Yinson's FPSO Anna Nery project in Brazil achieves first oil

KUALA LUMPUR (May 11): Yinson Production (YP), the offshore production business unit of Yinson Holdings Bhd, together with its project partner Sumitomo Corp announced that floating production, storage and offloading (FPSO) Anna Nery achieved first oil on Sunday (May 7), following a successful 72-hour testing.

FPSO Anna Nery is YP’s first operational asset in Brazil. This marks the commencement of the firm charter for a period of 25 years, until 2048, according to Yinson’s statement on Thursday.

FPSO Anna Nery is operating on the Marlim field in the eastern part of the Campos Basin, about 150km offshore Rio de Janeiro.

“The delivery of the asset is a laudable achievement, amid challenges brought about by the Covid-19 pandemic and disruptions to the global supply chain,” said Yinson.

Letters of intent for the FPSO Anna Nery project were awarded by Petróleo Brasileiro SA (Petrobras) to YP in October 2019, with Sumitomo holding a 25% stake in the project.

Sumitomo’s participation follows the signing of a long-term and binding memorandum of understanding between the two parties in April 2018 to jointly pursue and collaborate in the leasing and operation of FPSO and FSO projects worldwide.

CGS-CIMB Research in a note in December wrote that the FPSO Anna Nery project is expected to help Yinson to deliver strong profit growth in the financial year ending Jan 31, 2024 (FY2024).

Yinson posted a 46% rise in FY2023 net profit to RM586 million, from RM401 million a year earlier, mainly due to higher contributions from the group’s FPSO operations and engineering, procurement, construction, installation and commissioning (EPCIC) business activities. Revenue grew 75% to RM6.32 billion from RM3.61 billion.

Its total dividend payout stood at two sen for FY2023, lower than six sen for FY2022.

At Thursday’s noon break, Yinson’s share price finished up one sen or 0.39% at RM2.56, giving it a market capitalisation of RM7.84 billion.