59 ANNUAL REPORT 2022 STRATEGY & OUTLOOK FINANCIAL REVIEW Commentary by Guillaume Jest, Group Chief Financial Officer It is important to note that we have significantly increased Yinson’s profitability, despite the major global economic turbulences experienced in recent years. Yinson’s business environment, as similarly faced by most players of the world economy, has been affected by high volatility and uncertainty. This situation has been caused in no small part by the Covid-19 pandemic, rising inflation, soaring energy and commodity prices, and recent geopolitical tensions, especially the war in Europe between Russia and Ukraine. We believe that Yinson’s strong fundamentals played a big part in insulating us against these external challenges, allowing us to achieve steady growth in our revenues and profitability. These fundamentals are elaborated in detail by my fellow Senior Management team in the Strategy & Outlook section of this Report. They include a robust, adaptable business model, stable source of revenue and profit generated from our FPSO operations, backed by a strong and experienced management team. Another noteworthy observation is that Yinson’s profitability has continued to increase despite our continuous investment into high capital expenditure FPSO projects and new activities in renewables and green technologies. Additionally, our headcount growth to support these activities has also been significant, with nearly 25% new employees joining our global workforce in FYE 2022. This remarkable performance is a strong indication of our ability to carefully manage costs to ensure that our growth does not dilute our profitability. We also devote great focus to our management of equity and debt funding. Yinson’s Treasury function adheres to a prudent cash management and liquid assets policy, and puts solid long-term financing plans in place in cooperation with business leaders to ensure that we meet our business requirements. This highlights our ability to adapt our business model to capitalise on opportunities and cater for our fast growth. With our tight management of our cash forecast, we believe we are in a very strong position to meet our longterm financial commitments to our financing partners. Looking back at our track record, bolstered further by our strong performance in FYE 2022, we are confident that Yinson is well poised to deliver on our growth and expansion plans despite the instability of the world economy. In FYE 2022, we are pleased to announce that Yinson had its strongest performance yet. The Group’s PAT was RM524 million, which represented about 14.5% of our revenue. This was a marked increase of 27.2% over FYE 2021’s PAT of RM412 million. Looking back over a 2-year time horizon, Yinson’s profit has more than doubled since FYE 2020, with our net profitability ratio increasing from 10.4% to 14.5% within that period.
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