Yinson’s earnings get boost from EPCIC business


YINSON Holdings Bhd’s net profit for the second quarter ended July 31, 2021 (2Q21), increased 26% year-on-year (YoY) to RM126 million on contribution from its engineering, procurement, construction, installation and commission (EPCIC) business. 

Revenue for the quarter was at RM1.05 billion compared to RM995 million in 2Q20, according to the group’s filing to Bursa Malaysia yesterday. 

Yinson noted that its 2Q results were driven by EPCIC works related to FPSO Anna Nery, favourable exchange rates, as well as higher share of profits from joint ventures. 

The group registered earnings per share of 11.80 sen for the period. For the six months ended July 31, 2021 (1H21), Yinson’s net profit rose 62% YoY to RM238 million while revenue increased to RM2.05 billion from RM1.34 billion in 1H20.

Yinson has proposed an interim dividend payout of four sen a share. The interim single-tier dividend entitlement date and payable date are Nov 30 and Dec 17, respectively.

On its prospects, Yinson stated that the long-term outlook for the oil and gas (O&G) industry remains challenging due to the emergence of new alternative energy sources and the changing appetite of financial institutions towards the industry. 

It added that overall, the current global economy is exposed to the risk of ongoing trade protectionism, uncertain geopolitical conditions and the disruption in global supply chains caused by the Covid-19 pandemic, bringing higher downside risks. 

“Monetary policy instability in major economies and unsettled global trade disputes will likely result in prolonged negative effects to the world economy. 

“Management is cautiously confident in the group’s ability to stay resilient through the challenges with existing order books and continued positive performance in project execution and operations,” Yinson noted in a release yesterday. 

Amid the challenging global economic environment and the volatility of other currencies against the US dollar, Yinson strives to achieve satisfactory results for the financial year ending Jan 31, 2022. 

Yinson chairman Lim Han Weng said the group is pleased to announce another set of record results this quarter to add to the group’s consistent performance over the last six months despite challenges brought about by the pandemic. 

“We believe the group is poised to continue its strong performance, with the rollout of vaccination regimes across countries aiding the reopening of economies and reflected in the steadying of Brent crude oil price above US$70 (RM292) per barrel. 

“We have also made some significant strides in terms of sustainability performance and disclosures over the last quarter,” he noted in a statement. 

Lim added that the group’s FPSO Anna Nery project remains on track with over 10.5 million manhours without any Lost Time Injuries thus far. 

FPSO Anna Nery is Yinson’s first Brazil asset and its largest project to date. 

The FPSO Anna Nery is contracted by Petróleo Brasileiro SA (Petrobras) and is expected to be deployed at the Marlim field in Campos Basin, offshore Brazil by 2023. 

Yinson shares closed flat at RM4.90 yesterday, for a market capitalisation of RM5.39 billion.