• Overview. Yinson’s 1QFY22 core PATAMI grew 15% yoy to RM108m mainly due to new income from FPSO Abigail-Joseph (AJ) (began Oct 20) and construction gain from FPSO Anna Nery (AN) project (began 2QFY21). On qoq basis, core earnings grew by 14% due to better income from JV and associate line as there was an asset impairment charges relating to FPSO Lam Son in 4QFY21.

• Key highlights. Yinson currently has 6 operating FPSO vessels and 1 FPSO on order (FPSO Anna Nery) with cumulative outstanding orderbook of USD9.72bn (4QFY21: USD10bn) whereas its solar plant orderbook stands at USD719m (4QFY21: USD725m).

• Against estimates: Inline. 1QFY22 core profit was inline with both our and consensus’ forecast at 20% and 23% respectively.

• New contract. The company secured a pre-FEED contract from Total for FPSO projects in Angola (FPSO Cameia) and Suriname (FPSO Maka) expected to be worth c.USD10m. Following the completion of pre-FEED works, the EPC contract bids will be opened by early CY2022 of which we expect Yinson to participate as well.

• Outlook. Yinson has 3 outstanding project bids including Petrobras’ FPSO Parque das Baleias (PDB), Petronas’ FPSO Limbayong and Aker Energy’s FPSO Pecan. For FPSO PDB, it was still the sole bidder following the completion of re-tender exercise and the contract award could be finalised by early 4QCY21. We have not taken into account any contract win from these projects in our TP.

• Our call. Maintain our BUY call with unchanged SOP-derived TP of RM6.30 which implies 12x FY22F P/E (Table 2). We remain sanguine over its outlook due to (i) its huge orderbook of lease income of USD10bn to be recognised over the next 25 years and (ii) additional income from renewable projects.

Source: BIMB Securities Research - 28 Jun 2021