HR procedures and processes. Sepakat Energy also invested in the implementation of critical business IT systems such as Office 365, Zoho Books for financial management, and Track & Roll/People Hum for HR management. Furthermore, the company implemented a quality management system and secured ISO9001 certification in 2023. Meanwhile, to enable competitiveness and support operational cash flow, the company renegotiated its existing rates for manpower and equipment and renegotiated existing financing credit lines with its bankers. Hires have also been made, with personnel taken on in finance, HR, admin, and operational roles, with many of the positions filled by talented graduates identified through the Brunei government’s i-Ready scheme. Now, with a better organised and managed business, Sepakat Energy has transitioned into a stable entity which, ultimately, is better able to provide clients with asset integrity and specialised maintenance services. After making losses in 2019, 2020 and 2021, the company moved into the black in 2022 by generating profits for the first time in the company’s history from a revenue of around B$4.6m. Last year, it went one step better, almost doubling its turnover to B$9m and maintaining a profit despite a period of rapid growth in headcount. With a team of just 12 employees in 2019, Sepakat Energy now has more than 100 full time members of staff on its books in 2024. Its revenue pipeline is also looking solid, with several contracts involving pipeline maintenance and inspection, parts provision, ma-
▸ Sepakat’s turnover has almost doubled in one year, maintaining a profit despite a period of rapid growth. ▸ Staff has grown from 12 employees in 2019 to more than 100 in 2024.
Key findings For industry ▸ Focus on business fundamentals and organisation. ▸ The O&G industry in general has historically lagged in the largescale adoption of technology. This gap needs to be addressed and closed in order for productivity and efficiency gains. For government ▸ Access to financing for SMEs in the early years of their development is key. ▸ Digital transformation support including incentives and training for adopting new technologies and tools should be offered.
Sepakat Energy at a glance: Key products and services: energy services business, focused on asset integrity and specialized maintenance services. Main industries served: ▸ Oil and gas – 100% Headquarters: Kuala Belait, Brunei Year established: 2013 Number of employees: 103 Revenue: £5.76m Revenue from exports: N/A
terial preservation services and laser scanning and dimensional control and surveying services currently underway, the longest of which ending in November 2029. After taking a step back to evaluate the business, and dedicating more time to it in the process, Sepakat’s owners have successfully steered the ship back on course.