Yinson Annual Report 2019

Yinson continued to deliver stable profit in FYE 2019 with Profit After Tax (“PAT”) of RM264.38 million reported, and Revenue registering at RM1,034.90million. Revenue grew by 13.7%, primarily due to the effect of a full year’s contribution from our largest asset, FPSO John AgyekumKufuor (“FPSO JAK”). However, PAT was lower by RM27.69 million, or 9.5%, due to impairments made and a deteriorated share of results in joint ventures on earning at lower charter rates. For the past three financial years, our results have consecutively been impacted by impairments made to our Offshore Support Vessel (“OSV”) assets, which have experienced a suppression of market supply conditions due to an oversupply of assets and a slowdown of upstream activities. If the impairment made to investments in joint ventures and property, plant & equipment were to be excluded, Yinson’s PAT for FYE 2019 would instead be RM310.30million, compared to RM324.87 million in FYE 2018. FYE 2019 witnessed growth in business activities where new borrowings were drawn down to support a new home front contract, concurrently strengthening the cash reserve necessary for potential regional expansion. Our cash and bank balances nearly doubled fromRM637.12 million to RM1,217.28 million after the completion of a 26% equity interest sale in a subsidiary that owns FPSO JAK and a successful issuance of RM950.00 million equity feature-like Islamic bond via a Sukuk Mudharabah Programme, whereas, loans and borrowings increased marginally to RM3,149.73 million fromRM3,010.16 million. This series of financing activities saw the Group’s liquidity indicator of Current Ratio weaken from 1.62 times to 1.40 times, primarily due to the recognition of a put option liability arising from the 26% equity interest sale in a subsidiary. Nevertheless, the other key liquidity indicator of Net Debt Equity Ratio was enhanced from 0.90 times to 0.53 times, aided by strengthening of the Group’s Total Equity of RM3.62 billion fromRM2.63 billion in the previous financial year. The Management also analyses the financial performance of the Group by specifically isolating income or expenses which are non-core in nature to our operating activities as depicted in the pie chart on page 21. The key core performance indicator of Core Profit After Tax (“Core PAT”) is reported at RM295.81 million as opposed to RM345.76 million previously. 31 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting