Yinson’s net profit soars in 2Q20

Revenue jumped to RM995.5m compared to RM213.4m a year ago

by HARIZAH KAMEL / pic credit: yinson.com

YINSON Holdings Bhd’s earnings surged 144% for the second quarter ended July 31, 2020 (2Q20) to RM100.36 million, driven by greater contribution from its engineering, procurement, construction, installation and commission (EPCIC) segment.

Revenue for the period jumped to RM995.5 million compared to RM213.4 million a year ago.

The increase was mainly attributable to positive contribution from EPCIC business activities, higher other income of RM17.54 million, lower contract acquisition cost written-off of RM27.25 million and provision of floating production storage and offloading (FPSO) activities.

Yinson noted that the positive contributions were set off by a higher impairment loss on property, plant and equipment of RM8.6 million, net impairment loss on trade and other receivables of RM6.85 million and net unfavourable foreign-exchange movement of RM57.6 million.

In a filing to the stock exchange yesterday, the FPSO service provider announced an interim dividend of four sen per share, amounting to a total payout of RM42.65 million, payable on Dec 18, 2020.

The group noted that there were no unusual items affecting assets, liabilities, equity, net income or cashflows during the financial period, except for the continued impact of the Covid-19 outbreak.

Moving forward, it said the longterm outlook for the oil and gas industry remains challenging with the emergence of new alternative energy sources and lower financial institutions’ risk appetite towards the sector.

The global economy remains exposed to the risk of ongoing trade protectionism, uncertain geopolitical conditions and the disruption of the global trade chain caused by Covid-19, bringing higher downside risks.

Yinson is cautiously confident in its ability to stay resilient through the challenges with its existing orderbook and continued positive performance in project execution and operations.

“Amid the challenging global economic environment and volatility of other currencies against the US dollar, the group shall strive to achieve satisfactory results for the financial year ending Jan 31, 2021,” it said.