Revenue Increase By 4.8% with Profit After Tax Increase By 32.5% Q-to-Q
KUALA LUMPUR – 24 September 2018 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 2019 (“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 has reported a 4.8% higher revenue at RM246.5 million as compared to the immediate preceding quarter reported, mainly due to translation on stronger US Dollar against Malaysia Ringgit. The Group posted a 32.5% better reported PAT of RM80.3 million as compared to its preceding quarter Q1 FYE2019.
The improvement was mainly due to: –
- Higher profit on stronger reported revenue
- Net favourable foreign exchange movement – RM15.3 million
- Higher share in result of joint ventures – RM3.6 million
The improvement was off-set by: –
- Higher impairment on plants and equipment – RM5.9 million
- Higher tax expenses – RM6.2 million
QTD CORE & REPORTED PAT (RM'000)
DIVIDEND
The Group has 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 have been fixed on 29 November 2018 and 21 December 2018 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
“Quarter 2 for our financial year 2019 sees the Group’s results stronger, with Revenue increasing by 4.8% to RM246.5 million and a 15.8% higher Profit After Tax of RM72.44 million compared to the previous quarter. The Group also charted a higher YTD revenue of RM481.7 million, showing an increase of 23.6% on the same timeframe last year.
Our second reporting quarter brought some significant developments to our business. The successful disposal of 26% of FPSO John Agyekum Kufuor in June 2018 to a Japanese consortium brought positive earnings to the company – but further than that it also paved the way for us to enter into a 10-year binding MoU with Sumitomo Corporation, one of the members of this consortium, on the future collaboration of FPSO and FSO projects. Forging of long-term strategic alliances with strong counterparties is one of Yinson’s key credit strengths, and we will continue to be on the lookout for such opportunities.
This quarter also saw Yinson and First E&P working towards the conclusion of our Head Of Terms agreement for the supply and charter of a FPSO unit for the Anyala and Madu fields in offshore Nigeria. The agreement is a testament to the industry’s growing confidence in Yinson’s ability to deliver quality solutions for offshore oil and gas production.
Further, the Group has declared an interim single-tier dividend of 4.0 sen per ordinary share. The dividend is a reflection of the Board’s confidence in Yinson and our commitment to rewarding our shareholders for their ownership.
The most recent report from Energy Maritime Associates confirms a strong start in the FPSO industry this year with nine projects awarded, and and further 30 potential projects over the next 12 months. With the demand of FPSO at its highest since 2012, we remain optimistic that we will be able to continue growing our business for long term sustainability.”
