Currency swings affect Yinson profit in Q2

  • Business
  • Wednesday, 25 Sep 2019

KUALA LUMPUR: Yinson Holdings Bhd posted lower earnings in the second quarter ended July 31, hit by unfavourable swings in the currency market and impairment loss on RM4mil worth of trade and receivables.

But the company is optimistic about its outlook, as two of its floating, production, storage and offloading (FPSO) projects are on track for deployment soon.

"We are optimistic the Group’s outlook will improve further as both of our FPSO projects namely FPSO Helang and FPSO Allan (to be renamed Abigail-Joseph) are on track and soon to be ready for deployment," group executive chairman Lim Han Weng said in a statement today.

Net profit in the July quarter fell 44% to RM41.1mil, or 3.75 sen a share compared with RM73.7mil, 6.75 sen a share made a year ago.

The decrease was due to revenue upon FPSO Allan’s charter cessation, net unfavorable forex movement of RM12.55mil and presence of impairment loss on trade and other receivables of RM4mil.

Revenue declined to RM213.4mil from RM246mil previously.

The company has declared an interim dividend payout of 4 sen a share.

"Our balance sheet remains strong with a total cash and bank balance equivalent of RM1.9bil, positioning us better for investments needed for future projects," Lim said.

The FPSO Helang has recently completed its testing at the Layang field, offshore Miri.

"We are on track to start production by end 2019," Lim said.

Meanwhile, the FPSO Allan is halfway through its conversion, on track for completion by the first quarter of 2020. Upon completion, it will be deployed to First E&P's Anyala and Madu fields, offshore Nigeria.

Lim said Yinson has been actively bidding in the Brazil and African region, including in several closed tenders. "Nonetheless, we continue to be on the lookout for opportunities while adhering closely to our business strategies,” he said.

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