PETALING JAYA: Energy infrastructure company Yinson Holdings Bhd
is expected to focus on execution as it has already achieved an order book of more than US$19bil or about RM76.9bil for floating production storage and offloading (FPSO) vessels.
UOB Kay Hian Research (UOBKH Research) said the company is likely to maintain its solid track record in delivery.
However, UOBKH Research said that Yinson’s operations in Brazil may see some earnings risks, while also ruling out scenarios that would be detrimental to the company’s bond covenants.
On the other hand, the research house said Yinson’s earnings for the first nine months of its financial year ending Jan 31, 2026, beat consensus estimates, as profits were lifted by full recognition of a gain from the loan buyout for FPSO Atlanta, and FPSO Agogo’s full charter recognition from early startup.
At the end of last December, Yinson reported profit of US$169mil for its third quarter, which far exceeded consensus expectations and matched UOBKH Research’s estimates.
UOBKH Research maintained its “buy” call on Yinson with a target price of RM3.10.
