ANNUAL REPORT 2017 - Latest Announcement ... and New Zealand Banking Group Limited Bangkok Bank Berhad Bank Muamalat Malaysia Berhad Bank of China (Malaysia) Berhad CIMB Bank Export - Import Bank of Malaysia Berhad Hong Leong Bank Berhad

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    27-May-2018

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  • ANNUALREPORT2017

  • CONTENTCORPORATE OVERVIEW

    2 About Yinson

    4 Corporate Information

    6 Our Assets

    8 Our Performance

    10 Key Events

    12 Group Financial Highlights

    STEWARDSHIP

    14 Board of Directors

    20 Key Management

    26 Chairmans Statement

    30 Management Discussion and Analysis

    GOVERNANCE

    36 Statement on Corporate Governance

    48 Statement on Risk Management and Internal Control

    51 Report on Audit and Risk Management Committee

    54 Statement on Directors Responsibility

    ACCOUNTABILITY

    56 Directors Report and Audited Financial Statement

    167 Analysis of Shareholdings

    170 List of Properties

    171 Notice of Annual General Meeting

    Form of Proxy

  • OURVISIONTo be a leading provider of Floating, Production, Storage and Offloading Service to the global oil and gas industry through developing unique partnerships with our clients and also cater to their logistics and supply requirements.

    OURMISSIONThrough continuity in maintaining a modern fleet of FPSOs, FSOs, and OSVs, we shall develop and implement operational strategies which best serve our clients. Our customers will have our commitment that we shall continually seek new opportunities to serve and support their growth strategy together, as partners.

    002Yinson Holdings Berhad Annual Report 2017

    ABOUT YINSON

  • Yinson Holdings BerhadAnnual Report 2017

    003About Yinson (contd)

    THE FPSO JOURNEY

    In 1984, Yinson started as a humble transport agency in Johor Bahru, with business ventures in logistics services and commodity trading. By 2007, Yinson was a leading transport company in Malaysia with 365 trucks in operation and thereafter, Yinson supplied a total of 565 trucks in its transportation services to its domestic customers.

    In 2010, Yinson ventured into the marine transport business, by acquiring 5 tugboats to complement its transport and logistic services. In addition, the Group commenced its port cargo handling services in Vietnam.

    ORIGINLOGISTICS SERVICES

    The Group had dispose all of its non-oil & gas business segments and streamline its business to be a full-fledged FPSO company in 2016.

    Currently, Yinson is the 6th largest FPSO company in the global FPSO market, boasting a fleet of 5 FPSOs and 1 FSO. Yinson has a wide geographical presence e.g. West Africa, Europe and South East Asia.

    PROGRESSION5 FPSO / 1 FSO / 1 PSV / 3 AHTS

    In 2011, Yinson entered into a consortium agreement with PetroVietnam Technical Services Corporations (PTSC), and the joint venture was subsequently awarded a contract for the provision of a floating storage and offloading vessel (FSO) i.e. FSO PTSC Bien Dong. In 2012 and via a partnership with PTSC again, Yinson was awarded a contract for the provision of a floating production storage and offloading vessel (FPSO) i.e. FPSO PTSC Lam Son.

    The breakthrough came in early 2014 when Yinson acquired Fred. Olsen Production ASA, an established company in the FPSO industry and listed in the Norwegian Stock Exchange (Oslo Bors). Post-acquisition, Yinson inherited not only 3 FPSOs and 1 mobile offshore production unit (MOPU) contract, but also a strong and experienced FPSO team to grow the business.

    TRANSFORMATIONOIL & GAS SERVICES

  • Yinson Holdings Berhad Annual Report 2017

    004 CORPORATE INFORMATION

    AUDITORSPricewaterhouseCoopers

    COMPANY SECRETARYWong Wai Foong (F) (MAICSA 7001358)Tan Bee Hwee (F) (MAICSA 7021024)

    REGISTERED OFFICENo. 25, Jalan Firma 2Kawasan Perindustrian Tebrau IV81100 Johor BahruJohor Darul TakzimTel : 07-355 2244Fax : 07-355 2277

    CORPORATE OFFICESuite 12.01, Level 12, Menara IGBMid Valley City, Lingkaran Syed Putra59200 Kuala LumpurTel : 03-2282 8844Fax : 03-2282 7389E-mail : info@yinson.com.myWebsite : www.yinson.com.my

    REGISTRARSecurities Services (Holdings) Sdn BhdLevel 7, Menara MileniumJalan DamanlelaPusat Bandar DamansaraDamansara Heights50490 Kuala LumpurTel : 03-2084 9000Fax : 03-2094 9940

    PRINCIPAL BANKERS AND FINANCIERSAmBank (M) BerhadAsian Finance Bank BerhadAustralia and New Zealand Banking Group LimitedBangkok Bank BerhadBank Muamalat Malaysia BerhadBank of China (Malaysia) BerhadCIMB BankExport - Import Bank of Malaysia BerhadHong Leong Bank BerhadHSBC BankIntesa Sanpaolo S.p.AMaybankOversea-Chinese Banking CorporationPublic Bank BerhadStandard Chartered BankThe Bank of East Asia, LimitedUnited Overseas Bank

  • Yinson Holdings BerhadAnnual Report 2017 Yinson Holdings BerhadAnnual Report 2017

    005

    COMPANY STRATEGIES

    OUR GLOBAL PRESENCE

    Becoming a Leading Provider in the O&G Industry

    1. FPSO JOHN AGYEKUM KUFUOR

    2. FPSO ADOON3. FPSO ALLAN

    4. FPSO FOUR RAINBOW5. FSO PTSC BIEN DONG 016. FPSO PTSC LAM SON

    1 High Quality Counterparties

    Reputable and renowned clients and joint venture partners

    2 Track Record in Operations and

    MaintenanceDelivering proven consistency in fleet

    uptime (>99%)

