Revenue and Profit After Tax Increased By 36.4% And 0.6% Respectively Y-o-Y
KUALA LUMPUR – 27 JUNE 2018 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), Malaysia’s premier integrated offshore production and offshore support services provider, today announced its first quarter results ended 30 April 2018 for its financial year ending 31 January 2019 (“Q1’FYE2019”).
FINANCIAL RESULTS
Current Quarter vs Immediate 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 has reported 8.6% lower in revenue at RM235.2 million as compared to the immediate preceding quarter mainly due to an unfavourable translation movement from the weaker US Dollar against the Malaysia Ringgit. The Group posted an improved 6.4% PAT of RM60.6 million as compared to the immediate preceding quarter of Q4FYE2018.
The improvement was mainly due to: –
- Lower administration overheads – RM13.8 million
- Lower impairment on plant and equipment – RM6.7 million
- Lower finance cost – RM7.9 million
- Higher in share of result of joint ventures – RM5.5 million
The improvement was off-set by: –
- Lower profit contribution on lower reported revenue
- Net unfavourable foreign exchange movement – RM4.4 million
QTD CORE & REPORTED PAT (RM'000)
Current Q1’FYE2019 vs The Previous Year Corresponding Q1’FYE2018:
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
For the financial period under review, the Group reported revenue and PAT of RM235.2 million and RM60.6 million respectively which translates to a 36.4% and 0.6% increase respectively. Revenue growth was contributed mainly from the commencement of the chartering of FPSO John Agyekum Kufuor to ENI Ghana Exploration & Production Ltd. since June 2017. On the other hand, PAT growth has been suppressed by the unfavourable US Dollar currency weakness, higher finance cost of RM40.1 million and lower results in joint ventures of RM25.8 million.
YTD CORE & REPORTED PAT (RM'000)
DIVIDEND
In May 2018, the Group has paid special single-tier dividend of 4.0 sen per ordinary share amounting to approximately RM43.5 million.
The Group will host its 25th Annual General Meeting in July 2018 where a proposed final single-tier dividend of 2.0 sen per ordinary share for the financial year ended 31 January 2018 will be tabled for shareholders’ approval. The final single-tier dividend entitlement date and payable date have been fixed on 2 August 2018 and 27 August 2018 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
“Quarter 1 for our financial year ending January 2019 saw the Group’s results affected by the weaker US Dollar on translation to Malaysia Ringgit. The Group reported a revenue and PAT of RM235.2 million and RM60.6 million respectively, translating into a marginal PAT growth of 0.6% as compared to Q1’FYE2018.
Our first reporting quarter started-off with encouraging developments with the recent completed 26% equity interest disposal in our subsidiary, YP(WA)PL to Japan Sankofa Offshore Production Pte. Ltd., a consortium of Japanese companies. Concurrently, the Group completed the novation for the Group’s first homebound provision of FPSO facilities to client JX Nippon Oil & Gas Exploration (Malaysia).
Engineering and construction works are ongoing for the FPSO and once completed, will be deployed to work offshore at Miri, Sarawak.
On the 14 June 2018, our team successfully secured an exclusive negotiation for a potential supply of an FPSO to Nigeria. This is yet another demonstration of Yinson’s market reputation as a reliable partner with dedicated professional personnel to deliver the preferred solutions.
In respect to the force majeure notice received by our joint venture company PTSC Ca Rong Do Ltd, the Group together with our joint venture partner are actively in talks with the project field owner on all reasonable mitigative actions to protect the interests of the Group.
Over the past months, the stability in oil prices has lifted the sentiment in the O&G industry. Despite the volatility of certain economy, we are cautiously optimistic that there would be more opportunities in the market during the year for us to grow our business in a sustainable manner.” said Mr. Lim.
