PETALING JAYA: Yinson Holdings Bhd has been selected by France-based oil major company Total to perform front-end engineering design (pre-Feed) for two floating production storage and offloading (FPSO) projects in Angola and Suriname.
In a statement yesterday, Yinson said the pre-Feed award is the group’s first project with Total and it is partnering with Technip Energies, which will perform the topside design for the project.
“The pre-Feed will provide Total with technical and commercial lease and operate proposals, including solutions to reduce emissions, within 32 weeks from the agreement date.
“The topside design will be performed by Technip Energies, a key partner with Yinson, for the pre-Feed, ” Yinson said.
Yinson chief executive officer of offshore production Flemming Grønnegaard said the pre-Feed awards would mark the start of a fruitful, long-term working relationship between the group and Total.
“We are currently building an FPSO for the Campos Basin in South America and have been operating in the African region since 1995. We hope that we will be able to further contribute to the production of energy in these regions through these projects and many more to come, ” he said.
Maybank IB Research described Yinson as one of the profitable FPSO operators globally in terms of return on equity.
“Unlike its peers, Yinson’s FPSO contracts are generally more bankable (strong counterparties), providing steady visibility (long-term charters, termination protection) with reasonable project internal rate of returns.
“The company has an experienced, lean management team with strong execution capabilities, ” the research house said.
Yinson is the sixth largest independent FPSO leasing entity worldwide in terms of fleet size with an operating presence in Asia and Africa, with offshore support vessel (OSV) as its complementary business.
Maybank IB said despite Yinson’s heavy capital expenditure, its net gearing has been “manageable”, reflecting its prudent financial management and cash flow generation from its FPSO operations.
It expects Yinson could win new contracts on the back of 2-3 firm tenders that will contribute to a significant jump in earnings.
On Yinson’s first foray in autonomous vehicles through its investment in startup MooVita that was announced on Tuesday, Maybank IB said the venture would accelerate the group’s energy transition agenda.
It expects more investment in this space moving forward.
“The e-mobility space is currently at an embryonic growth rate and is expected to be a key feature over the next decade as countries evolve into low carbon economies.
“That said, Yinson has been in the mobility space in the past (pre-O&G ops) and still is under the founder Lim’s family private capacity involving logistics, trucks, and public bus services. “We do not rule out the possibility of Yinson investing further into this space, especially the much untapped Asean market, which is progressively transiting into electric vehicles, ” it said.