Yinson’s 2Q profit down 11.9%

Yinson Holdings Bhd’s net profit for the second quarter ended July 31, 2018 (2Q18) down 11.88% a year ago largely due to higher finance costs and lower revenues from its joint venture.

The integrated offshore service provider posted a net profit of RM73.67 million for the April through July compared to RM83.6 million recorded in the corresponding quarter a year ago.

The company in a statement to the bourse said the drop was further mitigated by higher recorded revenue, lower administrative overheads, lower fair value loss on investment properties, higher net favourable foreign-exchange movement and lower impairments.

Yinson’s revenue for the quarter rose 13.49% to RM246.54 million from RM217.23 million recorded in 2Q17.

The company said the short-and medium-term outlook of the oil and gas (O&G) industry remains challenging and uncertain due to emerging new alternative energy resources and financial institutions risk appetite towards the sector.

“Amid the challenging global economic environment and the volatility of other currencies against US dollar, the group shall strive to achieve satisfactory results for the financial year ending Jan 31, 2019,” Yinson said.

In Aug this year, Yinson incorporated a subsidiary in Mexico, Yinson Malva Operations SA DE CV.

The company in Mexico will be involved in providing operations and maintenance of floating marine assets to the offshore O&G industry.

The company was incorporated with an initial issued paid-up share capital of 10,000 Mexican pesos (RM2,190) with 90% of the stake held by Yinson Production AS and the remaining 10% by Floating Operations and Production Pte Ltd.