Yinson posts quarterly net profit of RM203mil

Yinson said global demand for clean, affordable and stable energy continues to grow.

PETALING JAYA: Yinson Holdings Bhd will continue to apply measures to prudently manage inflation and interest rate risks amid multiple macroeconomic challenges.

In a filing with Bursa Malaysia yesterday, the energy infrastructure and technology firm said it would apply hedging, effective forecasting, diversification of costs across geographical markets, factoring inflation risk into its contracts and strategic management of its inventories.

For the first quarter ended April 30, 2024, the company’s net profit dipped to RM203mil from RM208mil in the previous corresponding period, while revenue fell to RM2.21bil from RM3.02bil recorded a year earlier.

Basic earnings per share stood at 5.60 sen versus 6.10 sen previously.

Yinson has also recommended a final single-tier dividend of one sen per share in respect of the financial year ended Jan 31, 2024, amounting to RM30mil.

“The lower contribution from EPCIC business activities mainly arose from lower reported progress for the three floating production storage and offloading (FPSO) assets under construction.

“The actual progress of our projects under construction is in line with the group’s expectations,” it said.

Additionally, Yinson said global demand for clean, affordable and stable energy continues to grow, which has helped drive expansion in all its business units.

“The FPSO market continues to see strong demand for contractors like Yinson, who have an edge in emissions reduction technologies and a solid track record of on-time delivery and safety and operational performance.

“The demand for FPSOs is positive with the increase in project sanctions around the world particularly from Brazil, being the highest FPSO demand centre, followed by West Africa.”

Additionally, Yinson said the broader effect of elevated energy prices is the acceleration of the energy transition, as more investments pour into developing renewable and alternative sources of energy.

“This has supported the progress of our renewables pipeline in our core markets of Latin America, the Asia Pacific and Europe.”

Yinson said it remains focused on delivering on its commitments, which will continue into 2024.

“As FPSO Atlanta, FPSO Maria Quitéria and FPSO Agogo commence their charter periods over the next year or two, the group will transition into a phase of stable growth, where the group is poised to receive steady, contracted income streams for the next few decades.

“The strong focus on deliveries will also mean giving big investments a break until these deliverables are met and the start of the cash flows are seen.”

Going forward, Yinson said it remains optimistic about the future of its businesses, as it is confident that its investment into building foundations on sustainability will hold the group in good stead amid the many uncertainties.

“Such foundations have allowed us to be agile, making sound decisions that capitalise on the opportunities while managing risks.

“With our focus on delivery and sustainability, we believe that we can weather the ups and downs of the energy market while delivering sustained value to our stakeholders.”

Supported by its existing portfolio of long-term contracts, Yinson believes it can achieve satisfactory results for the financial year ending Jan 31, 2025.

Yinson has also recommended a final single tier dividend of one sen per ordinary share in respect of the financial year ended Jan 31, 2024, amounting to approximately RM30mil.

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