Yinson records better profit on EPCIC business

by LYDIA NATHAN / pic credit: yinson.com

YINSON Holdings Bhd has recorded lower revenue of RM1.24 billion for the fourth quarter ended Jan 31, 2021 (4Q21), compared to the RM1.85 billion recorded in 4Q20 due to a one-off outright sales recognised in the preceding quarter in conjunction with floating, production, storage, offloading (FPSO) vessel Abigail-Joseph’s lease commencement which was made on Oct 28, 2020.

The energy group’s net profit increased from RM65 million in 4Q20 to RM67 million in 4Q21 on the back of contribution from its engineering, procurement, construction, installation and commissioning (EPCIC) business, full-year operation contribution from FPSO Helang and fresh contribution from FPSO Abigail-Joseph’s lease commencement in the 4Q.

For the full financial year, Yinson’s earnings surged to RM315 million from RM210 million in FY20. The company declared a two sen dividend for the quarter, payable on Aug 30, 2021.

Executive chairman Lim Han Weng stated that the group was able to maintain its financial robustness through the growth of its EPCIC and non-EPCIC business activities, which saw a 92% revenue growth and 151% increase in core profit.

Yinson, through its subsidiary Rising Sun Energy (K) Pte Ltd (RSE), won a contract to develop and operate a 190MW solar project in the Nokh Solar Park, Rajasthan, on March 2, 2021.

“We will sign a 25-year power purchase agreement with NTPC Ltd for the Nokh project, and initial activities are already underway as scheduled for it to be operational by 2022. We are pleased this project award followed on so seamlessly after our 95% acquisition of RSE just three months ago,” he said.

On the operations front, Lim noted that its commercial and technical operations reported uptimes of 100% and 99.3% respectively for FY21.

“Our newest asset to go on charter, FPSO Abigail-Joseph, has been producing steadily without any major challenges, achieving a technical uptime of over 99% in its very first full quarter of operations. These are truly commendable performances, especially given the various challenges arising from the Covid-19 pandemic,” he added.

In an aim to accelerate its global transition towards sustainable energy, Yinson has invested in Norwegian tech company, Lift Ocean AS, on the development and commercialisation of hydrofoil technology for marine harbour crafts.

This is one of several projects that Yinson’s Green Technologies Division, established in September 2020, has embarked on.

“We plan to showcase this hydrofoil technology, alongside some of our other green technology initiatives, during Singapore Maritime Week taking place next month from April 19 to April 23, 2021.”