Yinson gets second extension on Addax contract worth RM531m

by **Cals** Tue 20 Oct 2015, 00:16

Yinson gets second extension on Addax contract worth RM531m

By Supriya Surendran / theedgemarkets.com | October 19, 2015 : 7:04 PM MYT
KUALA LUMPUR (Oct 19): [size=16]Addax Petroleum Development (Nigeria) Ltd has further extended its contract for the charter of one floating production, storage and offloading vessel (FPSO), called FPSO Adoon, with Adoon Pte Ltd, an indirect wholly-owned subsidiary of Yinson Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 1.90).

In a filing with Bursa Malaysia today, Yinson said Addax has extended for the second time its contract for the charter of FPSO Adoon by three years, with effect from Oct 17, 2015 to Oct 16, 2018, and that the extension is valued at approximately US$129 million (RM531 million).

The original contract for the FPSO was awarded on Oct 17, 2006, for a firm eight-year period with option to renew up to eight years and the said original contract had expired on Oct 16, 2014.

The first extension of the contract was agreed by both parties from Oct 17, 2014 to Oct 16, 2015, worth US$39 million.

FPSO Adoon has been operating on the Antan field in Nigeria throughout the contract period.

Yinson said that the second extension of the contract is expected to contribute positively to the revenue and earnings of the group for the financial year ending Jan 31, 2016 and the financial periods thereafter for the duration of the extension.

Its shares closed up 4 sen, or 1.38% to RM2.93 today, bringing a market capitalisation of RM3.16 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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