Revenue and Core Profits Increase By 26% And 41% Respectively Q-o-Q
KUALA LUMPUR – 27 SEPTEMBER 2017 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), Malaysia’s premier integrated offshore production and offshore support services provider, today announced its second quarter results for its financial year ending 31 January 2018 (“Q2FYE2018”).
FINANCIAL RESULTS
2nd Quarter vs Preceding Quarter:
* Earnings associated with business operations, and excluding earnings from goodwill, gains or losses from nonrecurring items.
For the quarter under review, the Group has reported 26.0% higher revenue at RM217.2 million compared to immediate preceding quarter reported. The Group posted a reported PAT and core profit of RM83.6 million and RM109.5 million respectively translating to a 38.6% and 40.6% increase compared to its preceding quarter Q1FYE2018.
The increase was mainly due to: –
- Higher profit contribution from the chartering commencement of FPSO John Agyekum Kufuor
- Absence of impairment loss on investment properties of RM2.9 million
- Lower administration expenses of RM2.4 million
The increase was off-set by: –
- Impairment loss on trade and other receivables of RM1.6 million
- Impairment loss on property, plant and equipment of RM17.7 million
- Net unfavourable exchange movement of RM1.5 million
- Higher finance cost of RM10.2 million
- Lower in share of joint ventures results of Rm7.3 million
- Higher income tax expense of RM5.4 million
QTD CORE & REPORTED PAT (RM'000)
1HFYE2018 vs 1HFYE2017:
For the financial period under review, the Group reported a revenue and core profit of RM389.6 million and RM187.4 million which translates into a 69.5% and 92.2% increase respectively. The growth was contributed mainly by its marine business segment which has been Yinson’s core contributor since becoming a full-fledged FPSO operator.
YTD CORE & REPORTED PAT (RM'000)
DIVIDEND
The Group had approved and paid the final single-tier of 2.0 sen per share for the financial year ended 31 January 2017 on 18 August 2017.
For the financial period under review, the Board of Directors has declared an interim single-tier dividend of 4.0 sen per ordinary share amounting to approximately RM43.5 million which will be payable on 22 December 2017.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
“Notwithstanding the slow growth rate of the oil and gas industry, we are delighted to report an excellent set of results for the second quarter ended 31 July 2017. Our revenue of RM389.6 mil represented a 70% increase year on year while our year to date core profit after tax of RM187.4 mil represented an increase of 92% year on year.
Looking back on our second quarter for FYE2018, we are proud of our team which continues to deliver outstanding achievements for the Group. On 30 June 2017, Yinson inked the Heads of Agreement (“HOA”) with a consortium of Japanese companies for the proposed disposal of 26% equity interest in our subsidiary, YP(WA)PL. The HOA is significant as it represents the start of a business relationship with our new Japanese partners who are extremely reputable and capable in their respective areas of business.
Our people are currently making progress in the negotiation of the FPSO PTSC Lam Son deployment continuation in the Lam Son Field. We are hopeful that negotiations will be concluded in due course.
We are also pleased to celebrate FPSO John Agyekum Kufuor achieving its first oil in Ghana on 21 May 2017. This remarkable milestone for the Group, which was the culmination of effective collaboration with our key stakeholders and excellent team work within the organization.
We are cautiously optimistic that there are more opportunities in the market for us to capitalise and to ultimately, grow the business in a sustainable manner, not only in the interest of our shareholders but of all our key stakeholders as well. With that we are also happy to announce that we proposed an interim single-tier dividend of 4 sen per ordinary share.” said Mr. Lim.
