Taiyuan Heavy Industry: Newly signed drilling platform lease contract causes impairment losses of 480 million yuan
Beijing News On the evening of January 16, Taiyuan Heavy Industry issued an announcement saying that the company’s wholly-owned subsidiary, Binhai Company, and Mexico’s PMM Company had signed a TZ400 drilling platform lease service contract. The contract is a bareboat leasing model with a fixed term of 600 days + an optional term of 360 days * 2, and PMM has the right to propose to purchase the platform 30 days before the end of the second optional term. If the above-mentioned lease sale is realized, the total revenue of Binhai Company will be 125 million US dollars.
According to the company, as the platform is the company’s first set of products developed in a new industry sector, the initial investment was about 1.33 billion yuan. Taking into account factors such as international oil price trends, future industry trends, market structure and demand changes, future price / rent fluctuations, utilization rate changes, and cost fluctuations, the platform’s rental sales revenue is different from previous input costs. Based on the current preliminary calculations, the performance of this contract is expected to increase the company’s impairment loss in 2019 by approximately RMB 480 million, and the performance of this contract is expected to cause the company’s 2019 performance loss.
Edit Sun Yong