Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Dec 13): Yinson Holdings Bhd’s net profit jumped 44.4% to RM91.16 million in the third financial quarter ended Oct 31, 2017 (3QFY18), from RM63.11 million a year ago, on higher contribution from its marine segment.

Earnings per share rose to 8.38 sen from 5.79 sen.

In a filing with Bursa Malaysia today, Yinson said quarterly revenue doubled to RM263.12 million from RM127.94 million in 3QFY17, on the back of higher contribution from the marine segment which grew 82% year-on-year to RM651.81 million, with the chartering commencement of the John Agyekum Kufuor floating production storage and offloading (FPSO) vessel in June and a stronger US dollar.

For the cumulative nine months (9MFY18), the group's net profit surged 61.2% to RM235.04 million from RM145.85 million a year ago, contributed mainly by its marine business expansion into Ghana and lower impairment loss and recovery on trade and other receivables. Revenue for 9MFY18 also increased 82.4% to RM652.76 million from RM357.79 million.

On prospects, Yinson said the short- to medium-term outlook in the oil and gas sector remains challenging and uncertain, due to protracted oversupply, emerging new alternative energy resources and financial institutions' risk appetite towards the sector.

"Overall global economic conditions remain challenging, with higher downside risks," the filing said.

"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 shall strive to achieve satisfactory results for the financial year ending Jan 31, 2018," Yinson added.

In a separate statement, Yinson group executive chairman Lim Han Weng said he expects the proposed disposal of a 26% equity interest in Yinson Production (West Africa) Pte Ltd to a consortium of Japanese companies to complete before June 30, 2018.
 
"Yinson continues working closely with joint venture partner in the negotiation of the FPSO PTSC Lam Son deployment continuation in the Lam Son field offshore Vietnam. We are hopeful that negotiations will be concluded in due course," Lim added.

On the local front, Yinson has affirmed a conditional affidavits to High Court of Malaya at Kuala Lumpur for a propose FPSO supply at offshore Miri, Sarawak.
 
"Recent increase in oil price helped to improve sentiment to our industry, we are cautiously optimistic that there would be more opportunities in the market for us to capitalise and to ultimately grow the business in a sustainable manner,” Lim said.

Yinson shares closed down 5 sen or 1.31% at RM3.76 today, with 457,800 shares done, bringing a market capitalisation of RM4.09 billion.

      Print
      Text Size
      Share