Robust demand for energy a boon for Yinson

Rise in global FPSO project approvals a positive

“Supported by our existing portfolio of longterm contracts, we believe we can achieve satisfactory results for the financial year ending Jan 31, 2025.” Yinson Holdings Bhd

PETALING JAYA: Yinson Holdings Bhd remains upbeat on its business prospects backed up by strong demand for energy and despite being aware of the numerous uncertainties evident in the market it operates in.

The energy infrastructure group noted the floating production, storage and offloading (FPSO) market continues to see strong demand for contractors like Yinson, driven by increase in project approvals around the world, particularly in Brazil which is currently seeing the highest demand for FPSO vessels, followed by West Africa.

“Supported by our existing portfolio of long-term contracts, we believe we can achieve satisfactory results for the financial year ending Jan 31, 2025 (FY25),” the company said in a filing with Bursa Malaysia.

For its final quarter ended Jan 31, 2024 (4Q24), Yinson posted a 37.72% year-onyear (y-o-y) rise in revenue to Rm2.7bil while earnings rose 62.57% y-o-y to Rm278mil, or an earnings per share (EPS) of 8.4 sen on higher charter rates.

The group’s board proposed a final single-tier dividend of one sen per share for the financial year, subject to approval from shareholders at its AGM.

Over the whole of FY24, revenue was up 84.16% y-o-y to Rm11.65bil, while earnings rose 63.67% y-o-y to Rm964mil or an EPS of 28.5 sen on higher contribution from its engineering, procurement, construction, installation and commissioning segment.

Yinson added its FPSO vessel Atlanta had set sail from a shipyard in Dubai to Brazil, marking the successful completion of the project’s execution phase.

The vessel has a production capacity of 50,000 barrels of oil per day, as well as a maximum storage capacity of 1.2 million barrels, and is expected to arrive at the Atlanta field in the Santos Basin off Brazil in the second quarter of this year.

FPSO Atlanta is a redevelopment project awarded by Enauta Energia SA on Feb 21, 2022 as an engineering, procurement, construction and installation project.

The vessel is the second of three FPSOS Yinson Production is delivering to clients in Brazil. The first vessel, FPSO Anna Nery ,is already operational after achieving first oil in May 2023, while the third FPSO is currently under construction in China and progressing towards completion this year.

Meanwhile, Yinson Greentech’s two prototype-design electric vessels, Hydromover and Hydroglyder, were selected by the Maritime of Port Authority of Singapore (MPA) for an enhancement programme to further develop and commercialise the protoypes.

“MPA has also selected us to trial a megawatt direct current fast charging solution to prepare for larger electric vessels in the Singapore maritime market in future,” the company added.

Yinson’s renewables business also broadened its project portfolio with the acquisition of the 97 megawatt Matarani Solar Project in the Mollendo desert in Peru.

The project will generate 260 gigawatt hours of renewable energy annually for the Peruvian grid. The construction of the Matarani project is currently underway, with commercial operations slated to commence by the third quarter of 2024.

“Our Bhadla and Nokh projects (in India) continue to perform well and deliver stable generation, and thereby predictable revenue streams. With Matarani in operation later in the year, our generation capacity will be in excess of one terrawatt hour annually,” the company stated.

In its filing with Bursa Malaysia, Yinson also said that there have yet to be any material developments on the status of an agreement signed with Sumitomo Corp on April 20, 2018.

The memorandum of understanding was inked for a collaboration to lease and operate FPSO and FSO projects worldwide, in which Yinson’s role is to oversee and conduct the overall project implementation.