This article first appeared in The Edge Financial Daily on September 25, 2018

KUALA LUMPUR: Yinson Holdings Bhd’s net profit declined 11.9% to RM73.67 million for the second financial quarter ended July 31, 2018 (2QFY19) from RM83.6 million a year ago, no thanks to higher finance costs and lower contributions from its joint ventures.

It recorded comparatively lower scheduled contract chartering rate for floating storage and offloading PTSC Bien Dong 01, and lower chartering rate from the interim contract it entered for the continued deployment of the floating production storage and offloading (FPSO) PTSC Lam Son, according to its filing with Bursa Malaysia yesterday.

In terms of revenue, Yinson saw a 13.5% year-on-year (y-o-y) growth to RM246.54 million from RM217.23 million, mainly due to the bareboat chartering contribution from its FPSO John Agyekum Kufuo.

Yinson declared an interim single-tier dividend of four sen per share, about RM43.4 million in total, payable on Dec 21, 2018.

In the first half of FY19, Yinson saw a 6.8% y-o-y decline in net profit to RM134.1 million from RM143.88 million, though revenue grew 23.6% y-o-y to RM481.72 million from RM389.64 million.

On prospects, the group noted the most recent report from Energy Maritime Associates confirms a strong start in the FPSO industry this year with nine projects awarded, and another 30 potential projects over the next 12 months.

“With demand for FPSO at its highest since 2012, we remain optimistic that we will be able to continue growing our business for long-term sustainability,” said Yinson chairman Lim Han Weng in a statement.