Yinson for its third quarter performance reported higher revenue of RM1,737 million as compared to Q2’FYE2023’s revenue of RM1,620 million. The group said the increase was mainly due to the commencement of EPCIC business activities for FPSO Maria Quitéria and FPSO Atlanta.
The Group’s profit after tax for the third quarter of the current financial year increased by 9% or RM14 million to RM177 million as compared to the RM163 million in the preceding quarter. The increase was mainly due to the above-mentioned contribution effects from EPCIC business activities and FPSO operations, which were partially offset by higher operational overheads and financing costs in the current financial period.
For YTD Q3’FYE2023, revenue increased by 52% to RM4,362 million as compared to RM2,866 million in YTD Q3’FYE2022, which was mainly driven by higher contribution from 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 on 7 February 2022 and with Enauta Energia S.A. on 21 February 2022 respectively. The higher contribution from EPCIC business activities related to FPSO Maria Quitéria and FPSO Atlanta was partially offset by the lower contribution from FPSO Anna Nery.
The Group’s profit after tax increased by RM49 million or 11% to RM479 million as compared to RM430 million for the corresponding financial period ended 31 October 2021. The increase was mainly due to the higher contribution from the Group’s EPCIC business activities as deliberated above. This was partially offset by an increase in finance costs of RM129 million, which was mainly due to the drawdown of the secured USD670 million syndicated long-term loan facility for the FPSO Anna Nery project and the RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah in December 2021, and increase in tax expenses of RM85 million arising from EPCIC business activities.
In the previous quarter, the Board of Directors declared an interim single-tier dividend of 1.0 sen per ordinary share for the financial year ending 31 January 2023, amounting to approximately RM29 million, which was paid on 16 December 2022. The interim single-tier dividend entitlement date was 30 November 2022.
“The Group continues to chart a strong financial performance, with YTD profit after tax and revenue increasing by 11% and 52% respectively this period compared to the preceding year’s corresponding period, contributed by the smooth progress of our assets under construction and reliable operations. The stability of Yinson’s performance throughout the volatility of recent years is a testament of our sound business model and ability to adapt to change,” Lim Han Weng, Group Chairman of Yinson.
“In October 2022, Yinson secured a USD720 million mini perm financing for the ongoing construction of FPSO Maria Quitéria, with ING, Maybank, Natixis, Standard Chartered Bank and United Overseas Bank as Mandated Lead Arrangers, Underwriters and Bookrunners, and with HSBC and J.P. Morgan as Mandated Lead Arrangers. The success of the deal is a testament of the confidence that the investment community has in the robustness of Yinson’s business strategy and our ability to deliver on our promises.”
“The increasing demand globally for specialist FPSO contractors and operators continue to positively impact Yinson Production’s (YP) business activities. On 2 December 2022, YP and Azule Energy signed an Agreement for Preliminary Activities (APA), facilitating preliminary work on an FPSO asset for the Agogo Integrated West Hub Development Project in Angola. The APA, which is for a 60-day term and valued at approximately RM956 million, allows both parties to keep the project schedule while finalising the firm contract.”
“We have also received several extensions on our contract for FPSO Adoon from our client Addax Petroleum, with the most recent extension lasting until 16 January 2023. Our three Brazil assets under construction are progressing very well and according to schedule, thanks to our capable and experienced project management teams together with support from our clients, contractors and subcontractors. We especially look forward to sharing exciting news from the FPSO Anna Nery team in the near future, as its offshore hook-up and commissioning period is well under way.”
“It has been a busy and productive quarter for our renewables business. In addition to further strengthening and growing our global pipeline of renewables projects, Yinson Renewables (YR) maintains a strong focus on maturing secured projects to bring them to final investment decision (“FID”) and to start construction.”
“Two large onshore wind projects in Brazil received confirmation of discounted grid terms and have moved into pre-construction activities with tendering ongoing for major components. Together with a solar PV project in Chile which has secured key permits, all three projects are moving towards their FID, which is expected during the next financial year.”
“Projects in Italy, Peru and Columbia will also move into this phase in the near term. In India, construction of the Nokh project is complete and ‘ready to commission status’ has been granted by the regulator. The project will start exporting power early 2023 when the grid connection (provided by others) is ready. We also continue to deliver new commercial rooftop projects in Malaysia together with our partner PXS, with 13 MW of projects signed with major industrials.”
“Globally, our total renewables pipeline stands at over 5.5 GW, including over 3.8 GW of early stage projects, in addition to close to 1 GW for which planning consent is in process and a further 486 MW+285 MW that are under pre-construction/construction respectively.”
“In October, Yinson Greentech (YGT), in partnership with Starbucks Malaysia, rolled out 23 charging stations across 17 Starbucks outlets in Klang Valley, Penang, Malacca and Johor – with more stations in the pipeline. Our majority-owned subsidiary, eMooVit, also signed an MoU with Prasarana-owned Rapid Bus to collaborate on a pilot programme for autonomous electric bus operations at Rapid BRT Sunway.”
“These partnerships are two of many that YGT is establishing with various businesses, in line with our aim of accelerating green transport adoption while helping businesses achieve their net zero ambitions. On the marine side, we, together with our Goal Consortium partners, had a keel-laying ceremony to mark the commencement of construction of our all-electric, zero emission cargo vessel featuring swappable battery technology, the Hydromover.”
“The vessel is on track to be launched by the second quarter of 2023 and ready for commercialisation in 2024. We were also happy to engage with our industry peers and customers at two events – the Singapore Norway Innovation Conference and Auto Car Expo (ACE) organised by the Norwegian Business Association Singapore and paultan.org in Malaysia, respectively. Sharing our journey is an important part in achieving our vision of building an affordable, environmentally-friendly and technologically enhanced ecosystem to support the decarbonisation of the transport and logistics sectors from sea to land.”
“Yinson recorded a 4.4-point improvement in the ESG Risk Rating by Sustainalytics, placing the Group in the top 2nd percentile of both the Energy Services industry and Oil and Gas Equipment subindustry as at December 2022. The Group was also ranked in the top 17th percentile in the Global Universe.”
“In addition, we have improved our FTSE4Good rating by 1.1-point from 2.7 to 3.8, placing us in the top 25% of public listed companies in the FTSE Bursa Malaysia Emas Index. Our sustainability performance was further affirmed through recognitions at the Asset Triple A Islamic Finance Awards 2022, The Edge Billion Ringgit Club 2022 Awards, MSWG-ASEAN Corporate Governance Awards 2021, Adam Smith Awards Asia 2022 and The Edge ESG Awards 2022 (Gold Award). We are particularly thrilled to receive assurance from our employees and HR professionals that we are a great place to work – Our Singapore and Malaysia offices both, again, received the ‘Best Companies to Work For in Asia’ award by HR Asia.”
