CEO Morning Brief

Yinson's 3Q Net Profit Up 58% on Higher Contribution From EPCIC Business Activities

Publish date: Fri, 23 Dec 2022, 08:56 AM
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TheEdge CEO Morning Brief
Yinson's 3Q net profit up 58% on higher contribution from EPCIC business activities

KUALA LUMPUR (Dec 22): Yinson Holdings Bhd's net profit rose 58.16% to RM155 million for its third quarter ended Oct 31, 2022 (3QFY2023), from RM98 million a year earlier, mainly due to higher contribution from its engineering, procurement, construction, installation and commissioning (EPCIC) business activities.

Quarterly earnings per share jumped to 4.9 sen from 2.8 sen, the group's Bursa Malaysia filing showed.

Revenue jumped 11.83% to RM1.73 billion from RM820 million previously.

Yinson said the higher contribution from the EPCIC business activities was partially offset by an increase in finance costs of RM129 million, which was mainly due to the drawdown of the secured US$670 million (RM2.96 billion) syndicated long-term loan facility for the floating production storage and offloading (FPSO) Anna Nery project and the RM1 billion five-year Sustainability-Linked Sukuk Wakalah in December 2021, and increase in tax expenses of RM85 million arising from EPCIC business activities.

For the first nine months of FY2023, Yinson's net profit increased 24.4% to RM418 million from RM336 million while revenue rose 52.2% to RM4.36 billion from RM2.87 billion.

The group said it would continue to apply measures to prudently manage inflation risk, including hedging, effective forecasting, diversification of costs across geographical markets, factoring inflation risk into its contracts, and strategic management of its inventories.

“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," Yinson said, adding that it expects to achieve satisfactory results for FY2023.

Yinson’s share price closed unchanged at RM2.43 on Thursday (Dec 22), giving a market capitalisation of RM7.42 billion.

Source: TheEdge - 23 Dec 2022

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