Yinson’s earnings double to RM100.7m

The group’s revenue for 3Q jumped 839% to RM2.7b on EPCIC business activities contribution


YINSON Holdings Bhd’s earnings doubled to RM100.73 million in the third quarter ended Oct 31, 2020 (3Q20), compared to RM53.97 million recorded a year ago on the back of higher contribution from engineering, procurement, construction, installation and commissioning (EPCIC) business activities and lower loss on foreign exchange of RM12.7 million.

The corresponding quarter recorded an impairment loss in tax recoverable and property, plant and equipment of RM27.05 million which the current quarter did not make.

The offshore production and support services provider’s revenue for the quarter jumped 839% to RM2.26 billion against the RM240.97 million previously, mainly attributed to the recognition of its EPCIC business activities contribution.

Yinson, in its exchange filing yesterday, noted that the EPCIC business activities contributed RM1.9 billion during the period based on the FPSO Anna Nery construction progress measured using input method in accordance to actual costs incurred and the commencement of lease for FPSO Abigail Joseph, which give rise to a one-off outright sales recognition under a finance lease classification.

Earnings per share for the quarter also rose to 9.22 sen from 4.91 sen recorded a year ago.

For the cumulative nine-month period, Yinson’s net profit increased to RM247.8 million, while revenue stood at RM3.6 billion.

Yinson declared an interim single-tier dividend of four sen per ordinary share in the last quarter, amounting to RM42.65 million, which was payable on Dec 18.

The entitlement date for the dividend payment was Nov 30, 2020.

On its current status, Yinson said it has a potential to acquire an additional stake in Rising Sun Energy Pte Ltd.

Its indirect wholly-owned subsidiary, Yinson Renewables (S) Pte Ltd, entered into a conditional sale and purchase agreement with Sunseap International Pte Ltd, Charisma Energy Services Ltd and Bhadla Solar Investments Pte Ltd on Aug 20 this year.

The group added that the agreement is for the acquisition of a 57.5% stake in Rising Sun Energy for RM61.4 million cash. Upon completion, Yinson Renewables will hold a 95% stake in Rising Sun Energy. Barring any unforeseen circum- stances, Yinson Renewables targets to complete the acquisition in 4Q20.

Moving forward, the group said it is confident of its ability to stay resilient through the challenges with existing orderbooks and a continued positive performance in project execution and operations.

“The long-term outlook for the oil and gas industry remains challenging, with the emergence of new alternative energy sources and a lower financial institutions risk appetite towards the sector.

“Overall, the current global economy is 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,” it noted.

Yinson added that monetary policy instability in major economies and unsettled global trade disputes will likely result in prolonged negative effects to the world economy.

Amid the challenging global economic environment and the volatility of other currencies against the US dollar, the group said it shall strive to achieve satisfactory results for the financial year ending Jan 31, 20