38 YINSON HOLDINGS BERHAD LEADERSHIP MESSAGES EPCIC cash flows from operating activities During the conversion period prior to lease commencement, EPCIC business activities do not generate cash for the Group, except when our clients provide advance payments for the FPSO conversion or when timing differences arise in payments to vendors. In FY2025, the EPCIC net operating cash outflow primarily represents our continued investment into the conversion of FPSO Maria Quitéria, FPSO Atlanta and Agogo FPSO, with costs incurred aligning with our expectations. These investments will be recovered through the bareboat charter payments received during the operations phase. Non-EPCIC cash flows from operating activities Yinson’s order book stands at RM94.1 billion for the next 25 years, ensuring a stable revenue outlook and reinforcing our confidence in comfortably meeting our operational needs. The Group’s business model, centred on generating stable recurring income through asset-leasing contracts, is reflected in the steady growth of our non-EPCIC activities’ cash flows from operations over the past years. In FY2025, net cash flows generated from operating activities from our operational assets was RM1.8 billion, a 53% increase from the previous year. Looking back over 3-year time horizon, Yinson’s operating cash flows from our operational assets have more than doubled since FY2022. Cash flows from investing and financing activities During FY2025, cash flows generated from financing activities, primarily through drawdown of loans and borrowings, were used to fund project execution and investing activities, as presented in the Statements of Cash Flows. This aligns with the Group’s strategy to diversify its asset portfolio by developing new businesses. Current ratio (RM million) 1.58 1.05 0.98 2.21 1.45 FY2025 FY2024 FY2023 FY2022 FY2021 Liquidity ratios The Group’s current ratio increased from 1.05 times to 1.58 times, mainly due to improved cash flows from our operational assets and lower payables and project cost accruals to fund EPCIC business activities in FY2025 as FPSO Maria Quitéria and FPSO Atlanta achieved first oil on 15 October 2024 and 31 December 2024 respectively. Statements of Cash Flows, pg 166. The Group continues to optimise our capital structure by seeking alternative sources of funding and reprofiling our debts. During the year, we refinanced FPSO Anna Nery’s mini-perm with the USD 1.035 billion project bond and secured a USD 1 billion structured equity deal with a consortium of international investors. These efforts will free up cash flows for dividends and share buy-backs, reflected in the Group’s total dividends of 4 sen per share for FY2025 – 1 sen higher than the previous financial year. As at 31 January 2025, the Group’s total undrawn borrowing facilities was RM3.2 billion, excluding RM1.2 billion available room in our perpetual securities programmes. These facilities comprise RM3.0 billion in project financing term loans and RM224 million in revolving credit facilities, supporting ongoing and new FPSO projects, and the expansion of our renewables and green technologies businesses. With our strong order book and the continued availability of these borrowing facilities and perpetual securities, the Group is confident that it has sufficient liquidity to meet its liabilities in the foreseeable future. Highlight: USD 1 billion investment from ADIA, BCI and RRJ Group, pg 26.
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