42 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 FYE 2024 (4,451) 2023 (2,484) 2022 (1,833) 2021 (1,373) 2020 473 EPCIC (RM million) FYE 2024 1,618 2023 1,259 2022 846 2021 598 2020 445 FPSO Operations and Others (Non-EPCIC) (RM million) FYE 2024 (2,833) 2023 (1,225) 2022 (987) 2021 (775) 2020 918 Net Cash Flows (Used in)/Generated from Operating Activities (RM million) Our objective is to maintain an adequate cash balance to cover our working capital and meet our financial commitments. We place continuous focus on both improving our free cash flow position and increasing our long-term borrowings to finance our future growth. We are committed to maintaining this prudent and forward-looking approach, as it has been a crucial strategy for the achievement of our success thus far, and we believe it will continue to safeguard the growth plans that we have ahead. The Group’s cash and bank balances and liquid investments increased by 85% from RM1.7 billion in FYE 2023 to RM3.1 billion in FYE 2024. This was mainly due to the higher drawdowns of the Group’s financing facilities to fund the project expenditure for EPCIC business activities and construction of the Nokh Solar Park to build our portfolio of assets in the current financial year. Included within the Group’s cash and bank balances and liquid investments of RM3.1 billion are bank balances and deposits of RM1.4 billion which are pledged to banks or lenders and can only be used for servicing of debts or the payment of suppliers relating to the construction of certain FPSO projects. The remaining balance of RM1.7 billion represents Yinson’s free and available cash position, which provides flexibility for expansion and adequate buffer to meet any unforeseen cash requirements. Free and available cash is derived through cash flows from operations, raising of financial capital and drawdown of loans and borrowings pending deployment for projects. It is important to note that the cash flows generated from our operational assets have been extremely stable in recent years. CASH FLOWS FROM OPERATING ACTIVITIES EPCIC cash flows During the FPSO conversion period prior to lease commencement, EPCIC business activities do not generate cash for the Group, except in instances where our clients provide advanced funding for the FPSO conversion or where there are normal timing differences arising from payments to our vendors. In FYE 2024, the EPCIC net operating cash outflow primarily represents our continued investment into the conversion of FPSO Anna Nery, FPSO Maria Quitéria, FPSO Atlanta and FPSO Agogo, where the costs incurred are in line with our expectations. Our investment into the projects during the conversion phase will be recovered through the bareboat charter payments received during the operations period. Non-EPCIC cash flows Yinson’s order book represents RM110.6 billion for the next 25 years. This provides a stable revenue outlook for the foreseeable future, giving us confidence that we will be able to comfortably meet our operational needs. The Group’s business model of earning stable recurring income from asset-leasing contracts is evidenced by the steady growth of our non-EPCIC activities’ cash flows from operations over the past years. In FYE 2024, the net cash flows generated from operating activities for non-EPCIC activities was RM1.6 billion, a 29% increase from the previous year. Looking back over a three year time horizon, Yinson’s operating cash flows from non-EPCIC activities have more than doubled since FYE 2021.
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