    3Long-term Charter Contracts

    Strong order book underpinned by long term contracts, delivering sustainable cash flows

    to accelerate the growth of the business

    4Robust Contractual Terms

    Providing protection against early contract termination, oil price and reservoir risks

    5Strong & Experienced Project

    Execution TeamsDelivering projects to client on time and

    within budget

    6Build, Own &Lease Model

    7Disciplined in Business & Financial

    Management

    8Strong Local Content in Operating

    Countries

    9Winning Contracts with Innovative

    Solutions

  • Yinson Holdings Berhad Annual Report 2017

    006 OUR ASSETS

    FPSO ALLAN - GABON

    FPSO Name : AllanCharterer : CNRField : OlowiDeadweight : 145,242 tonnesStorage Capacity : 1.04 million barrelsProduction Capacity : Oil: 35,000 BOPD Liquid: 50,000 BLPD Gas Compression: 75 MMSCFDContract : 1 May 2009 Commencement DateRemaining : Fixed: 2 yearsContract Life As Optional extension: 10 years x 1 yearAt May 2017 Total: 12 YearsOwnership : 100% YinsonUptime : Above 99%

    FPSO ADOON - NIGERIA

    FPSO Name : AdoonCharterer : Addax PetroleumField : Block OML123Deadweight : 244,492 tonnesStorage Capacity : 1.7 million barrelsProduction Capacity : Oil: 60,000 BOPD Liquid: 140,000 BLPD Gas: 7 MMSCFDContract : 17 October 2006 Commencement Date Remaining : Fixed: 1.5 yearsContract Life As Optional extension: Up to 4 yearsAt May 2017 Total: 5.5 yearsOwnership : 100% YinsonUptime : Above 99%

    FPSO PTSC LAM SON - VIETNAM

    FPSO Name : PTSC Lam SonCharterer : PTSCField : Block 1-2/97Storage Capacity : 350,000 barrelsProduction Capacity : Oil: 18,000 BOPD Liquid: 28,000 BLPD Gas Compression: 47 MMSCFDContract : 6 June 2014Commencement Date Remaining : Fixed: 4.1 yearsContract Life As Optional extension: 1 + 1 +1 yearsAt May 2017 Total: 7.1 YearsOwnership : 51%: PTSC; 49%: YinsonUptime : Above 99%

    Note : Contract termination to occur on 30 June 2017. However PetroVietnam intends to continue production at the site using PTSC Lam Son and negotiations are ongoing for this purpose.

  • Yinson Holdings BerhadAnnual Report 2017

    007Our Assets (contd)

    FSO PTSC BIEN DONG 01 - VIETNAM

    FSO Name : PTSC Bien Dong 01Charterer : PTSCField : Block 05-2/05-3Storage Capacity : 350,000 barrelsContract : 7 August 2013Commencement Date Remaining : Fixed: 6.3 yearsContract Life As Optional extension: 5 + 2 + 2 + 1 yearsAt May 2017 Total: 16.3 yearsOwnership : 51%: PTSC; 49%: YinsonUptime : Above 99%

    FPSO FOUR RAINBOW

    FPSO Name : Four RainbowStorage Capacity : 600,000 barrelsProduction : Oil: 40,000 BOPDCapacity Liquid: 52,000 BLPD

    Gas Compression: 10 MMSCFDOwnership : 51% Yinson; 49% Premuda

    Note: For redeployment opportunity

    FPSO JOHN AGYEKUM KUFUOR - GHANA

    FPSO Name : John Agyekum KufuorCharterer : ENIField : Offshore Cape Three Points (OCTP)

    Block GhanaStorage Capacity : 1.4 million barrelsProduction : Oil: 58,000 BOPDCapacity Liquid: 75,000 BLPD

    Gas Injection: 165 MMSCFD Gas Export: 210 MMSCFD

    Contract Duration : Fixed 15 years (2017 2032) Optional extension: 5 years Total: 20 years

    Ownership : 100% Yinson

  • Yinson Holdings Berhad Annual Report 2017

    008

    Counter-party

    Vessel/Year 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036

    2011 & 2012

    20132014

    2015

    2016 2017

    JV with PTSC for FSO PTSC Bien Dong 01.

    Contract size USD331.2 million.

    3 for 2 Rights Issue.

    JV with PTSC for FPSO PTSC Lam Son.

    Contract Size USD737.3 million.

    OURGROWTH

    STRONG ORDER BOOK

    FPSOAdoon

    FPSOAllan

    FSO PTSCBien Dong 01

    FPSO PTSCLam Son(1)

    FPSO JohnAgyekumKufuor

    FPSO CRDProject(2)

    Firm period untilOctober 2018 Up to 4 year option

    Up to 10 year option

    Up to 10 year option

    Up to 3 year option

    Up to 5 year option

    Firm period untilApril 2019

    Firm period until August 2023

    Firm period until June 2021

    Firm 15 year period until 2032

    Up to 5 year optionFirm 10 year period until 2029

    Awarded the ENI OCTP Ghana FPSO contract up to USD3.256 billion.

    Private Placement.

    Issued USD100 million hybrid perpetual bond to increase the equity base of the Group.

    JV with Premuda for FPSO Four Rainbow.

    2nd extension of FPSO Adoons Charter Contract for a further 3 years (17 Oct 2015 to 16 Oct 2018).

    Divested non-oil and gas subsidiaries, transforming Yinson into a full-fledged oil & gas service provider.

    Won