Yinson Integrated Annual Report 2025

43 INTEGRATED ANNUAL REPORT 2025 VALUE CREATION AT YINSON | MARKET LANDSCAPE At a headline level, global investment in the energy transition reached close to USD 2.1 trillion, nearly double the total investment in fossil fuels in the same period. 585 GW of renewable energy generation was rolled out in 2024 – a 15% growth YoY with the majority coming from onshore wind and solar plants. China alone delivered 374 GW, demonstrating a strong commitment to deliver cleaner energy to further drive its industrial and social growth ambitions. Within the FPSO segment, almost half of new FPSOs ordered until 2028 are either conversions or redeployments, with a projected CAPEX of approximately USD 29 billion. The high market interest in these projects, relative to new build, is mainly due to the shorter delivery schedules, which reduces the time taken to achieve first oil. Demand outlook is robust in the near term for mid-sized FPSOs, with about 30% of CAPEX expected to be invested in FPSOs producing 100,000 to 200,000 barrels of oil per day. Leased units are expected to account for 40% of FPSO contracts overall. Yinson Production’s positioning, especially in key growth regions, track record in delivering mid-sized FPSOs for deep and ultra-deepwater fields, and operational experience to support client demand for lease and operate units, aligns with these trends. YINSON RENEWABLES Global energy transition investment by sector (USD billion) USD 2.08 trillion global energy transition investment in 2024 USD 140 billion global clean energy supply chain investment in 2024 USD 1.06 trillion total debt and equity raised for climate/energy transition in 2024 Source: Energy Transition Investment Trends 2025, BloombergNEF. Renewable energy Energy storage Nuclear Carbon capture and storage Hydrogen Electrified transport Clean shipping Electrified heat Clean industry Power grids 929 2020 2021 1,177 2022 1,517 2023 1,881 2024 2,083 Renewable power capacity growth (GW) Source: Renewable Capacity Highlights, 26 March 2025, International Renewable Energy Agency (IRENA). 0 1 2 3 4 5 0 100 200 300 400 500 2019 2020 2021 2022 2023 2024 Capacity added in 2024 Solar Hydropower Wind Others This growth is due to renewable energy being the lowestcost source of new electricity generation. It enables access to affordable clean energy for developing countries and facilitates the replacement of ageing and fossil-based energy infrastructure in developed nations. There are challenges to maintaining and increasing the pace of this rollout, which jeopardises the achievement of global warming reduction. The strains created by global conflicts and resultant energy crises have led to backlashes in various countries, testing governments’ political commitment to the Yinson Renewables Review, pg 66. 2024 was another record-breaking year for renewables deployment globally. However, this message was overshadowed by negative media coverage on the offshore wind sector, which experienced a scale-back. This issue is discussed further within the Yinson Renewables Review. (’000)

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