DIVIDEND

Yinson has declared an interim single-tier dividend of 4.0 sen per ordinary share for the financial year ending 31 January 2021. The interim single-tier dividend entitlement date and payable date are 30 November 2020 and 18 December 2020 respectively.

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

Yinson had recorded a commendable result this quarter with the contribution from the EPCIC activities of FPSO Anna Nery. Despite the more challenging operating conditions amidst the pandemic, the Yinson team remains steadfast to deliver on our commitments to our clients and to create value for our stakeholders.

That said, major economies, including Malaysia, continue to be significantly affected by Covid-19 pandemic related factors, which, according to the latest Global Economic Outlook, may shrink the global economy by 4.4% in 2020.

However, with the gradual reopening of the various business sectors, the economy, both globally and within Malaysia, is experiencing an anaemic but steady recovery. Although we are hopeful that this will buffer the global economy from contracting further, we are also cognisant that future developments cannot be predicted with confidence. Whilst these uncertainties are mitigated by the fact that the Group’s revenue comes primarily from long term fixed priced contracts with reputable oil companies, we will continue to monitor macro developments so that we can take pre-emptive and proactive measures as and when necessary.

From the low of less than USD20 per barrel in the second quarter of the year, the Brent crude oil price has stabilised around the low USD40 level. To further revive the demand for oil, the Organisation of the Petroleum Exporting Countries (OPEC) recently cut production by 1.93 million barrels a day to 22.69 million barrels. This is the lowest production level since 1991.

On 24 September 2020, FPSO Anna Nery entered into the next phase of construction, marked by the sailing away from the Cosco Qidong shipyard to the Cosco Changxing shipyard in Shanghai. In this phase, the FPSO will undergo both first and second dry docking and hull reinforcement works. Conversion works are progressing well, with demolition activities completed, and module fabrication works underway. In another project milestone, FPSO Anna Nery achieved 1 million man-hours without Lost Time Injury in mid-September 2020. Our hearty appreciation goes to our project management team, partner shipyard and all our contractors and stakeholders for this fantastic achievement.

FPSO Abigail-Joseph arrived at her final destination at the Anyala and Madu field in offshore Nigeria on 23 July 2020 and had all mooring lines hooked-up in mid-August. Hook-up of risers and umbilicals to the FPSO was completed in early September. We look forward to completing final commissioning and achieving the next milestone, first oil production.

Operations-wise, while the ongoing Covid-19 pandemic has posed several challenges, we are pleased to share that our production and safety performance has remained unchanged – at world class excellence levels.

We also achieved several corporate milestones this quarter.

In August 2020, Yinson entered into an agreement to increase its stake in Rising Sun Energy Private Limited (“RSE”) to 95%, following our initial 37.5% part-acquisition five months earlier. The proposed acquisition is in line with the Group’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets and provides a platform for growth in a key renewables market. RSE owns two adjoining operational solar plants in India’s Bhadla Solar Park, with a combined generation capacity of 140MW (AC rated). We are actively growing our Renewables Division and look forward to sharing some further exciting developments as they unfold.

On 18 September 2020, Yinson together with our project partner, Sumitomo Corporation, secured a USD400 million bridge financing for FPSO Anna Nery. The bridge loan was supported by seven banks and was commemorated by a virtual appreciation ceremony held on the same day. The support that we have received for this deal is indicative of the confidence that the financial community has in Yinson – and for that, we are grateful.

Earlier in the quarter, Yinson welcomed Kawasaki Kisen Kaisha Ltd. (“‘K’ Line”) as the second strategic partner on the FPSO Anna Nery project with the signing of an agreement for K Line to own around a 10% stake in the project. The completion of the transaction is subject to final acceptance of the FPSO and the achievement of stable operations.

We held our 27^th Annual General Meeting (“AGM”) on 16 July 2020. The AGM was held virtually to maximise shareholders’ participation while ensuring their well-being amidst the current Covid-19 situation. I am pleased to reiterate that all the resolutions were approved by a landslide majority.

For the second year in a row, Yinson was awarded the ‘Most Honoured Company’ title in the 2020 AllAsia Executive Team Rankings organised by Institutional Investor. Yinson’s Group Chief Executive Officer Lim Chern Yuan was also ranked third in the Best CEO category under the Oil & Gas sector. We are honoured by this prestigious recognition by the investment community. We are also pleased to have maintained our status as a constituent of the FTSE4Good Index Series for the second year running – an assurance that the investment we are putting into implementing strong ESG practises is bearing fruit towards building a more sustainable business.

Yinson, like many businesses around the world, is adapting to the ‘new norm’ brought about by unprecedented circumstances. We have thus far remained resilient by adhering closely to our business strategy and core values, and will continue to do so in order to deliver on our commitments to our stakeholders.