29 LEADERSHIP MESSAGES CHAIRMAN STATEMENT NAVIGATING A YEAR OF RECOVERY 2022 started with the world breaking free from the chains of the pandemic as countries lifted restrictions, embraced endemicity and rebuilt economies. The greater economic activity lifted consumer demand, created supply shortages and drove prices of food, energy and commodities higher, complicated by supply chain disruptions that were still recovering from the effects of the pandemic. The onset of the Russia-Ukraine conflict in February 2022 exacerbated the situation, pushing prices of commodities, energy and food even higher. Oil prices hit a high of USD127 per barrel in March 2022 and remained elevated for the rest of the year. As a result, inflation rose to multi-year highs in many economies, leading to central banks rapidly tightening monetary policy to subdue inflationary pressures. The higher inflation weighed on economic growth prospects, with the International Monetary Fund forecasting global growth of 3.4% in 2022, compared to the 6.0% achieved in 2021. Amid this backdrop, however, global demand for clean, affordable and stable energy continues to grow, which has helped drive expansion in all our business units. The Floating, Production, Storage and Offloading (“FPSO”) market, for example, continues to see strong demand for contractors like Yinson, who have an edge in emissions reduction technologies and a solid track record of on-time delivery and safety and operational performance. The broader effect of elevated energy prices is the acceleration of the energy transition, as more investments pour into developing renewable and alternative sources of energy. This has supported the progress of our renewables pipeline in our core markets of Latin America, the Asia Pacific and Europe. We are pleased that in the financial year under review, we tripled the capacity of our projects under construction and in development. Concurrently, our Green Technologies business charted remarkable growth in the area of electrification as the automotive and marine transport industries decarbonised aggressively. KEY MILESTONES In FYE 2023, we successfully secured financial resources to fund our FPSO projects under construction. In June 2022, our largest rights issue to-date amounted to RM1.19 billion and was oversubscribed by 22.31%. The proceeds from the rights issue fuelled our Group’s growth and expansion plans in the FPSO business and improved our net gearing and financial position. Additionally, in October 2022, we obtained a sixyear USD720 million syndicated loan financing facility from a consortium of local and international banks to finance the ongoing construction of FPSO Maria Quitéria. Then in late 2022, we issued RM360 million of Islamic notes under our Subordinated Perpetual Islamic Notes Programme to refinance existing perpetual bonds. In going to the market thrice during the year, we were encouraged by the strong reception received, despite tighter market liquidity in a rising interest rate environment. This was a clear vote of confidence in Yinson’s abilities to deliver value to our stakeholders and a testament to the effectiveness of our business strategies. STRENGTHENING OUR LEADERSHIP I am very pleased to welcome Puan Fariza binti Ali @ Taib as a Non-Independent Non-Executive Director, effective 31 May 2023. Puan Fariza is the Head of the Real Estate Investment Market Department at the Employees Provident Fund (“EPF”), and previously held the roles of Head of Fixed Income Portfolio and Head of External Fund Management. Her experience in the areas of portfolio management investments and capital markets will prove invaluable to the Group as we navigate the transforming economic landscape and continue to drive growth across our business units. Puan Fariza replaces Puan Rohaya binti Mohammad Yusof, who stepped down from the Board after faithfully serving as Non-Independent Non-Executive Director for over three years. Puan Rohaya’s extensive experience in finance, investments, policy and governance, has greatly strengthened our Board, and her valuable insights have guided us through one of the most pivotal periods of Yinson’s growth. We sincerely thank Puan Rohaya for her contribution and wish her all the best in all her future endeavours. The Group continued to evolve internally to support our business strategies in line with our rapid growth. From late 2022, we strengthened the leadership and key functions of our business units towards facilitating greater decision-making autonomy. This, plus the reorganisation of business activities into their respective business units, will result in stronger governance and decision-making according to the unique needs of each of our businesses and ensure that Yinson can continue building and growing in a sustainable manner. We also made changes at the Senior Management level with the position of the Group Chief Strategy Officer (“Group CSO”) being succeeded by Mr Chai Jia Jun, who was the Director of the Group CEO Office. Mr Daniel Bong, who previously held the position of Group CSO and Head of Group Corporate Advisory, has been appointed as the Chief Executive Officer (“CEO”) of Farosson, our newest business unit headquartered in Singapore. At Farosson, Daniel will spearhead Yinson’s foray into advisory solutions, investments and asset management with a focus on capital recycling activities and sustainable infrastructure investing.
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