Yinson rises on firm earnings

KUALA LUMPUR: Shares in Yinson Holdings Bhd rose in early trade Friday after it reported earnings that beat analysts’ expectations.

The energy infrastructure and technology company added 1.3%, or three sen to RM2.33 at 9.36 am. In the past one month, the counter rose 8.37%, or 18 sen.

Yinson’s net profit in the second quarter ended July 31, 2022 (2QFY23) rose 13.49% to RM143mil from RM126mil a year ago.

Revenue for the quarter jumped 53.7% to RM1.62nil from RM1.05bil last year.

It declared an interim dividend of one sen per share, with an ex-date of Nov 29 and payable on Dec 16.

Kenanga Research said Yinson’s 1HFY23 results beat expectations, thanks to stronger engineering, procurement, construction, installation and commissioning (EPCIC) profits with the commencement of works on FPSO Atlanta.

“Its 1HFY23 core PATAMI of RM250mil came in above expectations at 60% and 61% of our full-year forecast and full-year consensus estimates respectively. The variance against our forecast came largely from stronger EPCIC profits with the commencement of works for FPSO Atlanta during the quarter,” it said.

The research house said that eyeing further growth opportunities, the comnpany is reportedly the front-runner for Eni’s Agogo project, offshore Angola.

“We raise our FY23F/FY24F earnings by 15%/5% to account for stronger EPCIC profit assumptions,” it said.

Kenanga has maintained an “outperform” on Yinson with a higher target price of RM3.15 from RM2.50 previously.

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Yinson , earnings , Kenanga


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