Yinson set for 11pc growth in core earnings per share in FY22

KUALA LUMPUR: Yinson Holdings Bhd will continue to enjoy a full-year contribution from Abigail-Joseph charter and a higher profit from the Marlim-2 construction project, said CGS-CIMB Research.

Its analyst, Raymond Yap, said the offshore production, renewables and offshore marine company was likely to deliver an 11 per cent growth in core earnings per share in its financial year 2022.

“Yinson has submitted floating, production, storage and offloading (FPSO) bids for Petroliam Nasional Bhd’s Limbayong project and Aker Energy’s Pecan project in Ghana. It will also bid for Petrobras’ FPSO Parque das Baleias project by the May 26 due date.”

He said Yinson would evaluate other bids, including an FPSO contract for Enauta’s Atlanta Phase 2 development in Brazil.

“Yinson is also looking at onshore wind and solar farms in Italy, and other greenfield developments in Europe, Australia, New Zealand, Vietnam, and Latin America, as well participating in new tender opportunities in India.

“We have also included in our view Yinson’s investment in Indian

solar power plant operator Rising Sun Energy at the cost of US$30 million, comprising US$25.1 million in equity and US$4.9 million shareholder loan.”

Yap said the potential re-rating catalysts included higher oil price, which would reduce the perceived risk of premature termination of contracts, and possible future FPSO contract wins.

“If Yinson wins the FPSO Parque das Baleias contract, where the bid submission deadline has been pushed to May and where Yinson likely remains the sole bidder, our sum of parts-based target price may increase to RM8.74.”

Yinson’s fourth quarter net profit rose 3.1 per cent to RM67 million from RM65 million previously on higher contribution from its engineering, procurement, construction, installation and commissioning business.

However, revenue fell 32.8 per cent to RM1.25 billion from RM1.86 billion previously.

For the full-year period, Yinson’s net profit jumped 50 per cent to RM315 million from RM210 million previously while revenue surged 92.5 per cent to RM4.85 billion from RM2.52 billion.

If Yinson wins the FPSO Parque das Baleias contract... our sum of parts-based target price may increase to RM8.74.

RAYMOND YAP

CGS-CIMB Research analyst