Yinson Annual Report 2021

20 YINSON HOLDINGS BERHAD SECTION 01 : OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS FYE 2021 FYE 2020 Change RM million RM million RM million % Operating Results by Segment Offshore Production & Offshore Marine 1,110 519 591 113.9% Renewables 1 - 1 N/M* Other operations (183) - (183) N/M* Share of results of joint ventures & associates (29) 10 (39) -390.0% * N/M: Not meaningful Q1 FYE 2021 Q2 FYE 2021 Q3 FYE 2021 Q4 FYE 2021 Snapshot of quarterly announced results for FYE 2021 RM million RM million RM million RM million Revenue 344 996 2,262 1,247 Cost of sales 139 671 1,809 929 Gross profit 205 325 453 318 EBITDA * 236 330 336 334 Profit before tax 66 173 183 158 Profit after tax 46 127 137 102 Core profit after tax 97 168 298 172 * Earnings Before Interest, Tax, Depreciation and Amortisation CORE PROFIT AFTER TAX (RM MILLION) FYE 2020 293 735 FYE 2021 The key performance indicator of Core profit after tax ("PAT") increased significantly from RM293 million in the previous financial year to RM735 million in the current financial year. The main driving factors of this impressive growth include a full year lease contribution from FPSO Helang (which achieved first gas in December 2019), successful redeployment of FPSO Abigail-Joseph (which achieved first oil in October 2020) and progressive construction of FPSO Anna Nery. Business growth in FYE 2021 was reflected clearly through the increase in the Group's total assets and total liabilities of 24.9% and 36.9% respectively. In particular, loans and borrowings increased by 59.4% to RM6,106 million, with drawdown proceeds mainly used to fund the Group’s maiden project in Brazil, FPSO Anna Nery. It is of continued importance to take note that the Group’s total liabilities include RM328 million of deferred income (please refer to Note 36 to the Financial Statements) which is non-refundable upfront receipts related to projects. On the liquidity front, the Group’s cash and bank balances and liquid investments increased 39.9% from RM1,465 million to RM2,050 million. That said, due to the additional loans and borrowings drawdown to fund our growth, the Group’s current ratio decreased slightly from 1.45 times to 1.43 times and the other key liquidity indicator of net gearing ratio increased from 0.63 times to 1.01 times. Financial Capital, pg 82