PETALING JAYA: Regardless of oil price swings, stable financial results are expected from Yinson Holdings Bhd
.
Yinson, one of the largest floating, production, storage and offloading (FPSO) operators, is slated to releases its fourth quarter ended Jan 31, 2026 results next week.
UOB Kay Hian (UOBKH) Research expected no negative surprise as minor setbacks for the group’s Brazil FPSO projects were well guided.
“Despite sentiment generated from current oil prices, we note the lacklustre global FPSO stock performance.
“Perhaps an unpopular opinion is that the situation may cause more project sanction delays, and is ultimately negative for FPSO prospects and Yinson Production’s eventual listing,” the research house said in a report.
Elaborating on the issue, the research house pointed out that high oil prices do not directly correlate to FPSO earnings, which are usually contracted based on a fixed agreed charter rate over a multi-year lease period.
The correlation only exists if oil price is “higher for longer”, which will prompt oil majors to recalibrate capital expenditure and long-term oil price assumptions.
This indirect opens up prospects of more deepwater projects.
“Secondly, we assume that this geopolitical event will be short-lived, but the volatility (which will spread beyond oil prices to include trade and geopolitical risks) may result in project sanction delays and thus, lesser FPSO award prospects in the near-term horizon,” said the research house
It said UOB Economics expected Brent price to average US$90 per barrel in the second quarter of 2026 (2Q26), before gradually reversing to US$75 in 1Q27.
“Normally, share prices of oil and gas companies across the value chain benefit from this sentiment.
“However, there has hardly been any capital appreciation for FPSO players, not just locally (like Yinson and Bumi Armada Bhd), but also top-tier global peers like SBM Offshore and Japan-based Modec,” the research house said.
