Yinson 2Q net profit surges on EPCIC segment contribution

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KUALA LUMPUR (Sept 28): For the second quarter ended July 31, 2020 (2QFY21), Yinson Holdings Bhd’s net profit jumped 144%. The group’s earnings were lifted by greater contribution from the engineering, procurement, construction, installation and commission (EPCIC) segment.

In a bourse filing, the group announced that its quarterly net profit ballooned to RM100.36 million, from RM41.14 million in the corresponding quarter last year.

At the same time, the company also announced an interim dividend of four sen per share, amounting to a total payout of RM42.65 million, payable on Dec 18, 2020.

Yinson also announced that its revenue had shot up by 366.45% year-on-year (y-o-y) to RM995.58 million, from RM213.44 million.

Quarter-on-quarter, the group’s net profit surged from the RM46.72 million posted in the immediate preceding quarter, with revenue also trebling from the RM343.75 million posted in 1QFY21.

In the result release, it noted that EPCIC business activities were driven by the provision of a floating production storage and offloading facility, the FPSO Anna Nery, to Brazilian firm Petrobas.

“The contract is a multiple element arrangement [which], among others, contains an EPCIC component for the conversion of FPSO Anna Nery for which revenue will be recognised over time based on the progress and a finance lease component where leasing revenue will be recognised when FPSO Anna Nery commences its lease,” it explained.

For the first half of the financial year ending Jan 31, 2021 (1HFY21), net profit grew by 61.6% y-o-y to RM147.07 million from RM91 million. Half year revenue jumped to RM1.34 billion, from RM422.44 million last year.

“The long-term outlook for the oil and gas industry remains challenging, with the emergence of new alternative energy sources and a lower financial institutions risk appetite towards the sector.

“The management is cautiously confident in the group’s ability to stay resilient through the challenges with existing order books and a continued positive performance in project execution and operations. 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, 2021,” it said on its prospects.

Yinson dropped six sen to close at RM5.64, valuing it at some RM6.19 billion. It saw 1.27 million shares transacted.

Kathy Fong