23 INTEGRATED ANNUAL REPORT 2025 LEADERSHIP MESSAGES | CHAIRMAN STATEMENT THE RIGHT STRUCTURE FOR SUSTAINED GROWTH Our focus in 2025 is to review and consolidate our operations. We have conducted a thorough review of our business to identify areas which are core to us, synergies between the various business areas, and efficiencies that can be gained across our organisation. We are actively putting the right structures and resources in place to ensure we are well positioned for the next phase of growth. We completed the divestment of our offshore marine business, Regulus Offshore, to Lianson Fleet Group (“LFG”) on 31 January 2025, aligning with our strategic direction to focus on our FPSO and energy transition businesses. Having unlocked value from this profitable legacy business, we will continue to participate in the future growth of LFG through our holding of a minority stake and the rights to a board seat. Another decision made following the strategic review of our core areas was the transition of Farosson out of Yinson, effective on 1 May 2025. Daniel Bong, the CEO of Farosson, had decided to continue leading Farosson independently, which also means he has stepped down as Principal Officer of the Group. Yinson remains supportive of Farosson’s continued success, and we look forward to maintaining a strong working relationship where opportunities align. We thank Daniel for 14 years of dedicated service as he has been instrumental in Yinson’s growth. Our businesses, under the leadership of their respective Senior Leadership Teams and Advisory Boards, have also taken steps to review and consolidate their businesses, which is explained in further detail in our Business Review. Business Review, pg 58 to 74. GOVERNANCE UPDATES We have taken proactive measures to strengthen our governance framework to ensure robust risk management and operational resilience amidst a rapidly evolving global landscape. Key measures taken during FY2025 include: • Updated our Enterprise Risk Management (“ERM”) framework to improve its relevance and effectiveness in alignment with our decentralised business structure. • Integrated our enterprise and climate risk profiles into a single ERM framework. • Broadened our risk reporting beyond our key risks. • Launched our Business Continuity Management (“BCM”) Policy Statement and Framework and facilitated the development of Business Continuity Plans (“BCP”) and Crisis Management Plan (“CMP”) at Group-level. • Obtained recertification of ISO 37001 Anti-Bribery Management Systems by Bureau Veritas, which we have maintained since 2021. The Group’s key profitability benchmark indicator, IFRS EBITDA, was RM3.2 billion in FY2025 – 8% higher than the previous financial year and 320% higher compared to FY2020. This is our best performance yet. REWARDING OUR SHAREHOLDERS We took significant steps to enhance shareholder value, rewarding our shareholders for their continued support during our high growth and delivery phases. The Dividend Reinvestment Plan (“DRP”) was implemented in July 2024 and applied to the Group’s final dividend for the financial year ended 31 January 2025, as well as the subsequent three quarterly interim single-tier dividends of 1 sen per ordinary share declared by the Board. The DRP allows shareholders to reinvest their dividends into additional shares, further aligning their interests with the long-term growth of the company. The DRP met with positive response from shareholders. Approximately 77% of the FY2024 final dividend and 33% of the interim dividends declared for FY2025 were reinvested, allowing Yinson to retain RM52 million to strengthen our balance sheet to support our growth and expansion plans. In total, we have declared interim dividends of 3 sen for FY2025, representing a total payout of RM89 million. We have also declared a final dividend of 1 sen per ordinary share for FY2025. We continued rolling out our share buy-back programme, aimed at increasing shareholder wealth and optimising capital deployment. During the year, we acquired 155,312,200 shares at an average price of RM2.53 per share, which resulted in a capital return of RM392 million to our shareholders for FY2025. FINANCIAL RESULTS IN A YEAR OF TRANSITION FY2025 was a year of transition for the Group from a CAPEX-intensive Engineering, Procurement, Construction, Installation and Commissioning (“EPCIC”) phase to an operational phase, with steady cash inflows over the next 20 to 25 years as our remaining projects under construction are progressively completed. This is reflected in the Group’s financial results for the year. The Group recorded lower revenue of RM7.6 billion in FY2025 (FY2024: RM11.6 billion), primarily due to lower contribution from EPCIC activities. This was partially offset by the commencement of operations for FPSO Maria Quitéria and FPSO Atlanta, as well as the lease extension for FPSO Abigail-Joseph. Nevertheless, the Group recorded higher PATAMI in FY2025 of RM1.2 billion, primarily due to reversals of tax provisions previously recognised in prior years and recognition of deferred tax assets on unutilised interest deductions arising from a change in tax basis for Offshore Production operations in the Netherlands. Statement on Risk Management & Internal Control, pg 138; Corporate Governance Overview Statement, pg 121. Unlocking shareholder value, pg 27.
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