PETALING JAYA: Yinson Holdings Bhd
is showing strong potential in the energy transition sector as well as becoming a global leader in the floating production, storage and offloading (FPSO) segment.
UOB Kay Hian (UOBKH) Research said this was made clear when Yinson Holdings created history by operationalising the world’s first offshore post-combustion carbon capture via FPSO Agogo on March 30, 2026.
It also fully funded Provaris Energy’s venture into liquid carbon dioxide tanks.
According to the research house, while initially not seen as a beneficiary from the Middle East crisis, the group’s sole very large crude carrier (VLCC) YP Antares is enjoying the lucrative tanker spot markets.
“Owning the VLCC is consistent with the guidance of securing one new FPSO per year and demonstrates strong confidence as it competes with Bumi Armada Bhd to secure Mubadala’s Tangkulo gas FPSO in Indonesia.
“With a potential mid-2026 sanction, it is the highest priority in Yinson Holdings’ FPSO subsidiary, Yinson Production’s (YP) list of bids,” it noted.
UOBKH Research said the FPSO space may emerge as an underrated investment option for sovereign nations to navigate against potential multi-faceted energy security risks.
“If this theme materialises, it will accelerate YP’s crystallisation and Yinson Holdings’ ability to recycle capital via FPSO divestments with Maria Quiteria and Agogo,” it noted. “There is an early delivery achievement underway.”
The research house added that the remainder of the joint venture (JV) income should be engineering, procurement, construction, installation, and commissioning income, as YP updated the completion rates for FSO (floating storage and offloading unit) Lac Da Vang (LDV) and FSO Block B at 76%/17%.
“FSO Block B’s construction officially commenced on Dec 19, 2025, where it targeted first gas in the third quarter of financial year 2027 (3Q27).
While FSO LDV’s target startup was 1Q27, the project had a launching ceremony on Feb 6, 2026, implying a potential early delivery by mid-2026,” it said.
In related JV news, its Brazil FPSO Anna Nery was also a major boost for the group – contributing more than RM100mil to its associate income in 4Q26.
As for its 4Q26 results, UOBKH Research said they matched the research house’s expectations, though they far exceeded consensus due to the significant US$170mil FPSO Agogo progress milestone and early delivery incentives and a sharp quarter-on-quarter recovery in the Brazil FPSOs ER earnings towards the 4Q26.
With that, UOBKH Research said it will maintain a “buy” call on the stock with a sum-of-parts target price of RM2.75, implying a 12 times financial year 2027 price-to-earnings ratio.
It also made no changes to its forecasts.
Yinson posted a 19.48% decline in revenue to RM1.12bil in the 4Q26, mainly owing to the lower contribution from engineering, procurement, construction, installation, and commissioning activities.
It said this was owing to the commencement of the charters for FPSO Maria Quiteria, FPSO Atlanta and the Agogo FPSO on Oct 15, 2024, Dec 31, 2024, and Aug 12, 2025, respectively.
“This was partially offset by higher operational contribution from these assets following the start of their charter periods, as well as the recognition of a RM340mil gain arising from the buy-out of the project loan related to FPSO Atlanta in 3Q26,” said the energy infrastructure firm in a statement.
