FPSO Anna Nery: 67% debt funded via a five-year US$670m syndicated loan facility from 2021 33% funded via Yinson’s rights issue in May 2022 FPSO Maria Quiteria: 76% debt funded via a six-year US$720m syndicated loan facility from 2022 On 7 Aug 2023, Yinson signed a US$230m term loan to fund its equity portion of the capex FPSO Atlanta: 80% funded via a 15-year US$379.5m loan from Enauta Yinson will fund the remaining capex of US$94.9m via its internal cash balances FPSO Agogo: US$500m upfront payment from Eni Project financing bank debt of c.US$1bn Yinson will need to fund the remaining capex of US$300m, most likely via a new term loan, as reported today by Bloomberg Source :CGSCIMB Report
Yinson is scheduled to release its 2QFY24F results on 29 Sep 2023. We reiterate Add, with an unchanged SOP-based TP of RM3.57. We expect Yinson’s 2QFY24F PATAMI to exceed 1QFY24’s RM208m, as Yinson will book in the full BBC rate from the FPSO Anna Nery which achieved first oil on 7 May 2023; this is the key re-rating catalyst. The standby rate for the Anna Nery from 3 Jan 2023 up to the day prior to first oil on 6 May 2023 is still under negotiation with the charterer; hence, Yinson may only be able to book this in 3QFY24F or 4QFY24F. Downside risks include project execution challenges, and higherthan-expected borrowing costs. Source: CGSCIMB Report.
This Yinson-WA buyer...big money. Been many weeks. It's not easy to resist the temptation to sell. I am now running out of warrants to sell. It takes all of my energy and then a bit more to resist selling my balance half to them now hehe
High interest rate environment is BAD BAD BAD for high DEBT company like Yinson! That’s why push to sell, do you understand? Buy Yinson now is no difference from Kamikaze!
Just like their charter contracts, the fees are fixed, if oil goes up USD1000 per barrel, it wont cause a sudden boost in profit too. They play safe, down side is you wont see a sudden spike in profit, thus dont expect a sudden spike in share price too.
Sold a bit more warrants but still holding a substantial portion. Mother share is tempting too - but doesnt make sense to go for mother when son is still low premium w reasonable expiry date...what say u
Why does Yinson refuse to move up despite the rosy profit projections? Is the profit projection for real or is there a catch? The qtr result due out before month end should provide some direction. Someone I heard bought Yinson WA using margin financing and will be subjected to heavy capping after september 2023. Can it be interpreted as the broker know something we dont??
MFCB also never fly until they see profit from their hydro dam. Everybody knows the dam is completed and up and running, stock price remains more or less the same until money comes in. Why nobody went in big when it is about to complete?
Yinson can say whatever they want, until the profit is booked, stock price wont move. Because talk is cheap, every CEO can say they expect 2 or 3 times more profit in the coming years, question is, can they deliver? when and if they deliver, stock price will also move up.
@Permutation yes I think BursaVulture said it very well. Yinson isn't cheap now, it's cheap if they deliver on everything. Given current valuation is already due to a fantastic track record, unlike Armada
Who is that someone buying Yinson WA? This WA is moving in a mysterious way. There's a reasonable healthy volume, and an almost flat price regardless of macro events, regardless of mother share movement
It's noted if that someone isn't an insider, he doesnt need to declare interest even when it exceeds 5% because it's on the warrants not mother share. One can only see shareholders list when annual report is out
There'll hardly be any surprises - 29th Sep Yinson will announce another quarter of explosive earnings (yoy) because of Agogo and full recognition of Anna Nery. What'll happen to share price then?
More FPSO jobs amidst fewer contractors with proven track record. FPSO contractors would still be in high demand by clients in the coming year (2024) as Brazil and Africa would still see more contract announcements. Due to the importance of project execution and funding capability, barrier of entry into FPSO market remains high. YINSON remains as one of the top FPSO contractors in the world and we believe they remain in very favourable negotiation position with clients. To note, its top competitors (in terms of track record and trust from the clients) namely SBM and Modec already have their hands full with 15-20 contracts to be executed, causing competition for new FPSO contracts to be lower than previous years. Therefore, we believe FPSO contractor with track record and more balance sheet headroom would benefit from this trend in FPSO industry in the coming years.
Posted by Permutation > 45 minutes ago | Report Abuse OTB, talking about energy stock. what is your take on Yinson ? ------------------------ Permutation, Energy Index is also in a technical bull market. I believe Yinson share will move up north after Q2 July 2024 result to be released in September 2023. The share price of Yinson cannot perform because EPF is selling Yinson shares non-stop for no good reason or the reason I do not know. Investors are saying total borrowing is too high. Yinson has a total order book of RM 110 billion. A total borrowings of 10 billion is less than 10% of the order booked. At end-April, the group had a cash balance of RM2.02 billion against total borrowings of RM10.52 billion. Its net gearing stood at 1.8 times, compared with around 1.3 times among local utility players, according to data from Asia Analytica.
Yinson has 3 major FPSO contracts to be in operations in the next 2 years. The pretax profit margin for chartering service is 39.6%. The pretax profit will be at record high after 2024/5. Yinson is good for a longer term investment. According to the below IBs, the target price in 2023 is as follows :- CIMB - 3.50 Kenanga - 3.65 Maybank - 5.05 UOB - 4.05.
Source: CGSCIMB Report. Yinson is scheduled to release its 2QFY24F results on 29 Sep 2023. We reiterate Add, with an unchanged SOP-based TP of RM3.57. We expect Yinson’s 2QFY24F PATAMI to exceed 1QFY24’s RM208m, as Yinson will book in the full BBC rate from the FPSO Anna Nery which achieved first oil on 7 May 2023; this is the key re-rating catalyst. The standby rate for the Anna Nery from 3 Jan 2023 up to the day prior to first oil on 6 May 2023 is still under negotiation with the charterer; hence, Yinson may only be able to book this in 3QFY24F or 4QFY24F. Downside risks include project execution challenges, and higher than-expected borrowing costs.
If you told me in Mar/Apr Yinson and warrant would have traded side ways until now I wouldnt have believed you. Good news bad news no news, it is stable as a rock. Cute.
I am so bored of this stock... hold since June, but just sideway... wonder what is wrong with this stock??? haihhh... got good news also won't go up...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Vdhawan
81 posts
Posted by Vdhawan > 2023-08-04 14:18 | Report Abuse
Good announcement from Yinson. Brace for it to reach 52 weeks high