Yinson earnings drop 17.5% in Q1

26 Jun 2019 / 21:21 H.

PETALING JAYA: Yinson Holdings Bhd’s net profit for the first quarter ended April 30, 2019 fell 17.5% to RM49.85 million from RM60.43 million a year ago on higher impairment loss on trade and other receivables of RM2.8 million and higher tax expenses of RM3.1 million.

Revenue fell by 11.1% to RM209 million from RM235.18 million as a result of the charter for floating, production, storage and offloading (FPSO) Allan in Gabon ending in the last financial year.

Yinson group executive chairman Lim Han Weng said overall, it is 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. Addax Petroleum has extended our contract for FPSO Adoon for an additional four years to Oct 16, 2022 with an estimated contract value of US$137.5 million (RM574.1 million),“ Lim said in a statement.

Yinson recently participated in a number of FPSO project tenders in a bid to broaden its 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.”

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