Yinson Annual Report 2020

132 Yinson Holdings Berhad SECTION 5 STRATEGIC REVIEW The key performance indicator of Core Profit After Tax (“Core PAT”) for 12 months remained stable at RM292.85 million compared to the previous financial year. Notably, Q4 FYE 2020 Reported Core PAT of RM101.98 million has been very encouraging with a significant increase of 58.85% compared to Q3 after FPSO Helang started contributing to the Group’s results. Please refer to the table on the previous page for a snapshot of announced quarterly results for FYE 2020. Financial position for FYE 2020 is a reflection of the Group’s undertaking of two FPSO projects, FPSO Helang and FPSO Abigail-Joseph, and preparation for its maiden Brazil FPSO project, FPSO Anna Nery. These developments increased the Group’s total liabilities by 28.75% to RM5,741.54 million, mainly attributed Management Discussion & Analysis to a higher loans and borrowings position of RM680.67 million or 21.61% against the previous financial year through various financing facilities drawn-down. It is, however, important to take note that included there-in total liabilities is RM765.74 million of deferred income (in Note 36 to the Financial Statements) which represent non-refundable upfront receipts relating to projects. Concurrently, we see total assets of the Group increasing by 17.72% to RM9,515.41 million due to projects’ activities undertaken. From the liquidity perspective, the Group’s liquidity indicator of Current Ratio has strengthened to 1.45 times from 1.40 times, primarily due to the recognition of finance lease receivables related to FPSO Helang after lease commencement. The other key liquidity indicator of Net Gearing Ratio weakened to 0.63 times from 0.51 times mainly attributed to the earlier mentioned higher loans and borrowings position. Yinson’s five core pillars The illustration below outlines Yinson’s business framework and strategy through the five core pillars of our business, namely business development, risk, compliance and legal, financing, project execution and operations. The constant communication and collaboration amongst the pillars is key to the success of the Group. The pillars sit on a foundation that consists of all the business structures and teams that support them. Above the structure are our Vision, Mission and Core Values, which serve as a guidance for decisions made at every level. Five core pillars of our business Business Development Winning projects risk, compliance and legal Minimising risk, enhancing sustainability project execution On time and on budget delivery financing Sourcing cost effective and innovative funding for projects operations Safe operations Fleet uptime Supporting foundations – Business units Cemented together by strong communications Vision To be a global energy solutions provider that is known for being reliable, open, adaptable, decisive and sustainable Mission Passionately delivering powerful solutions CORE VALUES RELIABLE | OPEN | ADAPTABLE | DECISIVE | SUSTAINABLE