Yinson's FPSO vessel John Agyekum Kufuor that has been deployed to Ghana.
KUALA LUMPUR: Yinson Holdings Bhd
recorded a strong growth in earnings in its first financial quarter ended April 30, shrugging off the bad news during the period that an associate firm's RM3.3bil charter contract was terminated.
The provider of vessels for the offshore oil and gas sector posted earnings of RM60.29mil for the quarter, almost triple the RM22.38mil recorded a year earlier.
Announcing its interim financial results to Bursa Malaysia on Monday, Yinson said the 169% jump in profit was achieved on 49% higher revenue of RM172.41mil.
“The increase arose mainly from higher marine business and the stronger US dollar which resulted in the higher revenue on translation into the ringgit,” it said.
The share of results from joint ventures and associates also improved by a combined RM3.55mil due mainly to the favourable US/ringgit conversion rate.
Yinson’s better profit was contributed by lower net unfavourable foreign exchange movement of RM10.17mil as well.
“Despite the challenging oil and gas business environment, we are pleased to report a strong start to FY18 (financial year ending Jan 31, 2018) with an overall positive first half of year 2017,” group executive chairman Lim Han Weng said in a press statement.
“Since the streamlining of our business operations as a full-fledged FPSO (floating, production, storage and offloading solutions) company, the group have been taking serious measures to fortify our operational efficiencies in terms of costing and management which has led the group’s growth in a profitable and sustainable manner.”
Commenting on the early termination of the seven-year contract awarded to 49%-owned PTSC Asia Pacific Pte Ltd (the contract will end this month with four years remaining), Lim said Yinson’s contracting model had proven to be resilient.
This was because of “a strong counterparty coupled with solid termination mitigation terms that allowed us to be entitled to an early termination payment,” he explained.
Lim said Yinson was also positive on the redeployment of the vessel, FPSO PTSC Lam Son, in Vietnam despite the liquidation of the oil field operator, Lam Son Joint Operating Co.