Dear Yinson IR (Insage)/Management and Cheah Chor Sooi,

After reading this article: Don’t compare us with Serba Dinamik, I have two (2) questions as below:

1. Could you try to explain clearly on the non-recourse debt of RM 3.92 billion, IF possible explain in a layman term? By the way, what is the "sic"?

[1] The above article: "Among others, Yinson disputed claims by calvintaneng by clarifying that it is important to note that the company’s RM3.92 bil of debt “is non-recourse to Yinson, ie Yinson does not have a guarantee on the repayments of these loans” as highlighted in its annual report for the financial year ended January 2021”.

“The lenders of these projects would typically instead seek repayment solely on the cash flow of the projects or the parent company guarantee of (sic) or clients,” Yinson further pointed out."

[2] Page 94 of Annual Report 2021:  "Although Net Gearing Ratio has increased, debt levels remain manageable. As at 31 January 2021, RM3,919 million of loans and borrowings are project financing loans for FPSO JAK and FPSO Helang, which are structured to ensure smooth repayment over the course of the firm charter period. Project financing loans are non-recourse to Yinson once operational with Yinson's guarantee being released from the project financing loan, which minimises the risk of these loans to Yinson’s liquidity. The project financing lenders are only entitled to repayment from cash flows of the projects the loan is financing, and not from any other assets of Yinson. As at the issuance date of this Report, the project financing loans for FPSO JAK and FPSO Helang are non-recourse, where the project financing loan for FPSO Helang became non-recourse on 3 February 2021. Had the project financing loan for FPSO Helang become non-recourse on 31 January 2021, the Group's Gearing ratio and Net Gearing ratio would have been 0.54 times and 0.03 times respectively."

BUT, from the Note 32 to Financial Statements (may refer to the below extracted data),  it shows that a total debt of RM6.11 billion, in which mainly consists of the SECURED term loans of RM4.92 billion. 

On the other hand, from the above statement published by Yinson IR (Insage)/Management or Cheah Chor Sooi, it seems that the non-recourse loans of RM3.92 billion is a unsecured loan with Yinson who does not have a guarantee on the repayments of these loans. Not even a collateralised loan? But inside the book, the long-term UNSECURED loan is accounted for RM0.397 billion...How so?

2. Would it be misleading by using the total order book of RM40.26 billion to claim that it's more than sufficient to repay debts, operating costs and pay dividends over time? Is the order book (just top line only, right) be directly contributed to the bottom line? Won't the order book being cancelled or terminated? It sounds like no risk at all by running this kind of business.

Let's put the order book into perspective as below table:

"“For simplicity, (Yinson’s) total order book remained at US$9.75 bil (RM40.26 bil) as of March 31, 2021 which is more than sufficient to repay debts (net debt RM4.1 bil), operation cost and pay dividends over time,” asserted Yinson."

At last but not least, Serba Dinamik has also secured a lot of contracts and bringing the current order book to RM18.50 billion...