34 YINSON HOLDINGS BERHAD LEADERSHIP MESSAGES EPCIC (RM million) FY2025 4,075 FY2024 8,794 FY2023 4,557 FY2022 2,206 FY2021 3,394 FPSO Operations (RM million) 3,262 2,705 1,633 1,286 1,408 FY2025 FY2024 FY2023 FY2022 FY2021 The Group’s lease contracts are classified as finance leases in accordance with IFRS for accounting purposes. Revenue generated from the conversion of very large crude carriers (“VLCCs“) into FPSOs, classified as EPCIC revenue, is recognised either over time (based on the progress of construction) or at the point in time when the asset’s rights of use are transferred to a lease client. Under this accounting treatment, EPCIC revenues and profits are recognised during the construction phase of the asset. For most FPSO contracts, cash flows only begin after construction and commissioning is completed, as that is the point when the Group becomes entitled to start receiving the lease payments. Some contracts include advance payments from clients, but these are limited to specific FPSO charter contracts. The lease classification and timing of EPCIC revenue recognition (where relevant) for the Group’s offshore assets which contributed to the Group’s results in FY2025 are set out below. Vessel Equity ownership Accounting classification EPCIC recognition* Timing of EPCIC recognition* Owned by the Group FPSO John Agyekum Kufuor 74% Operating lease No FPSO Helang 100% Finance lease Yes Point in time (Q4 FY2020) FPSO Abigail-Joseph 100% Finance lease Yes Point in time (Q3 FY2021) FPSO Maria Quitéria 100% Finance lease Yes Over time FPSO Atlanta 100% Service contract under IFRS 15 Yes Over time Agogo FPSO 100% Finance lease Yes Over time Owned through joint venture arrangements FPSO PTSC Lam Son 49% Operating lease No FSO PTSC Bien Dong 01 49% Operating lease No FSO Lac Da Vang 49% Finance lease Yes Over time FPSO Anna Nery 63.2% Finance lease Yes Over time * Refer to the Group’s accounting policy for EPCIC revenue recognition in Note 2.6(i) to the Financial Statements. The Group’s revenue decreased by 35% in FY2025 compared to FY2024, from RM11.6 billion to RM7.6 billion. This decrease was primarily driven by lower contribution from EPCIC activities, reflecting construction progress: FPSO Maria Quitéria and FPSO Atlanta achieved first oil on 15 October 2024 and 31 December 2024 respectively, while the Agogo FPSO is nearing completion. The absence of the one-off effect from the exercise of the call option for the acquisition of AFPS B.V., which was recognised in FY2024, further impacted revenue.
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