KUALA LUMPUR (March 27): Yinson Holdings Bhd saw its net profit increase 6% to RM60.7 million for the fourth financial quarter ended Jan 31, 2019 (4QFY19) from RM57.14 million in the previous year’s corresponding quarter.

Quarterly revenue grew 12% to RM287.6 million from RM257.39 million a year earlier.

The group proposed a final dividend of two sen per share for the year.

For the full financial year ended Jan 31, 2019 (FY19), its net profit fell 20% to RM234.9 million from RM292.18 million in the previous year, while revenue increased 14% to RM1.03 billion from RM910.16 million.

The decline in net profit was attributed to higher impairment loss on trade and receivables, impairment loss on tax recoverable, higher depreciation and amortisation, impairment loss on investment in a joint venture and lower share of results in joint ventures.

The group also saw lower share of results from its joint ventures and higher tax expenses.

“Should the results not be affected by impairment loss on property, plant and equipment and impairment loss on investment in a joint venture, the group’s profit after tax for the current financial year under review would be RM310.3 million compared with RM324.87 million for the corresponding financial year ended Jan 31, 2018,” it said.

The group said its offshore & marine segment reported better contribution amid full-year bareboat chartering contribution from FPSO John Agyekum Kufuor.

“The segment results increased by RM31.95 million mainly due to higher recorded revenue but offset by higher impairment loss on trade and other receivables, impairment loss on tax recoverable and net unfavourable foreign exchange movement,” said Yinson.

Its other operations reported lower loss of RM3.94 million, compared with the loss of RM63.1 million in the previous financial year, driven by favourable foreign exchange movement and lower fair value loss on investment properties, which was partly mitigated by higher administrative overheads and impairment loss on investment in a joint venture.

Looking ahead, the group said the outlook for the industry remains challenging amid new alternative energy resources and the risk appetite of financial institutions for the oil and gas sector.

It said the global economy is exposed to risks of increasing trade protectionism and uncertain geopolitical conditions, which translates to higher downside risk, although Yinson noted that bidding activities have picked up in the FPSO market recently.

“Amid the challenging global economic environment and the volatility of other currencies against the US dollar, the group shall strive to achieve satisfactory results for the next financial year ending Jan 31, 2020,” said the group.

Yinson fell 2 sen or 0.43% to RM4.59, giving it a market capitalisation of RM5.02 billion.