Tuesday 07 May 2024
By
main news image

KUALA LUMPUR (Sept 27): Yinson Holdings Bhd's quarterly net profit grew 38.5% year-on-year in its second quarter ended July 31 (2QFY18), thanks to the chartering commencement of its floating production storage and offloading (FPSO) vessel John Agyekum Kufuor or JAK in Ghana under its marine business in June.

Quarterly net profit rose to RM83.6 million from RM60.36 million in 2QFY17, while revenue jumped 89.8% to RM217.23 million from RM114.45 million, its Bursa Malaysia filing today showed.

Earnings per share stood at 7.68 sen, against 5.54 sen in the same quarter last year. The company declared a 4 sen interim dividend in respect of its FY18, payable on Dec 22.

For the first half of its FY18 (1HFY18), Yinson's net profit jumped 73.9% y-o-y to RM143.88 million from RM82.74 million, as revenue improved 69.5% to RM389.64 million from RM229.84 million.

It said the earnings improvement for the year-to-date period was mainly due to better profit contribution on higher recorded revenue from its marine business, and lower impairment loss on trade and other receivables of RM10.84 million. The marine business has been Yinson’s core contributor since becoming a full-fledged FPSO operator.

In a statement, Yinson chairman Lim Han Weng said the group's year-to-date core profit after tax grew 92% y-o-y to RM187.4 million.  

"Our people are currently making progress in the negotiation of the FPSO PTSC Lam Son deployment continuation in the Lam Son Field. We are hopeful that negotiations will be concluded in due course.

"We are also pleased to celebrate FPSO John Agyekum Kufuor achieving its first oil in Ghana on 21 May 2017...We are cautiously optimistic there are more opportunities in the market for us to capitalise and to ultimately, grow the business in a sustainable manner,” Lim said.

Back to its filing, the FPSO operator said the short- to medium-term prospects for the oil and gas sector remains challenging amid oversupply, emergence of alternative energy sources and financial institutions risk appetite towards the sector.

"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 US dollar, the group shall strive to achieve satisfactory results for the financial year ending Jan 31, 2018," it added.

Yinson shares slid 0.85% or 3 sen to close at RM3.48 today, giving it a market capitalisation of RM3.79 billion. Year to date, the stock has climbed 20.42%.

 

      Print
      Text Size
      Share