YINSON HOLDINGS BHD

KLSE (MYR): YINSON (7293)

You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!

Last Price

2.35

Today's Change

-0.09 (3.69%)

Day's Change

2.35 - 2.42

Trading Volume

3,562,900


5 people like this.

4,004 comment(s). Last comment by OTB 8 minutes ago

yewnamhung

224 posts

Posted by yewnamhung > 2023-10-06 16:10 | Report Abuse

😂 !!! 🤜🤛

Posted by HuatRex1314 > 2023-10-06 21:30 | Report Abuse

These people are not investing but gambling. They expect the share to shoot up right after their purchase. Casino faster.

UncleFollower

1,111 posts

Posted by UncleFollower > 2023-10-07 00:15 | Report Abuse

It’s a great opportunity to absorb some shares however small we are compared to the big funds…and I must say if one has a risk appetite, the warrants is very attractive. Managed to get some today on the intra day steep declines. OTB’s explanation and the link he provided is very clear. Yinson is one of those counters you can sleep with. I know…it doesn’t break until it does. But this is stock investment afterall. Such impeccable track record such robust growth, what else investors can ask for? Yinson is testament to the right use of debt. Just like buying Yinson on margin for us now 😂😂

OTB

11,021 posts

Posted by OTB > 2023-10-07 23:16 | Report Abuse

Salient points of the recommendation report posted by Oaklands Path
Please read this report via the link below.
https://www.oaklandspath.com/the-fpso-industry-and-top-tier-lessor-and-operator-yinson

1.) Yinson is the only FPSO company that has consistently turned a profit over the past decade. It has a proven track record of delivering FPSO projects on time and within budget, even during the COVID-19 pandemic. It was the only company in the world not to delay a project due to the pandemic.
2.) Yinson has also had no major health, safety, or environmental or downtime incidents. As a result of its strong track record, Yinson is a preferred bidder in the market.
3.) Yinson has the capacity to build 1 FPSO vessel a year only.
4.) Yinson is the only FPSO lease contractor that is consistently profitable throughout the period.
5.) Yinson entered the offshore oil production industry in 2012 and its margin has been increasing since then. However, the average margin in the last four years is lower than the previous years due to the accounting treatment of finance leases. Under finance lease accounting, Yinson is required to recognize construction revenue and profit during the construction phase, which lowers the company's margin. Once these FPSOs start operation, Yinson's margin should start moving up again. Construction profit is only 7.6% of the revenue whereas chartering service contract rate is 39.6% of the revenue.
6.) After winning the bid, the FPSO lease contractor (Yinson) will build the FPSO and deliver it within the agreed-upon timeframe. The lessor will be responsible for financing the construction and ownership of the FPSO. However, after final acceptance and release of performance guarantee by the client, the loan will become non-recourse to the lessor and will instead be guaranteed by the oil company through the novation of guaranteed lease payment.
7.) The FPSO lease contractor (Yinson) will focus on achieving final acceptance and after which, it will be entitled to full day rate payment and the loan will no longer be recourse to the lessor. In other words, the loan no longer belongs to Yinson and the loan is transferred to the owner of the oil company once the FPSO vessel is subjected to final acceptance and release of performance guarantee by the client.
8.) FPSO Anna Nery achieved financial acceptance on May-23 and began generating lease income. Currently, it still has 3 more FPSOs under construction. FPSO Atlanta and FPSO Maria Quiteria will be delivered next year and FPSO Agogo will be delivered by Feb-26.
9.) Likewise, the loans of 3 FPSO presently under construction will disappear in 2024 and 2026 respectively once the FPSO vessel is subjected to final acceptance and release of performance guarantee by the client. These loans will be transferred to the respective oil company.
10.) Yinson focuses on getting long-term charter contracts, which generate long-term revenue. Focusing on larger vessels with longer firm lease period naturally lowers the risk of termination. FPSOs are essentially floating oil factories. For large oil fields, the average cash production cost per barrel is only a few US dollars. All the exploration and subsea assets invested are sunk costs, so even if the oil price drops to US$30 per barrel, it still makes sense for oil companies to continue producing oil, as the variable cost is less than US$10 per barrel. This is why we have historically seen very few cancellations of FPSO contracts, even when oil prices are low. Terminations usually happen when the productivity of a field turns out to be much lower than the initial estimate, and this risk is borne by the oil companies.
11.) Renewal Energy (RE) and GreenTech - In early 2021, it secured a new contract to build, own and operate a 285MWp(DC) solar plant, which is currently under commissioning in the Nokh Solar Park, India. Unfortunately, the sudden surge in solar panel prices after the contract was awarded resulted in an impairment loss of RM117m recognized in FY Jan-23.
12.) Assuming Yinson does not take on new jobs and does not spend further CAPEX in the renewable energy division, its free cash flow generation should be more than RM3bn each year from FY Jan-27 onwards. This level of free cash flow generation should be sustainable for at least 15 years based on the firm lease period.
13.) The actual operating cash flow should reach over RM3bn in calendar year 2026 and is sustainable for at least another 15 years based on the firm period alone. This compared to a market cap of RM7.4bn today with total net debt of RM11bn. The debt could be fully paid within a few years if the company does not take on a new project. The cash leftover for shareholders may equal 5 to 8 times of today’s market cap i.e. may equal to 59.2 billion in 15 years time.

Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-07 23:24 | Report Abuse

According to the below IBs, the target price of Yinson should be as follows :-
Maybank - 5.05
AMI - 3.96
Kenanga - 3.65
UOB - 3.75
CIMB - 3.27
RHB - 3.06

Note :
Based on Maybank's report, the target price of Yinson is at 5.05.
If this target price can be achieved, the market cap of Yinson is > 15 billion.
Then Yinson can be considered as a component stock of FBMKLCI.
The market cap of YTLPower is about 15 to 16 billion (to be included in FBMKLCI component stock in December 2023).

Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-07 23:43 | Report Abuse

Posted by UncleFollower > 3 days ago | Report Abuse
@Zhuege_Liang we small fry.

Please ask star investor OTB publish this opinion give some advice to Yinson Lims and hopefully gain some traction. Also, before Agogo contract locked-in, they have been doing SBB as high as 2.48. Also, >100B contract value is unheard of in Bursa - and market cap less than 7B, how can.
---------------------------
Dear UncleFollower,
I have written an official letter to the Board Of Directors of Yinson on this matter.

I also highlight this item as well.
According to the below IBs, the target price of Yinson should be as follows :-
Maybank - 5.05
AMI - 3.96
Kenanga - 3.65
UOB - 3.75
CIMB - 3.27
RHB - 3.06

Note :
Based on Maybank's report, the target price of Yinson is at 5.05.
If this target price can be achieved, the market cap of Yinson is > 15 billion.
Then Yinson can be considered as a component stock of FBMKLCI.
The market cap of YTLPower is about 15 to 16 billion (to be included in FBMKLCI component stock in December 2023).

I also requested the Board Of Directors of Yinson to talk to Board Of Directors of EPF to stop selling Yinson share at such a low price now.
If the share price of Yinson can be at 5.05 as recommended by Maybank Investment Bank, then Yinson share will be included into the component stock of FBMKLCI.
It will be a win-win situation for both Yinson and EPF if Yinson share can be a component stock of FBMKLCI.

Hope my letter to the Board Of Director of Yinson will help to boost up the share price of Yinson.
Thank you.

UncleFollower

1,111 posts

Posted by UncleFollower > 2023-10-08 12:02 | Report Abuse

Top quality brief, better than the IB reports. Kudos to OTB

We need more investors like this to protect small investors interest

I will support the cause, let me think of some fresh points and also send it to Yinson

OTB

11,021 posts

Posted by OTB > 2023-10-08 12:24 | Report Abuse

Please note that Yinson is the best FPSO lease contractor in the world, Yinson never fail to deliver the FPSO vessel in time and it is the preferred lease contractor among all 8 major lease contractors in the world.

