202 YINSON HOLDINGS BERHAD ACCOUNTABILITY 6. REVENUE (CONTINUED) (b) Contract balances (continued) (iii) On 31 July 2023, Yinson Bouvardia Holdings Pte. Ltd., an indirect wholly owned subsidiary of the Company, has completed the acquisition of 100% equity interest in AFPS B.V. (“AFPS”) from Atlanta Field B.V. (“AFBV”) by way of exercising the call option with a purchase cash consideration of USD22 million (approximately RM99.3 million). Based on the contractual arrangement with AFPS, the Group has no control over the designated FPSO (FPSO Atlanta) as the use, design, and specifications of the FPSO are determined by AFPS. The customer, Enauta Energia S.A. (“Enauta”) is able to direct the use of the FPSO and control the economic benefits associated with the FPSO. Enauta is also able to prevent others from accessing the FPSO and has stipulated that the FPSO is not to be charged, leased, sold or transferred to any other party without the consent of Enauta. Accordingly, there is no identified asset controlled by the Group. Hence, the entire contractual arrangement with AFPS in respect of FPSO Atlanta is determined to be a construction service arrangement in accordance with MFRS 15 Revenue from Contracts with Customers. Upon the exercise of the call option, the total transaction price for the contractual arrangement with AFPS was re-assessed and revised to reflect the future cash flows from the charter rates to be received over the 15-year charter period in accordance with the charter contract with Enauta. The amounts previously received by the Group from AFPS are, in substance, prepayments from AFPS, to fund the construction of the FPSO. Upon exercise of the call option, these prepayments were converted into a loan to be repaid by the Group to Enauta over the charter period of 15 years at a fixed interest rate of 6%. Accordingly, the future principal and interest repayments under the loan are accounted for as a consideration payable to Enauta. The consideration payable to Enauta is offset against the contract asset arising from the fulfilment of the EPCI performance obligation. In the financial year ended 31 January 2024, the net cash outflow arising from the acquisition was USD17.2 million (approximately RM77.5 million), included within cash flows from operating activities, after deducting cash and cash equivalents held by AFPS of USD4.8 million (approximately RM21.8 million). The net contract asset balance in respect of FPSO Atlanta included within contract assets as at 31 January 2025 was determined as follows: Group 2025 RM million 2024 RM million Cumulative revenue recognised for EPCI performance obligation less progress billings to date 2,373 1,706 Less: Consideration payable to Enauta (1,858) (1,559) Net balance included within contract assets 515 147 On 31 December 2024, AFPS commenced the charter of the FPSO (FPSO Atlanta) to a third party for a lease term of 20 years, comprising a firm charter period of 15 years and extension option periods of 5 years.
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