“Our many activities on the FPSO front are a reflection of the industry’s healthy recovery post-pandemic.” - Lim Han Weng
PETALING JAYA: Yinson Holdings Bhd
expects the outlook for oil and natural gas to remain significantly strong over the longer term.
In a filing with Bursa Malaysia yesterday, the company noted that global energy demand has been increasing and outstripping supply, causing strain on the global energy supply chain.
Yinson, which operates floating production, storage and offloading (FPSO) vessels for charter, said this has contributed to a steady rise in oil prices since 2021, which then surged exponentially from February 2022 due to the geopolitical conflict between Russia and Ukraine.
“Although the higher oil price encourages business activities within the oil and gas industry, the conflict is of economic concern,” Yinson said, adding that the sanctions on Russia and Belarus are causing further inflation and supply chain bottlenecks on the global economy, which has already been straining to adjust to the challenges stemming from the Covid-19 pandemic.
For the second quarter of its financial year ending Jan 31, 2023 (2Q23), Yinson’s revenue rose 54% year-on-year (y-o-y) to RM1.62bil.
According to Yinson, the increase was mainly due to the commencement of engineering, procurement, construction, installation and commissioning (EPCIC) business activities for FPSO Maria Quiteria and FPSO Atlanta, along with higher contributions from FPSO operations during the period under review.
Yinson’s net profit increased 13.5% y-o-y to RM143mil, mainly due to the contributions from EPCIC business activities and FPSO operations, which partially offset the higher operational overheads and financing costs.
Earnings per share in 2Q23 stood at 6.20 sen, compared with 5.60 sen in the previous corresponding period.
Commenting on the robust results, Yinson group executive chairman Lim Han Weng said the consistency of Yinson’s performance throughout the volatility of recent years was testament to the company’s sound business model and ability to adapt to change.
“Our many activities on the FPSO front are a reflection of the industry’s healthy recovery post-pandemic,” Lim said.
Commenting on future developments, Lim said the group was in progress for other opportunities in West Africa.
“We look forward to sharing more news on these developments very soon,” he said.
As for the first half of its financial year 2023 (1H23), Yinson’s revenue and net profit were up by 28.3% and 10.5% y-o-y to RM2.63bil and RM263mil, respectively.
This was mainly attributable to the higher contribution from the group’s FPSO operations that was largely driven by strengthening oil prices and higher contribution from its EPCIC business activities.
The group has declared an interim single-tier dividend of one sen per share for FY23, amounting to about RM29mil, with the entitlement and payable dates being Nov 30 and Dec 16, respectively.
Yinson shares closed four sen higher at RM2.30 yesterday, giving it a market capitalisation of RM6.68bil.
