Yinson Holdings Berhad (Yinson) reported a higher revenue of RM3.11 billion for the second quarter ended 31 July 2023 (Q2 FYE2024). compared to Q1’FYE2024’s revenue of RM3.02 billion.
The Group’s profit after tax for Q2’FYE2024 increased by 42% or RM81 million to RM275 million as compared to RM194 million in the preceding quarter. The increase was mainly due to the maiden contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023, which was partially offset by lower contribution from EPCIC business activities as mentioned above.
For the YTD Q2’FYE2024, revenue increased by 134% to RM6.13 billion as compared to RM2.63 billion in YTD Q2’FYE2023, which was mainly due to higher contribution from EPCIC business activities (based on progress of construction).
For the quarter under review, the global energy infrastructure and technology company saw the increase being mainly due to the maiden contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023, which was partially offset by lower contribution from EPCIC business activities (based on progress of construction).
The lower contribution from EPCIC business activities mainly arose from lower reported progress for FPSO Agogo and FPSO Maria Quitéria. The actual progress of our projects under construction is in line with the Group’s expectations.
In the current financial period, EPCIC business activities for FPSO Agogo had commenced subsequent to the execution of firm contracts with Eni Angola S.p.A. on 27 February 2023.
The acquisition of the entire equity interest in AFPS B.V. by Yinson Bouvardia Holdings Pte. Ltd., an indirect wholly-owned subsidiary of the Company, from Atlanta Field B.V. by way of exercising the call option granted pursuant to the Call Option Agreement dated 21 February 2022 was completed on 31 July 2023. This resulted in the recognition of additional revenue of RM422 million for FPSO Atlanta, with the gross margin remaining consistent before and after the exercise of the call option.
The Group’s PAT for YTD Q2’FYE2024 increased by RM167 million or 55% to RM469 million as compared to RM302 million for the YTD Q2’FYE2023. The increase was mainly due to the higher contribution from the Group’s EPCIC business activities and fresh contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023, which were partially offset by the following:
Increase in administrative expenses of RM101 million, mainly arising from higher operational overheads incurred to drive the growth of the Group;
Increase in finance costs of RM159 million, mainly arising from the higher drawdowns of the secured USD670 million syndicated long-term loan facility for the FPSO Anna Nery project and USD720 million syndicated loan facility for the FPSO Maria Quitéria project; and Increase in tax expenses of RM141 million, which was in line with the higher contribution from EPCIC business activities in the current financial period.
Dividend
On 23 March 2023, the Board of Directors recommended a final single-tier dividend of 1.0 sen per share for the financial year ended 31 January 2023. The proposed dividend was approved by shareholders at the Annual General Meeting held on 13 July 2023. The dividend, which amounted to RM29 million, was paid on 30 August 2023.
In addition, the Board of Directors has declared an interim single-tier dividend of 2.0 sen per ordinary share for the financial year ending 31 January 2024, amounting to approximately RM58 million. The interim single-tier dividend entitlement date and payable date are 30 November 2023 and 15 December 2023 respectively.
Yinson Group Executive Chairman Lim Han Weng said: “The Group continues to demonstrate strong financial performance, which is a testament to our robust and holistic business strategy that we have proactively implemented in order to fulfil the Group’s sustainability and growth objectives.
“On 29 June 2023, Yinson Production (YP), through its joint venture company with PetroVietnam Technical Services Corporation (PTSC), received a Bareboat Charter Contract extension for FPSO PTSC Lam Son for a further 12 months, until 30 June 2024. YP also secured a term loan facility of USD230 million from Global Infrastructure Partners and USD300 million in financing from global private equity firm RRJ Capital. These investments demonstrate the positive market confidence and sentiment towards the financing of our offshore production’s inclusive energy transition approach.
“At Yinson Renewables (YR), the construction of Nokh project in India has been completed and received the ‘ready-to-commission’ status from the authorities. The project will start exporting power once the grid connection works (by others) are completed.
“In Brazil, YR’s 485 MW wind projects are advancing well with the tendering process of the major components. YR is also working on securing debt finance and power purchase agreements while the local authorities are resolving the grid constraints. In Peru, our photovoltaic (PV) projects are moving towards final investment decision (“FID”) within the next 12 months. The same applies to Chile & Italy, where YR is preparing to take these renewables projects to FID soon. In Indonesia, our subsidiary Inecosolar has inked an agreement to build a rooftop solar PV project at Lazada Indonesia’s largest logistics facility, strengthening its position as one of the country’s leading all-in-one energy-as-a-service providers.
Yinson GreenTech (YGT) continues to make inroads in electrifying the region’s transportation ecosystem by forming strategic alliances with like-minded partners, including with UOB Malaysia as a Collaboration Partner for its U-Drive Programme; UEM Edgenta a strategic partner for its Net Zero Targets initiative; and CelcomDigi to develop innovative electric vehicle (“EV”) services and infrastructure for Malaysia’s eMobility ecosystem.
“chargEV continues to expand its network, notably with the signing of an MoU with PLUS Malaysia to launch the country’s first chargEV DC fast charging hub, and an exclusive partnership with Pos Malaysia to install our EV charging solutions across 6 locations nationwide. Alliances such as these pave the way for parties to explore YGT’s integrated solutions further, including e-motorcycle leasing through rydeEV and vehicle leasing through drivEV. In September, we launched the rydeEV Experience Centre in Petaling Jaya. Anyone can now visit the centre to test ride the e-motorcycles, experience its battery-swapping technology, sign up for affordable leasing packages or get their e-bikes serviced.
“As our fully electric passenger craft, Hydroglyder, and cargo craft, Hydromover, move closer to sea and commercial trials by year-end, we are also encouraged by the strong interest and support shown by potential off takers, government bodies and the financial community. I look forward to sharing more updates on our marine electrification segment, marinEV, in the coming days.”
For the fifth consecutive year, Yinson has been awarded the ‘Most Honoured Company’ in Institutional Investor Research’s 2023 All-Asia Executive Team Rankings. The Group also won Silver Award under the General Award category at the 2023 Australasian Reporting Awards (ARA), affirming quality disclosure of Yinson’s 2022 Annual Report. We were recognised once again as one of Malaysia’s 2023 Best Managed Companies by Deloitte alongside 13 other Malaysian companies. At the Employee Experience Awards 2023, Yinson received ‘Gold’ in the category of ‘Best ESG Programme’.
Globally, Yinson further demonstrated its CSR commitment. Our Ghana office hosted the second Annual Yinson Reading and Spelling Bee Competition and donated books to the library in Kejebril Municipal Assembly (MA) School. We also launched the Yinson Girls Education Programme in June, under which we organised STEM clinics for female students in collaboration with the Ghana Education Service (GES) and the Youth Bridge Foundation three months later. In Brazil, Yinson organised a beach clean-up initiative, collecting 20 kilograms of micro garbage. All over the world, incorporating CSR activities into team building retreats has become a norm, with YGT, YR and Human Resources team amongst groups that have been setting aside time to plant trees, clean beaches, and conserve biodiversity during their retreats in the last quarter. Yinson has also been selected, as one of the ESG Strategic Partners of Cyberview, a global technology hub developer, through the signing of ‘Sustainability Pledge of Commitment’ to help shape a more sustainable Cyberjaya.
Looking ahead, the Group and its business units are optimistic of the bevy of opportunities that will showcase our ability to deliver powerful solutions. Yinson is excited to be working with its vendors, partners, suppliers, and government bodies in ensuring that it is always generating stakeholder value for all, Lim added.
