68 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 VALUE CREATION MODEL YP processes oil & gas from seabeds for energy generation and manufacturing CLIENTS AND NATURE OF RELATIONSHIP Charterers in the oil & gas industry, typically oil majors or national oil companies. We maintain longterm relationships with a small client base, with the quality of the relationship dependent on our operational service achievements. REVENUE MODEL Fixed, daily hire rate for the duration of the contract, with incentives for good performance. CLIENT VALUE PROPOSITION Provision of processing, storing and offloading of crude oil and gas from subsea reservoirs through the design, construction, leasing and operation of production assets for the offshore oil & gas industry. KEY COSTS Asset construction and conversion, salaries, interest payments, asset operations and maintenance, insurance. KEY ACTIVITIES • Securing quality projects. • Delivering projects on time and on budget. • Delivering industryleading safety and operations performance. KEY PARTNERSHIPS Ship builders, bankers and lenders, investors, major subcontractors. YP YR develops, builds and operates renewable generation facilities to deliver and sell energy CLIENTS AND NATURE OF RELATIONSHIP Primarily governmentowned or public listed power utilities and industrial/commercial customers. We maintain longterm relationships with an industrial and public client base, with the quality of the relationship dependent on our reliable delivery of contracted power. REVENUE MODEL Recurring stable revenue once operational and power sales start. CLIENT VALUE PROPOSITION Provision of stable and reliable power generated from renewables assets to the relevant power grid. KEY COSTS Asset development and construction, salaries, local partnerships, interest payments, asset operations and maintenance. KEY ACTIVITIES We participate in the full renewables value chain: • Finding, evaluating and securing sites. • Designing and developing assets, including securing grid applications, power sales and financing. • Carrying out preconstruction and construction work. • Owning and operating the asset. KEY PARTNERSHIPS Local & state governments, local development partners, contractors & suppliers, local regulators, bankers & lenders. YR
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