KUALA LUMPUR – 26 June 2019 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), one of the world’s leading Floating, Production, Storage and Offloading (“FPSO”) facilities and services providers, today announced its first quarter results for the financial year ending 31 January 2020 (“Q1FYE2020”).
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 is 27.3% lower at RM209.0 million as compared to Q4FYE2019’s revenue of RM287.6 million, mainly due to FPSO Allan’s charter contribution ceasing at the end of last financial year. PAT lowered by 13.9% to RM61.7 million as compared to the preceding quarter’s PAT of RM70.9 million. Cash balance at the end of the quarter stands at RM 1.7 billion.
The decline in PAT was mainly due to the absence of net reversal effect on impairment loss on plant & equipment – RM38.8m, and offset by:
- Favourable net foreign exchange movement of RM19.7m;
- Lower impairment losses amounting to RM18.2m;
- Lower depreciation and amortisation of RM17.8m;
- Higher share of joint ventures earnings of RM4.5m;
- Lower finance costs of RM5.2m; and
- Lower income tax expenses of RM6.0m
QTD CORE & REPORTED PAT (RM'000)
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
Year on year, Q1FYE2020 revenue fell by 11.1% as a result of the charter for FPSO Allan in Gabon ending last financial year. The PAT, however, rose by 1.8% on lower depreciation and amortisation of RM10.4 million, a higher net favourable foreign exchange movement of RM4.2 million, higher interest income of RM4.0 million, lower finance cost of RM3.0 million and higher share of joint ventures earnings of RM4.5 million. These, however, were offset by higher impairment loss on trade and other receivables of RM2.8 million and higher tax expenses of RM3.1 million.
YTD CORE & REPORTED PAT (RM'000)
DIVIDEND
The Group will hold its 26th Annual General Meeting on 11 July 2019. A proposed final single-tier dividend of 2.0 sen per ordinary share for the financial year ended 31 January 2019 will be tabled for shareholders’ approval. The final single-tier dividend entitlement date and payable date have been fixed on 8 August 2019 and 28 August 2019 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
“The Group delivered steady results for Q1FYE2020 with a slight increase in PAT, year-on-year. Overall, we are optimistic of the outlook as FPSO Allan, which completed its charter in January 2019, will be redeployed as FPSO Abigail-Joseph for operations at the Anyala and Madu Fields, Nigeria. The Group’s balance sheet for the reporting quarter has also been further strengthened with total cash and bank balances of RM1.7 billion, enabling us to cater for investments needed in prospect projects.
We are also pleased to announce that Addax Petroleum has extended our contract for FPSO Adoon for an additional four years to 16 October 2022 with an estimated contract value of USD137.5 million (equivalent to approximately RM574.1 million). I would like to congratulate the team for maintaining excellent uptime, health and safety records, bolstering the client’s confidence in Yinson.
The Naming Ceremony for FPSO Helang is set to take place on 25 July 2019 at our shipyard partner’s quayside in Qidong, China, where she is currently undergoing final conversion works. The ceremony is a significant milestone in the FPSO Helang’s journey and we look forward to celebrating her naming and eventual sailaway. FPSO Helang will be our first deployment on home soil. Our operations office in Miri, Sarawak is fully operational, and we are hopeful that the vessel will achieve early delivery.
Yinson recently participated in a number of FPSO project tenders in a bid to broaden our market share. With Yinson’s strong track record and healthy balance sheet, we are optimistic that we are able to compete alongside other global FPSO operators for the bids that we have entered into, particularly in the Brazil and African region. We look forward to sharing with you the outcomes of these bids in the near future.”
