(YNS MK/BUY/RM3.36/Target: RM3.75)

Eni announced first oil from OTCP Ghana (which charters Yinson’s largest FPSO) three months ahead of schedule. This is within our expectation, but is nevertheless a huge boost to Yinson’s track record for early delivery. We retain our FY18 earnings forecast which is subject to upward bias, depending on the client’s final acceptance which may be ahead of target. This may be positive for 2Q-3QFY18 earnings as Ghana will offset the declining JV profits. Maintain BUY and SOTP target price of RM3.75.

Source: UOB Kay Hian Research - 22 May 2017