FPSO contract will be in great demand because the cost of production of oil is less than USD10 per BBL.

The oil company even pays cash upfront to Yinson to construct the FPSO vessel because it is a very high profitable business.

The oil company of FPSO Agogo project paid USD 500 million upfront to Yinson for the construction cost of FPSO Agogo vessel.

Most investors in KLSE did not notice this news and say that the debt of Yinson is very high. The construction cost of FPSO is very high, it is amounted to hundred of million in USD.

The debt on the construction cost of FPSO vessel will be transferred back to the oil company once the FPSO vessel is accepted by the oil company. This type of arrangement is in the agreement and the oil company has to accept this term because this type of FPSO business is very high in profit due to low production cost of less than US10 per BBL.

Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-08 12:27 | Report Abuse

I still believe Yinson will perform well in the next 3 years because of strong order book. There are a total of RM 110 billion order booked todate.

All 3 major FPSO projects will be in full operations starting from Q1 2026 onward. I know that the present debt of 11 billion is high, please note that once the FPSO vessel is ready and accepted by the oil company, the debt will be transferred to the oil company.

If Yinson does not take up any project after Q1 2026, the debt will be reduced to almost zero.
The free cash flow generation should be more than RM3bn each year from FY Jan-27 onwards. This level of free cash flow generation should be sustainable for at least 15 years based on the firm lease period.

I believe Yinson will be a component stock of KLSE from FY Jan-27 onwards.

Thank you.

Posted by Permutation > 2023-10-08 17:24 | Report Abuse

Timely recommendation from OTB at current level. At least people cannot accuse him of pump and dump. His cost would probably be around RM2.45 ? so if you trust his stock pick, buy now and don't wait till RM3.5 and later blame him for sending you to Holland.

Posted by HuatRex1314 > 2023-10-08 22:24 | Report Abuse

EPF start to acquire. Hopefully we have reached the bottom.

OTB

11,021 posts

Posted by OTB > 2023-10-09 08:23 | Report Abuse

Yinson quarter results
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7293
Q1 2024 - Revenue =3018M, PBT=296M, PAT=208M, EPS=6.10, PAT margin =6.89%, PAT/PBT%=70.3%
Q2 2024 - Revenue =3113M, PBT=449M, PAT=230M, EPS=6.70, PAT margin =7.39%, PAT/PBT%=51.2%
Half year PAT=438M

IB reports and target price projections
IB/FY2024/FY2025/TP
MBB/872/1008/5.05
UOB/648/854/3.95
KEN/603/731/3.65
AMI/823/798/3.96
RHB 436/767/3.06
Q2 July 2024 result - PBT is good.
Q2 July 2024 result - PAT is low even PAT margin is higher than Q1 April 2024 result.
Half year PBT=745M, PBT for FY2024 will be estimated at least 1.450 billion.
If PAT/PBT%=0.703, PAT=1.019 billion. If PAT/PBT%=0.512, PAT=742.4 million. The average is =880 million. Please note that the PAT for the second half of FY2024 will be better than the PAT for the first half of FY2024. Full charter service rate at 39.6% PBT of FPSO Anna Nery will be included in the second half of FY2024.
Half year PAT=438M, I believe this projection of PAT for FY2024 is inline with MBB's projection.
Based on MBB's projection, the target price for Yinson is at 5.05.
The PAT for FY2025 will be better than PAT for FY2024 because FPSO Anna Nery will be in full operations. Moreover, both FPSO Maria Quiteria and FPSO Atlanta will be in operations in FY2025, they will contribute about 50% of their revenues and also PAT.
The PAT for FY2025 will be > 1 billion.
The share price of Yinson closed at 2.37 on 6/10/2023 is definitely undervalued.
Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-09 09:04 | Report Abuse

PAT margin is low because of finance lease accounting, the investment in CAPEX to construct the FPSO is recognized as a contract asset on the balance sheet.
The CAPEX to construct the FPSO is included in the revenue reporting, this inclusion inflated the revenue number resulted in low PAT margin.
FPSO vessel in construction stage, the PBT is only 7.6% of the Revenue whereas in charter service rate, the PBT is 39.6% of the Revenue.

