60 YINSON HOLDINGS BERHAD BUSINESS REVIEW Last year was pivotal for Yinson Production as we delivered multiple projects that have further strengthened our position as a leading player in the offshore production industry. From first oil achievements to operational milestones, we have proven we can execute complex projects safely and to the highest standards. We now enter a phase of consolidation − a time to enhance efficiency and refine our structures to support further growth. Our focus will be to position ourselves to capture the current wave of opportunities in the dynamic FPSO market. At Yinson Production, our purpose remains clear – to design, construct, and operate industry-leading production assets that enhance global access to stable and affordable energy. As a leader in the building, lease and operation of mid-sized FPSOs, we are committed to driving technological and digital innovation while maintaining high standards in ESG performance. Part of our long-term strategy is to build a resilient financial ecosystem that supports sustainable value creation while expanding synergistic businesses within the offshore energy sector. Guided by these goals, we remain focused on securing high-quality projects that align with our strategic priorities. We continue to deliver these safely and to a high standard, while maintaining industry-leading uptime and safety performance on our operating fleet. Through digitalisation and technological advancements, we are enhancing productivity, improving asset efficiency, and pioneering solutions for the decarbonisation of the offshore energy industry. Additionally, our robust financing strategies enable us to broaden our funding base to support growth and capture new market opportunities. To this end, we have raised nearly USD 3 billion in private and public markets since 2023. The market for offshore oil production remains robust. Global energy demand continues to rise, with oil & gas playing a critical role in ensuring energy security. FPSOs, especially mid-sized ones, are a preferred solution due to their flexibility, cost-effectiveness, and ability to access deepwater reserves. About 11 FPSO contracts are expected to be awarded annually over the next five years – back to historical levels. In terms of locations, the projected awards are concentrated in Brazil, West Africa, and Southeast Asia, where Yinson Production is already well established. We see strong opportunities in the lease and operate space, where clients value partners who can deliver end-to-end solutions. Our proven capabilities in conversions and redeployments further enhance our value proposition. These are key methods through which we deliver FPSOs efficiently, often shortening delivery timelines and optimising costs for clients. Our segment is seeing healthy demand as operators seek contractors with the right expertise and experience to deliver. A YEAR OF SIGNIFICANT PROGRESS Yinson Production continued to make significant strides in 2024, executing key projects while maintaining industry-leading operational performance. FPSO Maria Quitéria achieved first oil on 15 October 2024, starting our 22.5-year charter for Petrobras. Featuring advanced energy systems and technology, such as the first combined cycle power generation on a FPSO conversion project, the vessel is generating valuable operational insights, which we are applying across our fleet to drive decarbonisation and enhance efficiency. FPSO Atlanta achieved first oil on 31 December 2024, marking the start of our 15-year contract with Brava Energia. As our third operational asset in Brazil, FPSO Atlanta deepens our footprint in Brazil and positions us for long-term value creation in Latin America. The project faced several challenges, some of which were due to circumstances beyond our control, including a strike by regulators. I am immensely proud of the project team, who had worked tirelessly to overcome these challenges. Our fleet of 10 assets collectively gives us long-term visibility of our contracted income. This relatively short-term delay with FPSO Atlanta does not change our fundamental outlook and strategy. These are well in place. The Agogo FPSO sailed away from the shipyard 3.5 months ahead of schedule and arrived safely in Angola on 16 May 2025 − a major feat for our team and contractors. The FPSO is slated for deployment in the second half of 2025, marking a strategic expansion of our presence in West Africa and setting a new benchmark for innovation in carbon-reduction technologies within the sector. In December 2024, PTSC Asia Pacific, our joint venture with PetroVietnam Technical Services Corporation (“PTSC”), signed a contract to build and operate a double-hull FSO vessel for a subsidiary of Murphy Oil Corporation. This marks a significant strategic milestone, deepening our established presence in Vietnam while opening a new chapter with Murphy Oil, one of the world’s leading oil majors. We also announced the extension of the charter contract for FPSO PTSC Lam Son for 18 months starting from January 2025 to June 2026, with an automatic extension for an additional six months until December 2026. On 26 September 2024, Yinson Production was honoured with the 2024 Petrobras Best Supplier Award in the Offshore Engineering (Obras De Engenharia Offshore) category for the successful execution of the FPSO Maria Quitéria project. Collectively, these milestones have reinforced Yinson Production’s reputation as a trusted, high-performing partner capable of delivering complex projects safely, sustainably, and on an international scale.
RkJQdWJsaXNoZXIy NDgzMzc=