Yinson Annual Report 2020

325 Annual Report 2020 48. Subsequent events (continued) (f) (continued) This transaction is in line with the Group’s strategies for its renewables division, established in 2019. The acquisition supports the Company’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets. (g) On 14 November 2019, a subsidiary of the Group entered into a USD800 million refinancing loan agreement with 13 local and global banks to refinance FPSO John Agyekum Kufuor, which is currently operating in the OCTP Block, offshore Ghana. The FPSO John Agyekum Kufuor is chartered to Eni Ghana Exploration & Production Ltd.. The loan was fully drawn down on 14 April 2020, with a tenure of 12 years. (h) In late 2019, a novel strain of coronavirus (subsequently known as COVID-19), was initially reported in Wuhan, China. While the outbreak was initially largely concentrated in China, it spread to several other countries. On 11 March 2020, the World Health Organisation declared COVID-19 as a pandemic, and it has since continued to spread throughout the globe. Many countries, including Malaysia, had significant governmental measures being implemented to control the spread of the virus, including temporary closure of businesses, severe restrictions on travel and the movement of people, and other material limitations on the conduct of business. These measures have resulted in work stoppages and other disruptions. In response to this, the Group activated its business continuity plan to minimise the disruption to its daily operations. The plan leveraged on information technology and digital infrastructure, allowing employees to communicate and collaborate remotely, both onshore and offshore. As a result, onshore based employees worked from home and were able to carry out their day-to-day tasks whilst offshore personnel underwent strict quarantine procedures before going offshore. In addition, the Group put in place additional health screenings, distributed personal protective equipment and conducted awareness initiatives to minimise disruptions. COVID-19 poses a significant threat to the global oil and gas industry. The drastic actions taken to reduce the spread of the virus as well as the resultant global economic shutdown has seen a glut of oil supply and a sudden drop in oil demand. These have resulted in global oil prices declining to the current oil prices of around USD30 per barrel. Oil prices may further decline if the economic downturn is further exacerbated by the continuing spread of COVID-19. Whilst these are mitigated by the fact that the Group’s revenue comes primarily from long term fixed priced contracts with reputable oil companies, the Group will nevertheless continue to monitor and assess macro developments in order to take pre-emptive and proactive measures to mitigate adverse impacts, as and when necessary. The extent to which the COVID-19 impacts the Group’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the outbreak, and the actions that may be required to contain COVID-19 or treat its impact. In particular, the extent of time and resources required to safely contain COVID-19 globally, could adversely impact the Group’s operations, work force, cash flows and financial position for the coming financial year. As a result, without a vaccine, the related impact arising from COVID-19 cannot be reasonably estimated at this time for the financial year ending 31 January 2021. 49. Authorisation of financial statements for issue The financial statements for the financial year ended 31 January 2020 were authorised for issue in accordance with a resolution of the Board of Directors on 15 May 2020.