Under finance lease accounting, the investment in CAPEX to construct the FPSO is recognized as a contract asset on the balance sheet. The change in contract asset must be included in reported cash flow from operations. In reality, this change in contract asset represents CAPEX to build new FPSOs and should not be considered as operating cash flow. The actual operating cash generated for FY Jan23 should be RM1.36 bn.
Thank you.

Posted by Robert Waters > 2023-10-09 09:28 | Report Abuse

With this crude oil rally it is only a matter of time before yinson soars. Get ready.

UncleFollower

1,111 posts

Posted by UncleFollower > 2023-10-09 09:59 | Report Abuse

@RobertWaters This may not be true for Yinson. If we look at historical performance, Yinson does not only have a low correlation with oil price, but a negative correlation with oil. Here we are strictly referring to share price, not business earnings.

This does reflect the underlying business of Yinson. It will do what it does regardless of oil price. The strongest testament to its strength is its performance over the Covid era where oil futures once went negative - yet Yinson's earnings were stable as a rock.

Armada's share price tends to move with oil. It does not reflect its underlying business. But it is a liquid stock to trade. If I want to have real direct equity exposure to oil in Bursa, there's only Hibiscus. The others goreng with oil. Previously, Dialog was given a higher valuation - Dialog is another one that has a completely different model vs direct exposure to oil.

Yinson no longer needs anymore new contract to be worth wayyy more than current price, as OTB said. However it is understood it is still keen to take up the BP contract, and maybe 1 contract a year. FPSO market has never been this good for contractors. For FPSO market to continue to fluorish and remain tight, so long as Brent oil holds above $80, it's very bullish, and at $60-$70 it really isn't an issue. This is from diverse reading and tracking historical performance.

UncleFollower

1,111 posts

Posted by UncleFollower > 2023-10-09 10:11 | Report Abuse

Yinson is this scary behemoth that will generate so much cashflow by CY2026, not sure how market will look at it by then. IT's REALLY BIG.

Recently Lim Chern Yuan said he believes they can hit US$1B ebidta by 2025. That in itself is amazing. US$1B!!! I think he knows what he's talking about. If you have watched him before, this is a CEO full of humility and one who takes his job seriously. He is considered 1.5 Gen, and still very young. 1.5 Gen, since his father founded the business but it was him who ventured into FPSO and changed Yinson forever

Also there will be the RE part of the business that they are currently burning money and market doesnt give any valuation. Isn't this what the market wants, all these green business

The most unfortunate timing in my view...is the expiry of warrants by mid-2025, before all the super earnings come into full blast hehe

OTB

11,021 posts

Posted by OTB > 2023-10-09 10:24 | Report Abuse

The most unfortunate timing in my view...is the expiry of warrants by mid-2025, before all the super earnings come into full blast hehe
-------------------
It is still in time because 2 big FPSOs Maria Quitéria and Atlanta will be in full operations in the middle of 2024. 50% of the PAT will be included in FY2025 result (Jan 2025).

The PAT for FY2025 will be > 1 billion.
Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-09 10:31 | Report Abuse

FPSO contract will be in great demand because the cost of production of oil is less than USD10 per BBL.
The high price of crude oil will also benefit Yinson because Yinson is allowed to claim bonus on the crude oil.
No oil company will terminate the FPSO contract because of huge profit.
All oil company will be laughing happily to the bank.
The limitation is Yinson can build one FPSO vessel a year only.
I believe Yinson will get 2 FPSO contracts at the end of 2023 or early 2024.
2 FPSO vessels FPSOs Maria Quitéria and Atlanta will be completed construction at the middle of 2024.
Hence 2 new FPSO contracts will come in just in time to fill up the slots.
Thank you.

