MISC Annual Report 2019

18. INVESTMENTS IN JOINT VENTURES Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Unquoted shares in Malaysia, at cost 176,184 178,016 170,762 172,596 Unquoted shares outside Malaysia, at cost 176,124 161,655 24,622 24,892 352,308 339,671 195,384 197,488 Share of post-acquisition profits 450,736 485,687 – – Share of other post-acquisition reserves 201,819 208,908 – – 1,004,863 1,034,266 195,384 197,488 Less: Accumulated impairment loss (79,148) (79,195) – – Carrying amount of the investment 925,715 955,071 195,384 197,488 a) During the current financial year, the Corporation through its subsidiary, Asia LNG Transport Dua Sdn. Bhd. (“ALT Dua”), a 51%-owned subsidiary of the Corporation entered into a shareholders’ agreement between the Corporation and Mitsubishi Corporation (“MC”) and Nippon Yusen Kabushiki Kaisha (“NYK”) for the acquisition of shares in Diamond LNG Shipping 6 Ltd. (“DLS6”), a company incorporated in The Bahamas, from NYK for a cash consideration of RM15,949,000. Subsequent thereto, DLS6 became a 50%-owned joint venture company of ALT Dua and 25% owned by MC and NYK respectively. b) During the current financial year, the Corporation entered into a shareholders agreement between the Corporation and Avenir LNG Limited (“Avenir”) to incorporate a joint venture company. Pursuant to that, Future Horizon (L) Pte. Ltd. (“Future Horizon”), then a wholly- owned subsidiary of the Corporation had increased its issued and paid up capital by the issuance and allotment of new ordinary shares to the Corporation and Avenir. Upon completion of the allotment of shares, Future Horizon became a 51%-owned joint venture company of the Corporation. The total investment in Future Horizon by the Corporation amounts to RM42,000. c) The Group has discontinued recognising its share of losses in a joint venture as the share of losses exceeds the Group’s interest in this joint venture. As such, the Group did not recognise its share of losses of this joint venture in the current year and the Group’s cumulative share of unrecognised losses in this joint venture amounting to RM4,244,000 (2018: RM4,295,000). d) In the previous financial year, the Group had on 20 December 2018 surrendered 16,000,000 Redeemable Convertible Preference Shares (“RCPS”) in Vietnam Offshore Floating Terminal (Ruby) Limited at the redemption price of USD1.00 per RCPS, equivalent to a total cash redemption sum of USD16,000,000 (RM64,548,000). The RCPS surrendered are cancelled and may not be reissued. Details of the joint ventures are disclosed in Note 41. The material joint ventures are Malaysia Deepwater Floating Terminal (Kikeh) Limited (“MDFT”) and Malaysia Vietnam Offshore Terminal (L) Limited (“MVOT”). The following tables summarise the financial information of the Group’s material joint ventures, as adjusted for any differences in accounting policies and reconciles the information to the carrying amount of the Group’s interest in joint ventures. 18. INVESTMENTS IN JOINT VENTURES (CONT’D.) The summarised financial information of the material joint ventures are as follows: MDFT MVOT RM’000 RM’000 As at 31 December 2019 Non-current assets 1,034,353 274,491 Current assets 13,604 417,665 Cash and cash equivalents 227 51,065 Non-current liabilities (6,041) (165,022) Current liabilities (68,739) – Net assets 973,404 578,199 Year ended 31 December 2019 Profit after taxation/total comprehensive income 196,323 92,462 Included in the total comprehensive income is: Revenue 400,512 489,521 Other income – 65 Depreciation and amortisation (198,218) (564) Interest income 91 234 Income tax expense (6,073) (6,917) As at 31 December 2018 Non-current assets 1,244,019 305,956 Current assets 722 66,715 Cash and cash equivalents 2,942 136,011 Non-current liabilities (54,043) – Current liabilities (30,891) (16,944) Net assets 1,162,749 491,738 Year ended 31 December 2018 Profit after taxation/total comprehensive income 151,161 124,099 Included in the total comprehensive income is: Revenue 344,592 111,925 Other income – 68,026 Depreciation and amortisation (193,036) – Interest income 54 489 Interest expense – (311) Income tax expense (20) (1,193) NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 310 311