201 INTEGRATED ANNUAL REPORT 2025 ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 6. REVENUE (CONTINUED) (b) Contract balances The Group has recognised the following contract assets and liabilities: Group 2025 RM million 2024 RM million Contract assets (Note (b)(i)) Current 518 341 Non-current 5,183 9,294 5,701 9,635 Contract liabilities (Note (b)(ii)) Current 89 55 Non-current 209 255 298 310 (i) Contract assets Contract assets primarily relate to the Group’s right to consideration for work completed but not yet billed at reporting date on ongoing EPCIC contracts. Bareboat charter payments received during the lease period will be allocated towards the settlement of the contract assets related to the EPCIC contracts. During the current financial year, the contract assets decreased mainly due to the following: • The achievement of first oil for FPSO Maria Quitéria on 15 October 2024 which resulted in the reclassification from contract assets to finance lease receivables of RM7,043 million (Note 34(a)(i)); and • The progress billings of RM178 million, which were recognised as trade receivables for an FPSO project under construction; offset by • The construction revenue recognised for EPCIC contracts amounting to RM4,075 million. (ii) Contract liabilities Contract liabilities primarily comprise the following: • Charter income received in advance of RM228 million (2024: RM279 million) in relation to FPSO JAK, which is deferred and amortised on a straight-line basis over the contract period. As at 31 January 2025, the amounts classified as current and non-current were RM31 million and RM197 million (2024: RM34 million and RM245 million) respectively. The Group recognised revenue of RM32 million (2024: RM33 million) during the financial year, which was included in the contract liabilities as at 31 January 2024. • Advance consideration received of RM16 million for modification work on an FPSO vessel chartered to First Exploration and Petroleum Development Company Limited (“FEP”).
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