Posted by BursaVulture > 2023-10-09 18:05 | Report Abuse

Yinson profit is stable even during covid because they signed a fixed charter rate, as long as they pump oil out from the ground, they get paid a fixed amount regardless of oil price.

Oil can go to zero or 200usd, it wont effect yinson profit.

OTB

11,021 posts

Posted by OTB > 2023-10-09 20:48 | Report Abuse

FPSO contract will be in great demand because the cost of production of oil is less than USD10 per BBL.
The high price of crude oil will also benefit Yinson because Yinson is allowed to claim bonus on the crude oil.
Thank you.

Posted by Permutation > 2023-10-09 23:10 | Report Abuse

Perhaps more accurately put is the variable cost.

ImCK

2,883 posts

Posted by ImCK > 2023-10-11 23:55 | Report Abuse

cashflow is negative maybe another serbak

Posted by Bruce_Wayne > 2023-10-12 01:25 | Report Abuse

Hmm.......

Rev by location ( RM M ) ________ 2023 ________ 2022
Malaysia _________________________ 334 _________ 302
Ghana ___________________________ 857 _________ 566
Nigeria __________________________ 499 _________ 438
Norway __________________________ - ___________ 13
Brazil ____________________________ 4,558 _______ 2,206
India ____________________________ 75 ___________ 72
Other countries _________________ 1 ____________ 10
Subtotal ________________________ 6,324 ________ 3,607


Non current assets by loc ( RM M) __ 2023 ______ 2022
Malaysia _____________________________ 374 _______ 425
Ghana _______________________________ 3,040 _____ 3,176
Brazil _________________________________ 8,259 ____ 4,739
India __________________________________ 967 ______ 458
Vietnam ______________________________ 348 ______ 383
Singapore ____________________________ 97 ________ 67
Canada _______________________________ 62 ________ 79
Nigeria _______________________________ 13 ________ 79
Italy __________________________________ 33 ________ 16
Norway ______________________________ 47 ________ 9
Other countries ______________________ 14 ________ 4
Total __________________________________ 13,254 ___ 9,435

Loans ( RM M ) _____________________ 2023 ______ 2022
Loans and borrowings ______________ 9,584 _____ 8,758
Gross debt __________________________ 9,584 _____ 8,758
Less: Cash and bank balances ______ (1,507) ____ (2,859)
Other investments, current ________ (153) ______ (14)
Net debt ___________________________ 7,924 ______ 5,885

.

Posted by Bruce_Wayne > 2023-10-12 01:27 | Report Abuse

PearlWhite,

Wanna play?


I.Am.PSAi3Alert.


.

OTB

11,021 posts

Posted by OTB > 2023-10-12 08:37 | Report Abuse

The future prospect of Yinson is very bright due to the huge order book secured now.

Moreover, Yinson has been awarded the ‘Industry Excellence Award’ under the energy sector at MSWG-ASEAN Corporate Governance Award 2021, in recognition of the Group’s exemplary corporate governance disclosure and practices amongst Malaysian public listed companies.
I believe the management of Yinson can be trusted and I am sure Yinson will make it to be a component stock of FBMKLCI index in the next 5 years.
Thank you.

OTB

11,021 posts

Posted by OTB > 2023-10-12 09:17 | Report Abuse

Under finance lease accounting, the investment in CAPEX to construct the FPSO is recognized as a contract asset on the balance sheet. The change in contract asset must be included in reported cash flow from operations. In reality, this change in contract asset represents CAPEX to build new FPSOs and should not be considered as operating cash flow. The actual operating cash generated for FY Jan23 should be RM1.36 bn.
Thank you.

