Yinson Annual Report 2018

APPRECIATION On behalf of the Board, I would like to express my utmost appreciation to the countries where we are operating around the world, regulators, clients, associates, financiers, vendors, advisors and respective stakeholders for their continuous support of Yinson which has enabled us to reach our aspirations to be a leading FPSO provider to the global O&G sector. It is with this support that we can continue to achieve such exceptional growth and financial performance. While it is important to achieve outstanding financial results, it is equally as important that we conduct ourselves in a manner that treats all parties – employees, customers, regulators, associates, vendors and shareholders – in a fair and transparent way, which we have elaborated upon in the Sustainability Statement. In addition, the Group is determined to ensure that Yinson remains a place where all our people have the opportunity to fulfil their potential in a nurturing environment that encourages the right behaviour. Our stakeholders expect integrity and we will continue to foster a culture which encourages people to do the right thing. Finally, I would like to express our special appreciation and thanks to each member of the Management team as well as to our people who are stationed around the world. Your efforts, commitment and contribution are what drives the success of Yinson in whatever we venture to accomplish and wherever we are present. Our success as a leading, world class FPSO service provider is the result of your dedication. MOVING FORWARD According to the World Energy Reports’ 2018 Forecast Report, the outlook for floating production system orders over the next five years from 2018 to 2022 is considerably brighter compared to projections made last year, with the number of production floater orders and projected capital expenditure increasing more than 30% from their 2017 to 2021 forecast. While the outlook for the industry show signs of improvement, the Group is constantly mindful of micro andmacro-economic factors which may impact us in any way and we will continue to strive to secure valuable opportunities on win-win terms for both the Group and our clients through entering into long term and strong charter contracts with reputable and financially sound clients. We continue to align our business strategies with our sustainability plans to continue to grow the business for the long term. The Group will also continue to remain prudent in our operational and financial management for the coming year in order to ensure that we constantly maintain our track record of reliable and profitable project executions for every FPSO asset that we operate at close to 100% uptime. With our Japanese consortiumallies now on board we are also able to leverage on their collective and individual strengths to develop a more significant presence in the FPSO market. The Group prides itself on its ability to deliver on time or ahead of schedule with our FPSOs running at high efficiency and we intend to continue to do so for FYE2019. We are optimistic that with the recovery in oil prices, together with the lagging global investment in oil production over the past few years, will lead to an increase in investment for O&G production and this will also result in corresponding higher demands for FPSOs in the near future. As such, we will be strengthening our position as well as our capabilities in the industry to be in an optimal position to secure valuable projects when the opportunities arise. MR LIM HAN WENG Group Executive Chairman Corporate Overview Stewardship Governance Accountability 39 Yinson Holdings Berhad Annual Report 2018