92 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 REGULUS OFFSHORE 100% 80% 60% 40% 20% 0% Yinson Hermes PTSC Huong Giang Yinson Perwira PTSC Lam Kinh 88% 100% 100% 75% 100% 100% 76.2% 71.2% FYE 2022 FYE 2023 REGULUS OFFSHORE FLEET UTILISATION RATES Operating environment Malaysia’s oil & gas industry continues to evolve in line with its aspiration to achieve net zero by 2050, and this has spurred the local energy supply chain to align its strategies accordingly. Yinson Group has also answered the call to move the industry in this direction with its Climate Goals to achieve carbon neutrality by 2030 and net zero by 2050. Accordingly, Regulus Offshore (“RO”) is actively improving its ESG practices through enhancements in our environmental and social impact reporting, improved safety and environmental practices and exploring opportunities for marine electrification with YGT. There are several factors that are contributing to a healthy and stable market for OSVs in the coming years. These include an anticipated increase in drilling and platform maintenance activities, as forecast by Malaysian Petroleum Management’s 2023 outlook, and growth in offshore wind installation projects worldwide. In addition, the pandemic and economic volatility over the past few years have caused a general slowdown in offshore activities, leading to some key players reducing their exposure in the segment. This has led to a shortage of OSV supply in the market, heightening demand for our services. OUTLOOK We continue to enjoy a stable operating environment in Malaysia, where all our assets have secured contracts in the near term and where prospects continue to grow. Malaysia is a mature market for oil & gas, with the development of some newly discovered resources contributing further to its longevity. With our strong sustainability leadership position, plus proven track record in safety and operations, RO is well positioned to capture such market opportunities in the offshore industry in the coming days. As an organisation that was founded, and is currently headquartered, in Malaysia, Yinson is committed to contributing back to this country. Thus, we will continue to do our part to fully support the country’s decarbonisation goals towards a more sustainable future for everyone. These robust utilisation rates are a reflection of our long-standing relationships with our clients and our good track record of safe and efficient operations. We have good visibility on the future charter of our fleet, with many contracts already secured for 2023 and beyond. Yinson Hermes was able to secure contracts with two clients that will enable it to work continuously throughout 2023, while Yinson Perwira and PTSC Lam Kinh’s contracts are secured until 2024 and 2027 respectively.
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