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 12:15 | Report Abuse

OTB contract asset is not guarantee it can be impairment loss later if anything happen

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 12:16 | Report Abuse

you can see the net cash is keep decreasing

OTB

11,021 posts

Posted by OTB > 2023-10-12 12:31 | Report Abuse

FPSO Anna Nery. Brazil. 75% stake in 2023, 66.5% stake in 2024.
https://www.theedgemarkets.com/article/yinson-rises-17-after-landing-fpso-contracts-worth-us52b-brazil
https://www.oedigital.com/news/497166-naming-ceremony-held-for-yinson-s-anna-nery-fpso#:~:text=The%20estimated%20aggregate%20value%20of,date%20of%20the%20final%20acceptance.
Contract value = USD 5.4 billion. 25 years firm.
Start operation in early 2023.
Annual (charter rate) revenue = USD 5400 million/25*75% = USD 162.00 million = RM 745.20 million (1 USD = RM 4.60)

3 FPSO vessels of Yinson under construction
1.) FPSO Maria Quitéria. Brazil. 100% stake.
https://www.theedgemarkets.com/article/yinson-lands-fpso-contracts-worth-us52-billion-brazil
Contract value = USD 5.2 billion. 22.5 years firm.
Start operation in mid-2024.
Annual (charter rate) revenue = USD 5200 million/22.5 = USD 231.11 million = RM 1.063.10 billion (1 USD = RM 4.60)

2.) FPSO Atlanta. Brazil. 100% stake.
https://www.oedigital.com/news/494478-malaysia-s-yinson-brazil-s-enauta-pen-firm-contracts-for-atlanta-field-fpso
Contract value = USD 1.9 billion. 15 years firm and with option to extend 5 years.
Start operation in mid-2024.
Annual (charter rate) revenue = USD 1900 million/15 = USD 126.67 million = RM 582.68 million (1 USD = RM 4.60)

3.) FPSO Agogo. Angola. 100% stake.
https://www.theedgemarkets.com/node/657117
https://klse.i3investor.com/web/announcement/detail/1757017
Contract value = USD 5.3 billion (Inclusive 15 years + optional 5 years extension). 15 years firm and with extension 5 years.
Start operation in the fourth quarter of 2025.
Annual (charter rate) revenue = USD 5300 million/20 = USD 265.00 million = RM 1.219 billion (1 USD = RM 4.60)

You need cash to construct these 3 big FPSO vessels.
Please note that payback is only 3 years.
No oil company will terminate FPSO contract because the production cost of FPSO is < USD10 BBL.
Oil company is laughing all the way to the bank in view of high crude oil price.
Oil company wants fast delivery on the FPSO vessels.
The oil company of FPSO Agogo vessel paid USD 500 million upfront and in advanced to Yinson because this oil company wants a fast delivery on the vessel.

Thank you.

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 12:43 | Report Abuse

then hope it can pass the high interest rate period because look at the cash decreasing fast
last quater show it Drawdown of loans and borrowings 1,416 billion & Proceeds from disposal of other investments 153million

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 12:46 | Report Abuse

without loan and borowing and diposal other investment the cash go negative already

OTB

11,021 posts

Posted by OTB > 2023-10-12 12:52 | Report Abuse

All 3 major FPSO projects will be in full operations starting from Q1 2026 onward. I know that the present debt of 11 billion is high, please note that once the FPSO vessel is ready and accepted by the oil company, the debt will be transferred to the oil company.

If Yinson does not take up any project after Q1 2026, the debt will be reduced to almost zero.
The free cash flow generation should be more than RM3bn each year from FY Jan-27 onwards. This level of free cash flow generation should be sustainable for at least 15 years based on the firm lease period.

Thank you.

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 13:58 | Report Abuse

3 year can be many thing happen during period seem like suffer with cashflow make sure all smooth lo
during this period can have financial crisis rate hike to 10% 15% oil demand drop due to renewable energy transformation for every country

Posted by FinanceInRealLife > 2023-10-12 20:03 | Report Abuse

Should you be concern on Yinson's large debt?

