Yinson Annual Report 2018

FINANCIAL PERFORMANCE The positive results from the strategic decision to transform Yinson into a full- fledged O&G company and critical milestones achieved during the year under review can be seen in the Group’s FYE2018 financial performance, which saw overall better financials enjoyed by the shareholders resulting in a higher return on equity at 11.09% as compared to 8.18% in the previous financial year. FYE2018 FYE2017 RM’000 RM’000 Extract from Income Statements Revenue 910,156 543,255 Cost of sales 363,790 271,355 Gross profit 546,366 271,900 EBITDA * 649,803 273,163 Profit before tax 361,770 213,179 Profit after tax 292,073 196,755 Gross profit margin 60.03% 50.10% Net profit margin 32.09% 36.22% Extract from Statements of Financial Position Total assets 6,450,419 6,290,329 Current assets 1,234,367 884,817 Cash and bank balances 637,120 633,922 Total liabilities 3,817,261 3,884,156 Current liabilities 761,351 579,293 Loans and borrowings 3,010,158 3,393,173 Total equity 2,633,158 2,406,173 Financial Indicator Return on equity 11.09% 8.18% Current ratio 1.62 1.53 Gearing ratio 1.14 1.41 Net gearing ratio 0.90 1.15 Net debt/EBITDA ratio 3.65 10.10 Operating Result by Segment Offshore & Marine 488,605 145,344 Other operations (63,104) 16,819 Share of results of joint ventures & associates 43,809 83,330 * Earnings before interest, tax, depreciation and amortisation We are pleased that the overall financial performance for the period under review remains vigorously strong compared to the previous year despite strong headwinds in the O&G sector. For FYE2018, revenue grew significantly by 67.5% to register at RM910.16 million or RM366.90 million higher than previous financial closing of RM543.26 million. Likewise, the positive flow down effect is presented in the Group’s profit after tax which increased by 48.4% or RM95.31 million to RM292.07 million, compared to RM196.76 million in the previous financial year. The improved financial results are attributable mainly to better profit contribution on higher revenue recorded from the offshore and marine business, primarily as a result of the deployment of FPSO JAK to Ghana that started production in June 2017 and more importantly with the relentless effort by the project management team that made this possible by controlling the project cost within budget and ahead of schedule. Return on Equity Net debt/EBITDA ratio +35.6% -63.9% FYE2018: 11.09% FYE2018: 3.65 FYE2017: 8.18% FYE2017: 10.10 Overall Financial Performance Table Corporate Overview Stewardship Governance Accountability 43 Yinson Holdings Berhad Annual Report 2018