Revenue Increase of 7.7% with 24.2% higher Core Profit Q-to-Q
KUALA LUMPUR – 20 December 2018 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), Malaysia's premier integrated offshore production and offshore support services provider, today announced its third quarter results for the financial year ending 31 January 2019 (“Q3'FYE2019”).
FINANCIAL RESULTS
Current Quarter vs Preceding Quarter:
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
For the quarter under review, the Group's revenue rose 7.7% to RM265.6 million as compared to the immediate preceding quarter (Q2 FYE2019), mainly due to stronger translation of the US Dollar against the Malaysia Ringgit. PAT, meanwhile, fell 35.5% to RM51.8 million as compared to the preceding quarter.
The improvement was mainly due to: –
- Higher impairment on property, plant & equipment – RM59.92 million; and
- Higher fair value loss on investment property- RM3.50 million
The decrease was offset by: –
- Net favourable foreign exchange movement- RM17.68 million
- Higher share of results of joint ventures and associates – RMl.42 million; and
- Lower finance costs – RM3.24 million
Should the results not be affected by impairment on property, plant & equipment, the Group's profit before tax for the current period under review would be RM137.14 million as compared to RM107.31 million in the immediate preceding quarter.
QTD CORE & REPORTED PAT (RM'000)
DIVIDEND
The Group had in the previous quarter declared an interim single-tier dividend of 4.0 sen per ordinary share for the financial year ending 31 January 2019. The interim single-tier dividend entitlement date and payable date was fixed on 29 November 2018 and 21 December 2018 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
‘The third quarter of Yinson's financial year 2019 saw a 7.7% increase in revenue to RM265.6 million and a core profit growth of 24.2% to RM90.0 million, marking a stable performance overall, despite being impacted by a property, plant & equipment impairment of RM65.9 million, which resulted in a lower reported PAT of RMSl.8 million.
Yinson's financials have been rather steady despite the volatile oil prices and we remain hopeful of securing more FPSO contracts in the near future.
It continues to be an exciting time for Yinson as several of our vessels reach milestone events. We are in the midst of negotiating a further substantive extension for the charter of FPSO Adoon, our vessel operating in the Block OML 123 field, Nigeria. The original charter was awarded on 17 October 2006 for a firm period of 8 years and option to renew up to 8 years. Also, Yinson and First E&P remain in advanced stages of negotiations of our Head Of Terms agreement for the supply and charter of a FPSO unit for the Anyala and Madu fields in offshore Nigeria. We look forward to sharing more updates on these projects soon.
This quarter we also announced the termination of FPSO Allan which has served nearly 10 years firm period in the Olowi field, Gabon. The announcement not only marks the successful execution of this project, but also presents an exciting redeployment opportunity for the Company.
Closer to home, FPSO Helang, our newest asset commissioned to serve the Layang field off the coast of Miri, entered the second phase of construction in mid December 2019. In this coming phase, the vessel will undergo production systems integration and commissioning. FPSO Helang is on schedule for handover in Q4 2019, and is Yinson's first vessel to operate in a Malaysian oilfield.
We also pleased to welcome Datuk Abdullah bin Karim on board as Independent Non-Executive Director of Yinson, effective on 16 October 2018, bringing with him 39 years of experience in the oil and gas industry. Yinson is indeed fortunate to have a diverse group of Board Members who have the expertise and desire to help us achieve our goals. I would also like to take this opportunity to thank our outgoing Senior Independent Non-Executive Director, Datuk Syed Zaid bin Syed Jaffar Albar for his contribution to our organisation.
As 2018 draws to a close, I wish to express my deepest gratitude to all our stakeholders for your continued trust and confidence in us. Guided by our new mission statement ‘Passionately delivering powerful solutions' and our core values of Reliable, Open, Adaptable, Decisive and Sustainable, I would like to reaffirm Vinson's commitment to delivering on our shared goals.
