DIVIDEND

The Group will hold its 27^th Annual General Meeting on 16 July 2020, where a proposed final single-tier dividend of 2.0 sen per ordinary share for the financial year ended 31 January 2020 will be tabled for shareholders’ approval. If approved, the entitlement and payment dates for the dividend are expected to be on 6 August 2020 and 28 August 2020 respectively.

CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON

The outlook of the market remains uncertain due to the disruptions to the global supply chain and economic slowdown caused by the Covid-19 pandemic. Despite this, on the local front, Malaysia’s first quarter GDP grew by 0.7% compared to an expected contraction of 0.1%.

As for the oil market, we have seen a rebound to USD40 per barrel for Brent crude oil. This was due to the cut in production by OPEC and its alliances until end July to address the reduction in market demand due to slower economic activities.

As we speak, economies are opening up at a moderate pace with guidelines in place to control the spread of Covid-19. Yinson will continue to play our role in the global energy supply chain and ensure energy products will continued to be supplied to various countries and communities.

Despite the challenging circumstances, Yinson has achieved several milestones in the last quarter.

On 31 March 2020, Yinson entered into multiple agreements to acquire a 37.5% equity interest in Rising Sun Energy Private Limited (“RSE”), marking our entry into the renewables market. RSE is an India-incorporated company with two operational solar plants in Bhadla Solar Park, Rajasthan, India with a combined capacity of 140MW (AC). This transaction supports our vision of becoming a global energy solutions provider, specifically relating to our diversification into renewable energy generation assets.

We are pleased to announce that Yinson completed a USD800 million refinancing exercise for FPSO John Agyekum Kufuor, with the loan successfully drawn down on 14 April 2020. 13 local and international banks, 7 of which are new to Yinson, participated in the deal, which was oversubscribed by 45%. The refinancing has allowed us to enjoy lower interest rates and a strengthened cash position. Yinson’s balance sheet remains strong, with the cash position increased to RM2.04 billion as at 30 April 2020 from RM1.28 billion as at 31 January 2020. The refinancing was particularly significant, considering that it was completed at the height of the movement control restrictions and turbulent economic environment. We are indeed thankful to the financial community for their confidence in us, as well as our partners, Sumitomo Corporation, Kawasaki Kisen Kaisha Ltd, JGC Holdings Corporation and Development Bank of Japan for their steady support.

On 23 March 2020, Yinson and Petrobras signed firm contracts for the FPSO Anna Nery Project, five months after Letters of Intent were entered into. To add to this achievement, Yinson and Sumitomo Corporation concluded an agreement for Sumitomo's participation in the FPSO Anna Nery project with a 25% stake on 28 April 2020. These developments with our client, Petrobras; and partner, Sumitomo, are indeed a testament to the confidence that they have in Yinson's ability to execute the project well and successfully adapt to various unprecedented challenges such as the Covid-19 situation.

In May 2020, Yinson concluded settlement with Aker Energy Ghana Limited (“Aker Energy”) for the termination of the Pecan development project. The Letter of Intent for the project, which was for the charter, operation and maintenance of an FPSO in the Deepwater Tano/Cape Three Points block, offshore Ghana, was awarded to Yinson in February 2020. However, the contract was terminated about a month later due to Aker Energy's plan to postpone the project amid the Covid-19 pandemic.

For our active ongoing projects, the conversion of FPSO Anna Nery is going well. First steel cut took place on 17 April 2020, structural hull work has commenced, and we are making good progress with demolition works. FPSO Abigail-Joseph is currently in Namibia, where she has successfully undergone several activities in preparation for final commissioning. The vessel is ready for her onward journey to the production field in OML 83 and 85, Nigeria, subject to field readiness to be advised by the client. Both our project and operation teams are excited to embark on the final phase of this project before it commences operations.

Yinson’s fleet uptime remains above 99%, maintained through a robust crewing retention and support programme, which has been enhanced to adapt to restrictions. Our onshore operations continued to function as usual throughout the movement restrictions, mainly as a result of work-from-home options that had been in place even prior to the pandemic, and the additional health, safety and infrastructure support provided by the Company throughout the period.

Yinson has also been actively supporting our frontliners and communities throughout the pandemic. To date, we have contributed over RM1 million in medical protective equipment and to support the fight against Covid-19 with initiatives taking place in Kuala Lumpur, Miri and Ghana. As the world rebuilds from this pandemic, Yinson will carry on in playing our part to support recovery efforts.

We are living in unprecedented times. Nevertheless, we are confident that Yinson remains resilient, attributed to our ongoing contracts, strong fundamentals and the investment we have put into building the sustainability of our business.