Yinson Annual Report 2018

BUSINESS OVERVIEW FYE2018 ended with several significant developments coming into fruition for the Group. The year began auspiciously with the naming ceremony for FPSOJohnAgyekumKufuor (“FPSO JAK”), named after Ghana’s former President Emeritus His Excellency John Agyekum Kufuor, which has contributed positively to the Group’s results including the formation of a strategic alliance with a Japanese consortium that will offer us many more opportunities. Yinson also clinched a contract from Talisman Vietnam 07/03 B.V. for the supply, operation and maintenance of a FPSO facility for the Ca Rong Do field development in Vietnam, although the project was recently affected by a “force majeure” event which we will monitor closely and reserve our rights. Our terminated FPSO PTSC Lam Son bareboat charter contract ended on a positive note, with the termination fee received being in excess of the outstanding project loan amount, which has now been fully paid off, and a retrospective effect interim contract to continue deployment at Lam Son field offshore of Vietnam. The year presented an opportunity to enter the Malaysian O&G market itself when Yinson entered into negotiations with 2 parties for a novation arrangement for the provision of EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) and leasing of FPSO facilities at the Layang field, offshore of Miri in Sarawak. Negotiations were concluded recently with a Charter Contract that will see our FPSO Four Rainbow commencing operations there in 2019. The establishment of a strategic collaboration with our Japanese partners is another strong indication of the confidence our partners have in how we execute our projects and the risk management capability of our team. We will leverage the partnership to achieve even greater developments in the business, both geographically and in the magnitude of the projects that we seek to undertake. FINANCIAL PERFORMANCE Despite the period under review having its fair share of volatility, I am pleased to report that Yinson had an outstanding financial year during which we achieved our highest ever annual net profit. The Group managed to record a significant 67.5% growth in revenue along with a 48.4% growth for profit after tax (“PAT”), attributed mainly to better profit contribution and as a result of additional revenue from the offshore and marine businesses through FPSO JAK. For FYE2018, the Group reported a full year revenue of RM910.2 million compared to RM543.3 million in FYE2017 while PAT stood at RM292.1 million for the period under review against RM196.8 million in the previous financial year. As part of the Group’s continuous commitment to reward our loyal shareholders, the Group distributed a total of RM65.3 million in dividends, representing 6 sen per ordinary share in 2017. The Board of Directors (“Board”) has also declared a special dividend of 4 sen per ordinary share for FYE2018 amounting to approximately RM43.5 million, which will be payable on 8 June 2018. Furthermore, the Group has recommended a final dividend of 2 sen per ordinary share amounting to approximately RM21.8 million for FYE2018 to be tabled to the shareholders for approval at Yinson’s forthcoming 25 th Annual General Meeting. The dividends declared and proposed is a testimony to Yinson’s robust financial position resulting from the dedication of the business management team that has allowed us to consistently reward our shareholders. We shall strive to continue rewarding shareholders, while balancing the growth opportunities and dividends. Stewardship Chairman’s Statement (Cont’d) Revenue for FYE2018 Profit after tax for FYE2018 RM910.2 million +67.5% FYE2017: RM543.3 million RM292.1 million +48.4% FYE2017: RM196.8 million 38 Yinson Holdings Berhad Annual Report 2018