33 LEADERSHIP MESSAGES GROUP CEO REVIEW OVERVIEW The energy sector is undergoing a significant transformation as governments, corporations and communities strive to cope with the global energy crisis. The crisis is multi-dimensional, with the trilemma of energy security, sustainability and affordability making it increasingly clear that we need to diversify away from a single energy commodity and change the very nature of the energy system. It is equally important to bear in mind that this change needs to happen while safeguarding energy security and affordability worldwide. According to BloombergNEF, investments in renewable energy amounted to USD495 billion in 2022, making up the largest portion of global energy transition investment (“ETI”) last year. And this growth is expected to continue. This anticipated growth is supported by various factors including the introduction of more supportive policies and stronger demand for renewables – accelerated by the ongoing energy crisis triggered by the Russia-Ukraine conflict and global warming. 2022 was certainly eventful for the oil & gas segment as geopolitical sanctions, paired with years of underinvestment, brought supply disruptions which sent brent crude oil prices soaring to USD120 per barrel. The price has since fallen to USD85 per barrel as of early 2023 due to looming uncertainties stemming from fears of a global recession, which may impede growth of the segment moving forward. As always, we will execute our business strategies with strong capital discipline to manage exposure risk and generate stable recurring cash flows. In the year under review, we continued to push forward in our offshore production, renewables and green technologies business units through the securing and delivery of projects as well as establishing strategic partnerships to gain stronger footholds in these spaces. In our well-established FPSO business, we are pleased to report that we completed construction of FPSO Anna Nery, with its sail away in July 2022 and first oil at the Petrobras-operated Marlim field on 7 May 2023. The completion of the FPSO Anna Nery project, which commenced in 2019, was particularly significant for Yinson as it was undertaken and completed satisfactorily despite the challenges brought about by the pandemic. Meanwhile, work on FPSO Maria Quitéria and FPSO Atlanta is tracking according to schedule, with construction for both assets expected to be completed in 2024. Post financial year-end, the Group secured a USD5.3 billion firm contract for the provision, operation and maintenance of an FPSO for the Agogo Integrated West Hub Development Project in Angola. This signals our first foray into Angola and our eighth FPSO project in the West African region. YR, which is now about three years old, further grew and developed our global pipeline of renewable energy projects which now stands at over 5 GW. We also moved into the pre-construction phase for the two wind energy projects we acquired in Brazil in 2022, bringing the total capacity of projects under construction/pre-construction and operational to 951 MW.
RkJQdWJsaXNoZXIy NDgzMzc=