Yinson’s 1HFY18 results as forecast
KUCHING: Yinson Holdings Bhd’s ( Yinson) first half of financial year 2018 (1HFY18) results are expected by analysts to be in line with forecasts.
According to AmInvestment Bank Bhd (AmInvestment Bank), in July this year, Yinson has entered into a heads of agreement to sell a 26 per cent equity stake in the US$ 1 billion floating production, storage and offloading (FPSO) for a consideration between US$ 104 million and US$ 117 million, expected to be completed in December this year.
With Eni’s final acceptance in early June this year of a Ghanabased FPSO, AmInvestment Bank expected the two-month contribution from this project, which achieved first oil in May 2017, to boost second quarter of FY18 (2QFY18) earnings.
“Hence, we also expect the group’s 1HFY18 results, likely to be announced on September 28, to be in line with our forecasts,” it said.
AmInvestment Bank noted that the group, which has recently sent up a multi- currency perpetual securities programme of up to US$ 500 million, is still currently exploring new projects.
“There is a strong likelihood that its 49 per cent-owned joint venture with PetroVietnam Technical Services Corporation ( PTSC) for the FPSO PTSC Lam Son may be securing an alternative charter in Vietnam.
“Recently, the Lam Son JV has accepted a letter of intent from PTSC to continue operations within the Lam Son Field, off Vietnam, effective July 1, 2017,” the research firm said.
AmInvestment Bank recalled that PTSC terminated the original seven-year primary FPSO charter in April this year with an estimated fee of US$ 220 million as the Lam Son field’s production rate fell below expectations to 7,000 barrels per day.
The termination fee mostly recovered the discounted cash flows of the outstanding bareboat charter and was in line with the research firm’s own sum- of-parts based ( SOP) estimate for this project.
“The group may also be eyeing a Hess-related FPSO project in Ghana, which could cost US$ 1 billion, similar to the group’s earlier vessel for Eni,” it said.
“However, the visibility for the tender of this deepwater TanoCape Three Points ( DT- CTP) project, within an ongoing maritime border dispute between the Ivory Coast and Ghana, is opaque at this juncture.”