Yinson 1QFY18 profit surges 169% on higher marine contribution, stronger US dollar

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KUALA LUMPUR (June 19): Yinson Holdings Bhd saw its net profit surge 169% to RM60.29 million for the first financial quarter ended April 30, 2017 (1QFY18) from RM22.38 million a year ago, mainly due to higher revenue from the marine business, lower net unfavourable foreign exchange movement of RM10.17 million and higher contribution from joint ventures (JVs) and associates of RM3.55 million.

The improvements were primarily set-off by impairment loss on investment properties of RM2.92 million and higher tax expenses of RM4.87 million.

Earnings per share grew to 5.54 sen in 1QFY18 from 2.05 sen in 1QFY17.

Quarterly revenue jumped 49.4% to RM172.41 million from RM115.4 million in 1QFY17.

In a filing with Bursa Malaysia today, Yinson said its marine segment saw a RM56.72 million increase in revenue amid higher marine business and the stronger US dollar, which had also supported the segment’s profit contribution.

The share of results of JVs increased RM3.04 million to RM26.91 million, from RM23.87 million a year ago, also supported by the appreciation of the US dollar against the ringgit.

On prospects, Yinson said the short-term to medium-term outlook in the oil and gas sector remains challenging and uncertain due to protracted oversupply.

"Overall global economic conditions remain challenging, with higher downside risks. Moving forward, global economic activity is expected to remain subdued despite unprecedented easing of monetary conditions in major economies.

"Amid the challenging global economic environment and the volatility of other currencies against the US dollar, the group will strive to achieve satisfactory results for the financial year ending Jan 31, 2018," it added.

In a separate statement, Yinson group executive chairman Lim Han Weng said since the streamlining of its business operations as a full-fledged floating production storage and offloading company, the group has been taking serious measures to fortify its operational efficiencies in terms of costing and management, which have led the group’s growth in a profitable and sustainable manner.
Yinson shares gained two sen or 0.59% to close at RM3.40 today, with 1.54 million shares done, giving it a market capitalisation of RM3.7 billion.