61 ANNUAL REPORT 2022 STRATEGY & OUTLOOK FINANCIAL REVIEW FYE 2022 FYE 2021 Change RM million RM million RM million % Operating Results by Segments Offshore Production and Offshore Marine 1,186 1,110 76 6.8% Renewables 34 1 33 3,300.0% Other operations (123) (183) 60 -32.8% Share of results of joint ventures and associates 7 (29) 36 -124.1% REVENUE & PROFITABILITY Group revenue The Group’s awarded lease contracts were systematically classified as finance leases in accordance with International Financial Reporting Standards (“IFRS”) for accounting purposes. The revenue generated from the conversion of VLCCs into FPSOs, which is classified as Engineering, Procurement, Construction, Installation and Commissioning (“EPCIC”) revenue, is recognised either over time based on the progress of construction or at a point in time when the asset’s rights of use are handed over to a lease client. Lease revenues and profits are recognised during the construction phase of the asset under this accounting treatment. It is important to remember that the asset generates the cash only after construction and commissioning activities have been completed, as that is the point in time the Group is entitled to start receiving the lease payments. In the case of an operating lease, lease revenues and profits are recognised during the lease period, effectively more closely tracking cash receipts. FYE 2022 FYE 2021 FYE 2020 FYE 2019 1,035 FYE 2018 910 Group Revenue (RM’ MILLION) 3,607 4,849 2,519 FYE 2022 FYE 2021 FYE 2020 FYE 2019 991 FYE 2018 880 Non-EPCIC (RM’ MILLION) 1,286 1,408 917 EPCIC (RM’ MILLION) FYE 2022 2,206 FYE 2021 3,394 FYE 2020 1,551 FINANCIAL PERFORMANCE (CONT’d.)
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