ACCOUNTABILITY | FINANCIAL STATEMENTS 287 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 33. LEASES (a) Finance lease receivables - the Group as lessor Group 2024 RM million 2023 RM million Minimum lease receivables: Within 1 year 1,167 346 Between 1-2 years 1,164 344 Between 2-3 years 1,168 340 Between 3-4 years 1,151 330 Between 4-5 years 1,145 317 Later than 5 years 17,789 2,416 Total undiscounted lease payments 23,584 4,093 Less: Future finance income (14,986) (1,998) Net investment in finance lease 8,598 2,095 Current 159 97 Non-current 8,439 1,998 8,598 2,095 (i) 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 assets 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 RM960 million (Note 6), of which RM426 million related to gain on remeasurement of finance lease receivables arising from effect of charter day rate escalation determined at effective dates as stipulated in the charter contracts and RM36 million relates to variable lease payments which are not included in the measurement of the net investment in the lease. The contract assets of RM5,645 million was reclassified to finance lease receivables during the financial year. (ii) 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. Management has assessed that it is reasonably certain for the charterer to exercise the extension options for 5 years out of the 8 years’ extension options as set out in the charter agreement. Finance income on the net investment in the lease during the financial year was RM193 million (2023: RM194 million) (Note 6), of which RM66 million (2023: RM66 million) related to variable lease payments which are not included in the measurement of the net investment in the lease. (iii) 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 RM167 million (Note 6) (2023: RM168 million), of which RM26 million (2023: 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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