Yinson's 2Q net profit rises 13.5% on higher offshore production and offshore marine segment

KUALA LUMPUR (Sept 22): Yinson Holdings Bhd’s net profit in the second quarter ended July 31, 2022 (2QFY23) rose 13.49% to RM143 million from RM126 million a year ago, supported by higher contribution from the group’s offshore production and offshore marine segment.

As a result, earnings per share increased to 6.2 sen per share, from RM5.6 sen in 2QFY22, its filing with Bursa Malaysia showed.

Revenue for the quarter jumped 53.7% to RM1.62 billion from RM1.05 billion a year earlier.

It declared an interim dividend of one sen per share, with an ex-date of Nov 29 and payable on Dec 16.

For the cumulative six-month period ended July 31, 2022 (6MFY23), Yinson’s net profit was up 10.5% to RM263 million, from RM238 million in 6MFY22, as revenue expanded 28.3% to RM2.63 billion from RM2.05 billion during the same period a year ago.

Yinson said the increase in revenue and earnings under its offshore production and offshore marine segment was mainly due to higher contribution from the group’s floating production storage and offloading (FPSO) operations mainly driven by the strengthening oil prices and higher contribution from engineering, procurement, construction, installation and commission (EPCIC) business activities.

“In the current financial period, EPCIC business activities for FPSO Maria Quitéria and FPSO Atlanta had commenced subsequent to the execution of firm contracts with Petrobras [Petróleo Brasileiro SA] on Feb 7, 2022, and with Enauta Energia SA on Feb 21, 2022, respectively.

"[Nowithstanding that] The higher contribution from EPCIC business activities related to FPSO Maria Quitéria and FPSO Atlanta was partially offset by lower contribution from FPSO Anna Nery,” it explained.

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

“We believe we can achieve satisfactory results for the financial year ending Jan 31, 2023,” it added.

Yinson’s share price closed four sen or 1.77% higher at RM2.30 on Thursday, giving it a market capitalisation of RM7.02 billion.