Yinson 4Q net profit declines slightly to RM65m, declares two sen dividend

KUALA LUMPUR (March 29): Yinson Holdings Bhd has posted a 3% drop in net profit to RM65 million for the fourth quarter ended Jan 31, 2022 (4QFY22) from RM67 million in the previous year's corresponding quarter, mainly due to higher financing costs arising from the drawdown of a RM1 billion sustainability-linked sukuk in December 2021 and fair value losses on other investments of RM29 million.

Earnings per share fell to 6.1 sen from 6.3 sen.

In a Bursa Malaysia filing on Tuesday (March 29), the group said its quarterly revenue slid by 40.58% to RM741 million compared with RM1.25 billion on the back of scheduled lower progress in engineering, procurement, construction, installation and commissioning business activities.

The group declared a final single-tier dividend of two sen per share, to be paid on Aug 30.

For full FY22, net profit increased by 27.3% to RM401 million against RM315 million in the previous year.

Annual revenue, on the other hand, tumbled by 25.61% to RM3.61 billion from RM4.85 billion, mainly contributed by a one-off outright sale recognition of RM1.1 billion from FPSO Abigail-Joseph upon its lease commencement in October 2020.

On a quarterly basis, net profit fell by 33.67% from RM98 million registered in the immediate preceding quarter (3QFY21) while revenue declined by 9.63% from RM820 million.

Moving forward, the group said global energy demand has been increasing and outstripping supply, causing strain on the global energy supply chain.

"As an energy infrastructure and technology provider with a solid leadership position in sustainability, the management is confident of the group's ability to stay resilient amidst the rising global economic challenges with its underlying risks.

"We will continue to apply measures to prudently manage inflation risk including hedging, effective forecasting, diversification of costs across geographical markets, factoring inflation risk into our contracts and strategic management of our inventories.

"We believe we can achieve satisfactory results for the financial year ending Jan 31, 2023 (FY23)," it said.

Shares in Yinson closed 36 sen or 7.42% lower at RM4.49, valuing the group at RM4.95 billion.