52 YINSON HOLDINGS BERHAD STRATEGY & OUTLOOK Sustainability and the energy transition provided the biggest impetus for our most recent pivot into becoming an energy infrastructure and technology company. This pivot doesn’t mean that the FPSO business wasn’t doing well. On the contrary, FPSO business has never been better. With the Paris Agreement coming into force in November 2016, we began deepening our knowledge on sustainability and became convinced that we needed to adapt our way of doing business to proactively implement sustainability-based strategies to continue generating value for our stakeholders in the longterm. This resulted in strategic direction of growing into new businesses in renewables and green technologies in 2019 and 2020 respectively. That was just the beginning of our journey in sustainability. This year, we launched our Climate Goals Roadmap which reflects our commitment in pioneering and practicing innovation to achieve net zero carbon emissions by 2050, including the Zero Emissions FPSO concept to lower the emissions of our operating fleet, through technologies such as hydrocarbon blanketing and closed flare technologies, as well as carbon capture technologies in carbon sequestration processes. We believe that Yinson is in a leadership position to make a significant impact to the global energy landscape and environment. Embracing the energy transition, pg 43; Environmental performance, pg 101; Climate change & the energy transition, pg 132 So today, we have four business divisions whose strategies are geared towards achieving long-term sustainability, each with distinctive abilities to contribute to the energy and technology value chains. And we are gearing up for our next pivot. resilience. These relationships are key to the success of our capital raising initiatives over the years. Stakeholder engagement, pg 124; Financing & funding partners, pg 139 Our journey in the energy infrastructure business started in 2011, when we ventured out of the local logistics and trading business into the international oil & gas segment through the part acquisition of FSO PTSC Bien Dong 01 in Vietnam. This first pivot in our strategy was fueled by the desire to expand beyond our home ground and get our foot into a business with higher barriers to entry such as capital and track record requirements. Our venture into this business was well received by the market as reflected in Yinson’s market capitalisation growth, which tripled within three years. Our next major pivot came when we became a full-fledged FPSO provider through the acquisition of Fred. Olsen Production ASA in 2016, allowing us to own a platform with successful project and operation track record. With this, Yinson also became a recognised contender when participating in international FPSO bids by reputable oil companies. Having gained valuable experience through our first two production assets in Vietnam, we believed the time was right to buckle down and carve a further niche into the highly specialised area of FPSO projects and operations. Our strategy during this phase of transformation was to deliver on our commitments, build our track record, and develop our resources and knowledge for the next phase of growth. Yinson’s market capitalisation continued to soar to RM4.5 billion, making way for us to establish ourselves to become one of the largest independent FPSO leasing companies globally, able to weather through two oil crises over the last decade. Dividend Special dividend Market capitalisation Source: Bloomberg 7 16 8 18 6 14 5 12 4 10 3 8 2 6 1 4 2 0 Market Capitalisation (RM billion) Dividend (RM) FSO Bien Dong 01 FPSO Lam Son 2011 2012 2013 2014 FPSO JAK 2015 2016 2017 FPSO Helang 2018 Bhadla 1 &2 Nokh Project FPSO Abigail Joseph 2019 FPSO Anna Nery 2020 FPSO Maria Quitèria 2021 FPSO Atlanta 2022 (Feb) 0 Rights proceeds raised: RM0.09 billion Proposed Rights: RM1.1 - RM1.2 billion Rights proceeds raised: RM0.57 billion STRATEGY REVIEW 83.5X market capitalisation appreciation since 2011 FPSO Adoon FPSO Allan Petróleo Nautipa Ventured into offshore production Recognised as a full scale execution and service FPSO provider Transitioned into becoming an energy infrastructure and technology company
RkJQdWJsaXNoZXIy NDgzMzc=