Yinson Annual Report 2020

140 Yinson Holdings Berhad SECTION 5 STRATEGIC REVIEW Management Discussion & Analysis has fallen below the cost of energy produced by fossil-based resources, with India as a good example. With increasing power demand in many developing economies, renewable energy has become the option of choice for new expansion. Yinson intends to participate in this growth and to facilitate the energy transition globally. In the near term, the renewables team is focused on establishing a portfolio of operating assets together with new greenfield development opportunities in selected regions. This portfolio will provide a core platform for further growth and development of a strong project and operating culture. In addition, Yinson will deploy its expertise in debt financing and partnering with equity investors to efficiently recycle capital, thereby delivering increased value to our stakeholders. Yinson closed a transaction at the end of March 2020 to acquire a 37.5% in Rising Sun Energy Private Limited (“RSE”), an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India. This acquisition marks the start of Yinson’s move into renewables and is the first renewable asset in Yinson’s portfolio. We have successfully built a global FPSO business leveraging the platform we acquired through the acquisition of Fred. Olsen Production in 2014. We aim to repeat the same success for our renewables business. situation for the entire industry, and no less for Yinson – a relative newcomer to the FPSO industry at that time. We weathered through the volatility by adhering closely to our business principles. We focused on delivering our project at hand, FPSO JAK, and did so three months ahead of schedule. We built a lean, but very experienced project management team, while co-sourcing where it made the most sense. We strengthened our operations team, delivering industry-leading uptime and safety records. We practised disciplined business and financial management. We emerged stronger after that volatile period, determined to learn from our experiences and improve. In the years following the downturn, we continued aligning everything we did towards bringing greater value to all our stakeholders, because we believe that taking these steps puts us on the surest path to ensuring the long-term sustainability of our business. We invested in our people and in becoming an employer of choice. We saw the importance of being a values-based organisation, making our Vision, Mission and Core Values an integral part of our employees’ daily decision-making process. We continued to operate prudently, improving our financial strength and bolstering our balance sheet. We invested in our systems, processes and building a capable support team and infrastructure to our five core pillars. All of these measures were taken with a single aim in mind – to ensure the sustainability of the business so we can continue to bring value to all our stakeholders for many years to come. Indeed, we hope and believe that everything we have invested into creating a sustainable business will see us through these current trying times. Last financial year, we took our first step towards producing an Integrated Annual Report by introducing a more robust Sustainability Statement. With this year’s report, we progress further on our Integrated Reporting Closing remarks Looking back, the oil price plunge from 2014 to 2016 was a trying Renewables assets (pg 21), Renewables (pg 68)