34 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 In FYE 2024, we continued allocating significant capital to our two businesses that directly support the development of an economy powered by clean energy, Yinson Renewables and Yinson GreenTech, demonstrating our commitment to the energy transition. As of 31 January 2024, the cumulative capital invested into developing these two businesses since their establishment in 2019 and 2020 respectively, represented by their total asset values, amounted to RM1.9 billion, an increase of RM584 million or 43% from FYE 2023. In addition, Yinson’s Internal Carbon Pricing Policy and Framework (“ICP”) has been approved, and is set to be piloted for Yinson Production in FYE 2025. The ICP will allow us to leverage a financial approach on strategic capital allocation towards energy transition strategies, such as investing in the expansion of clean energy businesses. As a result of these efforts, we are leading the energy transition in our industry and demonstrated that we have established a solid organisational foundation that will support and future-proof our business. FINANCING OUR GROWTH In FYE 2024, the Group’s loans and borrowings increased by RM6.7 billion, or 70%, to RM16.3 billion as compared to RM9.6 billion for the last audited financial year ended 31 January 2023. As the construction of FPSO Maria Quitéria, FPSO Atlanta and FPSO Agogo are currently ongoing (with FPSO Maria Quitéria and FPSO Atlanta expected to be completed in FYE 2025), higher drawdowns of the Group’s financing facilities are required to fund the construction activities to completion. This is within the Group’s expectations and is in line with the typical nature and cash flow requirements of EPCIC projects. As we carefully manage our financing risks, we consistently meet our financial covenants and debt servicing requirements. Our strong track record in delivering FPSOs has enabled us to secure financing at more favourable terms. The Group also continues to hedge against interest rate volatility by entering into floating-to-fixed interest rate swaps for about 90% of our project financing loans. Overall, loans and borrowings at fixed (including swapped-to-fixed) rates comprise about 70% of the Group’s total loans and borrowings. This has allowed us to keep such costs at a level that is stable to deliver sustainable returns. The Group experienced an increase in finance costs by RM386 million or 67%, which was primarily driven by higher project execution requirements for the Group’s FPSOs that are currently under construction and approaching completion as discussed above. FINANCIAL PERFORMANCE FYE 2024 RM million FYE 2023 RM million Change RM million % Extract from Consolidated Income Statements Revenue 11,646 6,324 5,322 84.2% Cost of sales 8,659 4,497 4,162 92.6% Gross profit 2,987 1,827 1,160 63.5% EBITDA* 2,993 1,782 1,211 68.0% Profit before tax 1,695 855 840 98.2% Profit after tax 1,142 588 554 94.2% Core profit after tax 1,109 741 368 49.7% Gross profit margin 25.6% 28.9% -3.3% -11.4% Net profit margin 9.8% 9.3% 0.5% 5.4% Core profit margin 9.5% 11.7% -2.2% -18.8%
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