ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 199 INTEGRATED ANNUAL REPORT 2026 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 Bouvardia B.V. from Atlanta Field B.V. by way of exercising the call option. The Group has assessed that, based on the contractual arrangement, the Group has no control over the designated FPSO (FPSO Atlanta) as the use, design, and specifications of the FPSO are determined by the customer, Brava Energia S.A., formerly known as Energia S.A. (“Brava”). Brava is able to direct the use of the FPSO and control the economic benefits associated with the FPSO. Brava 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 Brava. Accordingly, there is no identified asset controlled by the Group. Hence, the entire contractual arrangement with Bouvardia B.V. in respect of FPSO Atlanta is determined to be a construction service arrangement in accordance with MFRS 15 Revenue from Contracts with Customers. The amounts previously received by the Group from Bouvardia B.V. are, in substance, prepayments from Bouvardia B.V., to fund the construction of the FPSO. Upon exercise of the call option, these prepayments were converted into a project loan to be repaid by the Group to Brava over the charter period of 15 years at a fixed interest rate of 6%. Accordingly, the future principal and interest repayments under the project loan are accounted for as a consideration payable to Brava. The consideration payable to Brava is offset against the contract asset arising from the fulfilment of the EPCI performance obligation. On 31 December 2024, Bouvardia B.V. 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. On 6 August 2025, Bouvardia B.V. has successfully completed the buy-out of the project loan related to FPSO Atlanta from Brava. At the time of completion of the transaction, the principal amount outstanding under the project loan was approximately USD408.8 million (equivalent to RM1,735 million), for which a total cash consideration of approximately USD255.5 million (equivalent to RM1,084 million) together with approximately USD1.9 million (equivalent to RM8 million) in accrued interest, was paid. The gain arising from the buy-out of the project loan of USD153 million (equivalent to RM651 million) was accounted for as a change in transaction price in accordance with MFRS 15 Revenue from Contracts with Customers. The amount allocated to the satisfied EPCIC performance obligation of the contractual arrangement with Brava of USD80 million (equivalent to RM340 million) was recognised as additional revenue immediately on a cumulative catch-up basis in the current financial year. The amount related to the unsatisfied performance obligations of USD73 million (equivalent to RM311 million) was deferred and will be recognised over the remaining charter period of 14.5 years. The net contract asset balance in respect of FPSO Atlanta included within contract assets as at 31 January 2026 and 31 January 2025 was determined as follows: Group 2026 2025 RM million RM million Cumulative revenue recognised for EPCI performance obligation less progress billings to date* 2,399 2,362 Less: Consideration payable to Brava - (1,858) Less: Gain from buy-out of the project loan (651) - Add: Accretion of interest on contract assets (Note 8(a)) 152 11 Add: Deferred unsatisfied performance obligations recognised 10 - Exchange differences (142) (19) Net balance included within contract assets 1,768 496 * Included in the financial year ended 31 January 2026 is RM340 million relating to revenue recognised from satisfied EPCI performance obligations.
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