KUALA LUMPUR: Yinson Holdings Bhd
is optimistic over achieving satisfactory results in its current financial year, as earnings remain supported by its existing portfolio of long-term contracts.
As the group's Atlanta and Agogo floating production storage and offloading (FPSO) vessels commence their charter period over the coming year, the group expects to transition into a phase of stable growth with steady, contracted income streams over 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," it said in its outlook accompanying its results filing with Bursa Malaysia.
In the third quarter ended Oct 31, 2024, Yinson posted a net profit of RM200mil, down from RM248mil in the year-ago quarter, on the back of lower revenue.
However, the decline was partially offset by a one-off reversal of impairment of property, plant and equipment of RM18mil and gain on disposal of a subsidiary of RM163mil.
Earnings per share slipped to 6.2 sen from 7.3 sen previous.
The group reported a lower revenue of RM1.85bil against RM2.81bil in the year-ago quarter, mainly due to lower contribution from EPCIC business activities as a result of lower reported progress for the group’s FPSOs under construction in the current quarter.
In line with the performance, the board of directors declared a third interim dividend of one sen per share.
Shareholders will have the option to reinvest their dividend into new Yinson shares under the group's dividend reinvestment plan.
For the nine months period, Yinson registered a net profit of RM606mil against RM686mil in the year-ago quarter, while revenue fell to RM6.21bil from RM8.94bil in the comparative period.