Posted by FinanceInRealLife > 2023-10-12 20:04 | Report Abuse

In our video, we discuss our analysis on Yinson: https://www.youtube.com/watch?v=-v2lPPmI2xU

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 23:25 | Report Abuse

of course concern la 3 year wo if interest rate hike until 10% 15% can go bankrupt already

ImCK

2,883 posts

Posted by ImCK > 2023-10-12 23:26 | Report Abuse

business risk is important

ImCK

2,883 posts

Posted by ImCK > 2023-10-13 18:51 | Report Abuse

useless cash dropping fast if anything happen like oil demand drop or interest rate hike will give him a hit

ImCK

2,883 posts

Posted by ImCK > 2023-10-13 20:02 | Report Abuse

EIA already said oil demand will drop god bless yinson

Posted by talkrealreal > 2023-10-14 00:41 | Report Abuse

Terminations usually happen when the productivity of a field turns out to be much lower than the initial estimate, and this risk is borne by the oil companies.

Dehcomic01

298 posts

Posted by Dehcomic01 > 2023-10-14 09:18 | Report Abuse

Despite the high oil prices, the ROE of Yinson over the past few years has been around 10%. I think this reflects its position that it is more like a provider of facilities rather than a mining company.

OTB

11,021 posts

Posted by OTB > 2023-10-14 10:23 | Report Abuse

The main income from Yinson is from FPSO charters service, the rate is fixed by the agreement.
Crude oil price has no bearing on her profit.
The cost of production of oil for the oil company using FPSO service is < USD10 per BBL.
Hence this FPSO charters service has a very good future, no oil company will terminate FPSO contract due to low cost of production.
There is more demand than supply in the present market.
There are 13 FPSO projects to be awarded every year, very few players interested to take the job because there is no capacity to build FPSO vessel.
There are only 8 proven and reliable players in the world.
The capacity of Yinson is only 1 FPSO vessel per year.
Please note that Yinson is the best or preferred bidder for FPSO project in the world.
Thank you.

stockraider

31,556 posts

Posted by stockraider > 2023-10-14 12:22 | Report Abuse

Yinson Too much borrowing loh!
High risk....just like former high fliers like sapnrg & serba loh!

Paul Tan

146 posts

Posted by Paul Tan > 2023-10-14 19:21 | Report Abuse

yinson's rydeev electric motorcycle business will benefit from budget 2024's electric motorcycle rebate https://paultan.org/2023/09/10/yinson-greentech-launches-rydeev-centre-in-petaling-jaya/

ImCK

2,883 posts

Posted by ImCK > 2023-10-15 12:26 | Report Abuse

lol OTB more worst yinson need increase capex for the EV electric vehicle charging infrastructure + capex for this FPSO can yinson pass this 3 year with high interest rate and USD rising

ImCK

2,883 posts

Posted by ImCK > 2023-10-15 12:28 | Report Abuse

negative cashflow keep increase borrowing with high interest rate
just wait the boom happen . u know the most of the richest how to die ? die in negative cashflow in high interest rate crycle

ImCK

2,883 posts

Posted by ImCK > 2023-10-15 12:32 | Report Abuse

On 18 August 2023, Yinson Production Azalea Consortium Pte. Ltd. (the “Borrower”), an indirect
wholly-owned subsidiary of the Company, secured a USD300 million term loan facility in relation to
FPSO Agogo from a global investment firm, RRJ Capital.
This term loan facility is secured, bears fixed interest rate of 13.0% or 13.875% per annum subject
to completion of agreed project milestones, and has an expected maturity period of 5 years.

ImCK

2,883 posts

Posted by ImCK > 2023-10-15 12:34 | Report Abuse

40m USD interest per year = 120M ringgit per year only for interest not including repayment yet

Post a Comment