61 INTEGRATED ANNUAL REPORT 2026 BUSINESS REVIEWS | MARKET LANDSCAPE Alongside continued demand for FPSOs, momentum is building in adjacent areas such as CCS and floating liquefied natural gas (“FLNG”), driven by the need to decarbonise operations and monetise gas resources. Carbon capture capacity will need to grow more than 100-fold by 2050 to meet net zero targets, while gas is expected to remain an important transition fuel, with continued investment in liquefaction infrastructure, particularly in Asia. These trends point to a growing role for flexible, offshore-based solutions. For companies with strong project execution and lease & operate capabilities, this creates a natural extension into adjacent business areas. In line with these market dynamics, Yinson Production remains focused on segments where our capabilities are strongest: mid-sized FPSO conversions under a lease & operate model. This strategy leverages our core strengths in fast-track project execution, lifecycle optimisation and operational reliability – providing clients with efficient delivery, earlier hydrocarbons, stronger cash flow visibility and dependable long-term performance. External environment Risks Opportunities Yinson Production’s response Geopolitical and energy market volatility. • Sanctions, supply chain disruptions, and rising energy costs may elevate execution costs and cause project delays. • Global uncertainty may dampen investments in high-CAPEX infrastructure projects. • Sustained demand for FPSOs as countries prioritise energy security. • Companies with strong liquidity and adaptable business models can capture emerging opportunities. • Resilient supply chains and partnerships help companies navigate volatility and enhance competitiveness. • Prudently manage liquidity and capital. • Careful and risk-informed approach to project selection. • Early and high-quality supply chain engagements. • Actively monitor and adapt to changing market conditions, remaining agile. Evolving ESG sentiment continues to shape stakeholder expectations and the broader operating landscape. • Evolving investor preferences, including ESG considerations, may influence capital allocation trends. • Reputation risk for traditional energy producers. • Increased scrutiny related to potential greenwashing. • Reduced interest in oil & gas careers among younger talent pool. • Strong opportunities for projects that support an inclusive energy transition. • Companies that embrace ESG principles are more adaptable and resilient. • Clear ESG alignment can broaden capital pools. • Integrating sustainability considerations into operations can improve resilience and long-term value creation. • Continue integrating ESG considerations into business decisions in a balanced and value-driven manner. • Maintain transparent disclosures and clear communications to build stakeholder confidence. • Engage proactively with capital providers to stay aligned with evolving expectations. Increased regulatory requirements. • Gaps in governance structures and risk management processes may result in noncompliance with regulatory, legal, and other requirements. • Strong compliance opens access to high-value markets with strict environmental and safety standards. • Regulatory pressures drive innovation, operational efficiencies and cost improvements. • Uphold the highest standards of governance, transparency and disclosure. • Continuously enhance the Enterprise Risk Management framework to monitor and manage regulatory risks. Uneven pace of energy transition, influenced by evolving energy security, affordability, and policy priorities. • Slower or uneven progress in the energy transition may create uncertainty in long-term demand outlooks. • Policy and regulatory shifts may impact project timelines and investment decisions. • Increasing complexity in balancing traditional energy investments with transition-related initiatives. • Continued demand for reliable oil & gas solutions within a balanced and secure energy mix. • Strong opportunities in transitional projects that enable a pragmatic shift towards lowercarbon energy systems. • Energy security concerns reinforce the need for proven, dependable energy infrastructure and operators with strong execution track records. • Maintain a disciplined and balanced approach to capital allocation across traditional and transition opportunities. • Advance a clear, pragmatic transition strategy aligned with market realities and stakeholder expectations. • Leverage long-term contracts and robust order book to strengthen earnings resilience and stability. Yinson Production’s approach to market risks and opportunities
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