Yinson Annual Report 2019

2018 started out with much promise for the industry, with oil prices surging past USD70 per barrel in April for the first time in three years. The relatively stable oil prices saw continued growth of project awards in the FPSOmarket, with 10 FPSO contracts awarded worldwide in 2018, compared to five in 2017 and three in 2016. Company Limited (“FIRST E&P”) for use at the Anyala andMadu Fields in Nigeria. In a strategic move that has enabled us to bring forward the project schedule and deliver a more cost- effective solution for our client, Yinson will be redeploying our existing vessel, FPSOAllan, to this field. FPSOAllan’s charter officially ceased on 29 January 2019 after nearly 10 productive years out on the Olowi Field in Gabon, making it a strong candidate for redeployment. We are confident of meeting the expectations of our project partners and local authorities in supporting the development of the Nigerian oil and gas industry. The vessel will be renamed FPSO Abigail-Joseph, and is expected to commence operations by Q4 2019. During the financial year, we continued to build strong partnerships. In April 2018, we entered into a 10-year binding MoU with Sumitomo Corporation (“Sumitomo”) for future collaborations in the FPSO and FSO business. This followed on with an agreement signed in February 2019 for both parties to participate in a joint venture for the Marlim Field in Brazil in the event of a successful bid. Earlier in June 2018, we successfully completed the sale of 26% equity interest in a subsidiary that owns FPSO John Agyekum Kufuor (“FPSO JAK”) to a Japanese consortium comprising of Sumitomo, Kawasaki Kisen Kaisha Ltd, JGC Corporation and Development Bank of Japan Inc. These strong partnerships are an indication of the confidence our partners have in our ability to deliver on our promises and manage risks, and has enhanced our ability to bid in new regions and for larger projects. The first quarter of FYE 2019 saw us receiving full repayment for the termination of FPSO PTSC Lam Son (“FPSO Lam Son”) in Vietnam, with the fee received being in excess of the outstanding project loan. We subsequently commenced an interim bareboat charter for the same vessel. This positive outcome to an overall uncertain situation is a testament to the hard work our team has put into developing robust contractual terms and also our commitment to practicing disciplined business and financial management. These practises form part of the strategies entrenched in our business model, which we believe will continue to put Yinson ahead in this competitive industry. We are fully conscious of how important it is to continue adhering closely to our business strategy, remaining prudent in our operations and financial management in view of our long term goals. This, along with our emphasis on building a strong corporate culture in our employees across the globe, is essential to our ability to keep delivering on our promises and maintaining our assets’ exceptional uptime records. Throughout the period of volatility affecting the industry in the preceding years, the Group took decisive actions to improve our financial strength, forge new alliances and strengthen our team. Armed with the solid foundation built by these efforts, Yinson actively bid in newmarkets in 2018, expanding our presence to South America and our operations to our beloved home country, Malaysia. Business highlights A great highlight in 2018 for Yinson is our entry into the Malaysian oil and gas market, which we concluded through a novation arrangement with JX Nippon Oil & Gas Exploration Corporation (“JX Nippon”) for the provision of EPCIC and leasing of FPSO services to the Layang Field in Sarawak in June. This was followed by the setting up of our Miri office in December 2018 and the award for the vessel’s operations and maintenance eight months later. We named the vessel ‘Helang’, the Malay word for ‘eagle’, to mark this milestone. We are indeed excited to be contributing back to the energy infrastructure of the country where Yinson was founded and is currently headquartered. The vessel is currently in its second phase of construction and is on schedule for deployment in Q4 2019. Yinson is also excited to be awarded contracts for the charter, operations and maintenance of an FPSO by First Exploration & PetroleumDevelopment 5 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting