The firm charter period for the Armada Kraken FPSO concludes at the end of March 2025 with annual options to renew up to 2042. The charter rate during the optional extension period is specified in the charter agreement and consistent with industry practice, is approximately 70% lower than the charter rate during the firm period. This is because the project finance loan obtained to finance the conversion of the FPSO would have been fully repaid during the firm period. The Armada Kraken FPSO project finance loan was fully repaid in March 2023.

Even though there has been no change to the contracted charter cash flows, while the charter revenue reduces significantly during the optional extension period, the vessel cost continues to be depreciated on a straight-line basis, in accordance with the accounting policies promulgated by the International Accounting Standards Board and thus adopted by the Group. On that basis, the recoverable amount will be lower than the carrying value towards the end of the firm period, especially when the applicable discount rate to determine the VIU increases. Bla bla bla...

Now we know why the share price could not recover even after the transformer failure fixed. Good luck, man! Good luck!