248 YINSON HOLDINGS BERHAD ACCOUNTABILITY 34. LEASES (a) Finance lease receivables – the Group as lessor Group 2025 RM million 2024 RM million Minimum lease receivables: Within 1 year 1,154 1,167 Between 1-2 years 1,156 1,164 Between 2-3 years 1,144 1,168 Between 3-4 years 1,139 1,151 Between 4-5 years 1,123 1,145 Later than 5 years 16,233 17,789 Total undiscounted lease payments 21,949 23,584 Less: Future finance income (13,085) (14,986) Net investment in finance lease 8,864 8,598 Current 186 159 Non-current 8,678 8,439 8,864 8,598 (i) In the financial year ended 31 January 2025, a subsidiary of the Company commenced a finance lease for the chartering of an FPSO (FPSO Maria Quitéria) to a third party for a firm charter period of 22.5 years. As a result, the contract asset of RM7,043 million was reclassified to finance lease receivables. Finance lease income on the net investment in the lease during the financial year was RM364 million (Note 6), of which RM138 million related to gain on re-measurement of finance lease receivables arising from effect of charter day rate escalation determined at effective dates as stipulated in the charter contracts and RM7 million related to variable lease payments which are not included in the measurement of the net investment in the lease. (ii) In the financial year ended 31 January 2024, a subsidiary of the Company commenced a finance lease for the chartering of an FPSO (FPSO Anna Nery) to a third party for a firm charter period of 25 years. As a result, the contract asset of RM5,645 million was reclassified to finance lease receivables. Finance lease income on the net investment in the lease during the financial year was RM810 million (2024: RM960 million) (Note 6), of which RM79 million (2024: RM426 million) related to gain on re-measurement of finance lease receivables arising from effect of charter day rate escalation determined at effective dates as stipulated in the charter contracts and RM6 million (2024: RM36 million) related to variable lease payments which are not included in the measurement of the net investment in the lease. As at 31 January 2025, the finance lease receivables balances were deconsolidated from the Group’s balance sheet (refer to Note 48(a) for details). (iii) In the financial year ended 31 January 2021, a subsidiary of the Company has commenced a finance lease for the chartering of an FPSO (FPSO Abigail Joseph) to a third party for a lease term of 12 years, comprising a firm charter period of 7 years and extension option periods of 5 years. During the current financial year, the lease term has been revised to 16 years following a modification in the contract terms, comprising a firm charter period of 14 years and extension option periods of 2 years. Management has assessed that it is reasonably certain for the charterer to exercise the extension options for 2 years as set out in the charter agreement. The revision of the lease term represents a modification of the lease and the resulting gain from the re-measurement of finance lease receivables has been recognised in profit or loss. Finance income on the net investment in the lease during the financial year was RM349 million (2024: RM193 million) (Note 6), of which RM167 million (2024: NIL) related to gain on re-measurement of finance lease receivables arising from the lease extension for FPSO Abigail Joseph and RM63 million (2024: RM66 million) related to variable lease payments which are not included in the measurement of the net investment in the lease. (iv) In the financial year ended 31 January 2020, a subsidiary of the Company commenced a finance lease for the chartering of a FPSO (FPSO Helang) to a third party for a lease term of 18 years comprising of a firm charter period of 8 years and annual extension option periods of up to 10 years. Finance income on the net investment in the lease during the financial year was RM161 million (2024: RM167 million) (Note 6), of which RM26 million (2024: RM26 million) related to variable lease payments which are not included in the measurement of the net investment in the lease.
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