348 YINSON HOLDINGS BERHAD ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2022 46. Summary of effects of dilution and disposal of companies (continued) 2021 (continued) Pursuant to the Share Subscription Agreement, YBCPL allotted and issued to JOFI 3,340,000 new ordinary shares representing 25% of the enlarged issued share capital of YBCPL (“Subscription Shares”) for a cash consideration of USD3 million. On 28 May 2020, YBCPL further allotted and issued to JOFI 21,660,000 new ordinary shares for a cash consideration of USD22 million. Following the issuance of 25,000,000 new ordinary shares for a total cash consideration of USD25 million, the Group still controls YBCPL, retaining an effective equity interest in YBCPL of 75%. This resulted in an increase in non-controlling interest of USD25 million (RM107 million) (representing 25% interest) and an increase in equity attributable to the owners of the Company of USD0.4 million (RM2 million). The effect of changes in the ownership interest of YBCPL on the equity attributable to owners of the Company during the year is summarised as follows: RM million Consideration received from non-controlling interests 109 Less: Carrying amount of interests in subsidiary disposed (107) Excess of consideration received recognised in parent’s equity 2 47. Impact of Russia-Ukraine conflict The current geopolitical tensions between Russia and Ukraine, alongside the imposition of international sanctions, have a pervasive economic impact, not only on businesses within Russia and Ukraine, but also globally where businesses engage in economic activities that might be affected by the recent developments. The Group does not have any economic activities based within Russia or Ukraine and as such is not expected to be directly affected. However, given the global nature of financial markets and international supply chains, the disruption of economic activity could impact entities beyond the borders of Russia and Ukraine. At the date of these financial statements, the Group has assessed that the conflict does not have any material impact to the Group’s financial statements for the year ended 31 January 2022. However, as the conflict is still ongoing and with no clear outcome on the economic impact, the Group cannot reasonably ascertain the full extent of the probable impact on the Group’s financial performance for the future financial years. 48. Impact of the Covid-19 pandemic The World Health Organisation declared Covid-19 as a pandemic since 11 March 2020. Even with countries introducing their respective vaccination programmes, the pandemic situation is expected to remain a significant challenge to the global communities for the next 1 to 2 years, affecting business and social activities. Encouragingly, the Group’s business continuity plans have succeeded to ensure minimum disruption to its daily operations. Threats and uncertainties which stemmed from the pandemic are mitigated by the fact that the Group’s revenue stream comes primarily from long-term fixed priced contracts with reputable oil companies. Accordingly, the Covid-19 pandemic has not materially affected the financial performance, financial position, cash flows and liquidity of the Group in the current financial year. However, Covid-19 has brought on disruptions to supply chains globally, which has impacted construction activities for the Group’s conversion of FPSOAnna Nery during the current financial year. These impacts include travel and logistical restrictions, price inflation of materials and services, yard closures and yard capacity constraints. In order to mitigate these impacts to project execution, the project team worked closely with the client and contractors. Consequently, based on circumstances as at 31 January 2022, the conversion of FPSO Anna Nery is progressing as planned and delivery to the client is expected to be on schedule. The Group will 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 pandemic may further impact the Group’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence. These developments include the duration and severity of the outbreak, and the actions that may be required to contain the virus or treat its impact. In particular, the protracted duration and additional resources required to safely contain Covid-19 globally, could adversely impact the Group’s operations, work force, cash flows and financial position for the next financial year. Hence, without a firmly established plan for vaccine distribution in the countries which the Group operates, the related impact arising from Covid-19 cannot be reasonably estimated at this time for the financial year ending 31 January 2023.
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