PETALING JAYA: Yinson Holdings Bhd
’s earnings outlook is set to brighten in the coming quarters, helped by the earlier-than-expected start of a key floating production, storage and offloading (FPSO) vessel charter, a healthy pipeline of projects and the possibility of a privatisation deal.
According to CGS International (CGSI) Research, Yinson’s original guidance was for the FPSO Agogo to commence its long-term charter in the third quarter (3Q) of its financial year ending Jan 31, 2026 (FY26), or between August and October 2025.
“However, according to Yinson, the FPSO Agogo is essentially entitled to virtually the full bareboat charter rate from the Provisional Operational Readiness Certificate date on Aug 12, 2025, and, hence, the charter is effectively starting 2.5 months earlier than our expectations,” the research house said.
It said this development has led to an upgrade of its FY26 core net profit forecast by a net 35%.
CGSI Research noted that very minimal engineering, procurement, construction, installation and commissioning profits are likely to be booked in the second half of FY26 (2H26), as the FPSO Agogo was already 96% completed as at end-July 2025.
Still, it views the earlier charter start as a significant earnings catalyst.
The research outfit also highlighted Yinson’s funding moves.
“Yinson issued US$300mil redeemable convertible preference shares to several international investors on June 16, 2025 and will issue another US$200mil on Dec 16, 2025, followed by US$300mil to be issued six months later and the final US$200mil tranche six months after that,” it said.
While the coupon rate of at least 12.95% per annum makes the funding expensive, CGSI Research said the proceeds will be critical if Yinson secures fresh FPSO projects.
The company is targeting new contract awards by the end of calendar year 2025 or in 2026. The potential for corporate manoeuvres also underpins sentiment.
“We reiterate ‘add’ on Yinson as we see the company likely securing new projects but also because we believe there is a reasonable probability that Yinson will be privatised, based on a Bloomberg report on June 6, 2025, that New York-based Stonepeak Partners, an infrastructure and real estate investment firm, is in exclusive talks with the Lim family for a buyout of Yinson,” said CGSI Research.
Nonetheless, risks remain.
The brokerage cautioned that delays in new contract awards could emerge if crude oil prices fall below US$60 per barrel, while privatisation talks may not materialise.
On recent financial performance, Yinson reported a weaker set of results for 2Q ended July 31, 2025. Net profit halved to RM101mil compared with RM203mil a year earlier, while revenue slipped to RM1.36bil from RM2.14bil. Earnings per share fell to 2.3 sen from 5.6 sen.
For 1H26, Yinson posted a net profit of RM216mil, down from RM406mil a year earlier, on revenue of RM2.59bil versus RM4.36bil previously.
The group cited lower offshore production revenue following the handover of FPSO Maria Quitéria and FPSO Atlanta, alongside higher financing costs, as key drags. Even so, CGSI Research believes Yinson’s growth story remains intact, anchored by its FPSO delivery track record, new contract prospects and potential corporate developments.
