21 LEADERSHIP MESSAGES | CHAIRMAN STATEMENT A YEAR OF EXPANSION We are pleased to note accelerated progress overall in recent years towards a clean energy future. However, we acknowledge that the transition has not been straightforward. Geopolitical instability, technological limitations, and capital and infrastructure constraints have affected the speed and pace of the transition as the world struggles to balance the need for change with energy security concerns. Failing to synchronise the reduction in fossil fuel production with consumption diminishes the world’s ability to meet net zero targets, potentially triggering price spikes in a tight market. In essence, the transition cannot take place if it is not inclusive. This unique interplay of macroeonomic factors has helped drive expansion in all our businesses in the reporting period, allowing us to make great strides towards fulfilling our purpose of providing sustainable energy infrastructure. Yinson Production’s services continue to be in strong demand, as the market is looking for providers that have an edge in emissions reduction technologies and a solid track record of on-time delivery and safety and operational performance. Concurrently, investments are being routed into developing renewable and alternative sources of energy, which has supported the progress of Yinson Renewables. Our Nokh Solar Park was commissioned in November 2023, and we have also commenced construction of our first Peru solar project, Matarani. Yinson GreenTech’s growth capitalises on the megatrend of electrification. In line with this megatrend, we have developed a suite of integrated services which has received enthusiastic take-up from parties eager to decarbonise. DELIVERING SOLID FINANCIAL RESULTS In FYE 2024, the Group delivered a strong set of financial results, recording higher revenue of RM11.6 billion (FYE 2023: RM6.3 billion) mainly driven by the commencement of Engineering, Procurement, Construction, Installation and Commissioning (“EPCIC”) business activities for FPSO Agogo and commencement of operations for FPSO Anna Nery. Correspondingly, profit after tax (“PAT”) was RM1.1 billion, an increase of 94% compared to FYE 2023. We continued to receive strong support from the investor community and our shareholders. On 29 March 2024, we completed an accelerated book-building exercise to place out 120 million new ordinary shares to a selected group of institutional investors. Yinson raised RM283.2 million from the private placement, which will primarily be used to expand our renewables and green technologies businesses. REWARDING OUR SHAREHOLDERS We have distributed RM58 million in dividends for FYE 2024, representing 2.0 sen per ordinary share declared for FYE 2024. Including the final dividend of 1.0 sen per ordinary share in respect of FYE 2023 paid in the current financial year, the total distribution to shareholders in FYE 2024 amounted to RM87 million. In addition, we have recommended a final dividend of 1.0 sen per ordinary share for FYE 2024 for shareholders’ approval at the forthcoming 31st Annual General Meeting (“AGM”). On 22 March 2024, we announced a proposal to undertake the establishment of a dividend reinvestment plan (“DRP”), which provides shareholders the option to reinvest cash dividends in new Yinson shares instead of receiving it in cash. The final dividend for FYE 2024 will be part of this DRP, subject to shareholders’ approval at the upcoming AGM. If approved by shareholders in the forthcoming AGM, the DRP will allow shareholders to enhance and maximise the value of their shareholdings by investing in new shares that may be issued at a discount to market prices, and are free from brokerage fees and other transactional costs. Concurrently, it could provide the Group with the flexibility to strengthen our capital position to fund our working capital requirements. A FIRM COMMITMENT TO GOOD CORPORATE GOVERNANCE We took several important steps to enhance our governance structure throughout the year, in order to ensure that our business decisions are underpinned by a robust governance process. Following the greater autonomy of decision-making delegated to our respective businesses, the Board established Advisory Boards for them – Yinson Production, Yinson GreenTech and Yinson Renewables – in September 2023. The Advisory Boards, which convene on a quarterly basis, provide effective oversight of the respective business models and function as a forum for robust debate and in-depth deliberations on key strategic, financial and operational issues. Also, to further institutionalise and reinforce the management and oversight of sustainability at management level, our Sustainability Committee has been integrated into the Management Committee, which is now renamed as the Management & Sustainability Committee (“MSC”). This follows the steps taken at Board-level in the previous reporting period, where our Board Charter was updated to recognise the renaming of the Board Risk Management Committee to the Board Risk & Sustainability Committee.
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