PETALING JAYA: Yinson Holdings’ net profit fell 44.2% to RM41.14 million for the second quarter ended July 31, 2019 from RM73.67 million recorded in the same quarter of the previous year, due to net unfavorable foreign exchange movement of RM5.6 million, impairment loss on property, plant and equipment of RM4.86 million and higher finance costs of RM4.96 million.
However, it was partially set-off by improved profit contribution on lower operating expenditure and lower impairment loss on advances to a joint venture, trade and other receivables of RM2.12 million.
Its revenue declined 13.4% to RM213.44 million from RM246.54 million reported previously.
The group has declared an interim dividend of 4 sen for the quarter under review.
For a six-month period, Yinson reported a net profit of RM91 million, a 32.1% drop from RM134.1 million reported in the same period a year ago on the back of a 12.3% fall in revenue to RM422.44 million from RM481.72 million.
The group told Bursa Malaysia that revenue from its offshore & marine segment for the six-month period fell to RM410.35 million from RM480.88 million, mainly due to the effect of cessation of revenue contribution from FPSO Allan’s charter at Olowi field in Gabon, impairment loss on advances to a joint venture and net unfavorable foreign exchange movement.
Meanwhile, the group’s other business segment turned into a profit of RM9.64 million compared to a loss of RM120,000 recorded previously, mainly driven by higher interest income, absence of fair value loss on investment properties and lower fair value loss on other investments.
Yinson said the long-term outlook in the oil and gas industry remains challenging with the emergence of new alternative energy resources and financial institutions risk appetite towards the sector.
“Nevertheless, the management is optimistic that the industry will replenish its production capacity with new FPSO awards in current financial year to counter the lagging investment effect from the past years.”
Amid the challenging global economic environment and the volatility of other currencies against US dollar, the group said it will strive to achieve satisfactory results for the financial year ending Jan 31, 2020.
