Yinson unit’s contract with CNR terminated 3 months before expiry

The research house said developments on Yinson

KUALA LUMPUR: Yinson Holdings Bhd indirect unit Knock Allan Pte Ltd’s contract with CNR International (Olowi) Ltd, which was inked in 2006, has been terminated.

The oil and gas services company told Bursa Malaysia on Tuesday the contract, which was fixed for an initial 10 years from May 2009, was to have expired on April 30, 2019.

It said the notice of termination by CNR on the ground of convenience, entails payment of an early termination payment by CNR. CNR has confirmed the compensation.

“Contract termination pursuant to the notice of termination takes effect on the demobilisation date which is estimated to be Jan 31, 2019. The the exact date being subject to the coordinated execution of the required activities by CNR and Knock Allan,” it said.

Yinson added CNR would make the early termination payment to Knock Allan on Jan 31, 2019 in accordance with, and subject to, the terms of the contract.  

It also said the termination of the contract was not expected to have material adverse effect on the company’s earnings, net assets per share and gearing for the financial year ending Jan 31, 2019.