Quick take: Yinson gains 2.33% on contract extension

KUALA LUMPUR: Shares of Yinson Holdings Bhd rose in active trading on Wednesday morning, after the company announced that it had secured a four-year extension of its floating production storage and offloading (FPSO) charter contract worth US$137.5mil (RM574.1mil).

The offshore oil and gas services provider rose 2.33%, or 12 sen to RM5.27, making it one of the top gainers on Bursa Malaysia. Year-to-date, it has appreciated by 26.8%.

Yinson-CW rose 5.71%, or one sen to 18.5 sen while Yinson-CY added 9.09%, or one sen to 12 sen.

Yinson announced that its indirect wholly-owned subsidiary Adoon Pte Ltd has entered into an addendum with Addax Petroleum Development (Nigeria) Ltd to further extend the contract for the charter of FPSO Adoon with retrospective effect from Oct 17, 2018 to Oct 16, 2022.

The original contract for the FPSO Adoon was awarded on Oct 17, 2006, for a period of eight years, with an option to renew for up to eight years.

The contract expired on Oct 16, 2014 and was first extended for a year to Oct 16, 2015 and thereafter, for another three years to Oct 16, 2018.