64 YINSON HOLDINGS BERHAD STRATEGY & OUTLOOK EPCIC revenue & profitability FPSO Anna Nery is the only EPCIC project undertaken by the Group in FYE 2022. The ongoing FPSO Anna Nery project contains an EPCIC component where such revenue and profits are recognised over time, based on the progress of construction until Q1 2023. EPCIC PROFITABILITY In line with the progress of construction in the current financial year, the Group experienced a lower contribution from EPCIC business activities related to FPSO Anna Nery in FYE 2022. It is indeed noteworthy that with our team’s hard work and adaptability, as well as the close working relationships with our clients, vendors and shipyards, we were able to mitigate the additional risks brought on by Covid-19, which is still causing significant challenges in China. Even with the pandemic, our progress on the project remains on schedule as planned. Moreover, the recent inflation spike has not affected our costs, thanks to a strong project management team and effective cooperation with the Finance team. The PAT margin for EPCIC activities decreased as a result of higher finance costs, while the EBITDA margin improved on the back of more effective project cost management and forecasting. Non-EPCIC revenue & profitability Non-EPCIC business activities represent the Group’s Offshore Production operating activities, comprising the leasing of vessels and marine-related services. These are areas in which the Group has extensive experience and a strong track record. The Group has five operating FPSOs and one operating FSO on charter lease as at FYE 2022. FYE 2022 witnessed a full year’s revenue contribution from FPSO Abigail-Joseph, which partially offset the effect of lower contributions from the charter of VLCC tankers as the remaining tanker was deployed to a project secured in the current financial year. The first full year of operations for FPSO Abigail-Joseph generated profitability and cash flows for the Group, which met our expectations for the FPSO in the current financial year. FINANCIAL REVIEW PAT (RM’ MILLION) FYE 2022 167 FYE 2021 302 FYE 2020 7 FYE 2022 FYE 2021 FYE 2020 PAT Margin (%) 7.6 8.9 0.5 EBITDA (RM’ MILLION) FYE 2022 410 FYE 2021 468 FYE 2020 7 FYE 2022 FYE 2021 FYE 2020 EBITDA Margin (%) 18.6 13.8 0.5
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