KUALA LUMPUR: Yinson Holdings Bhd’s net profit soared 460% to RM86.8 million in the third quarter ended Oct 31, 2014 (3QFY15) from RM15.5 million a year ago, thanks to a RM20.9 million gain on the disposal of a subsidiary and stake in a joint venture, increase in foreign exchange gain of RM24.8 million, and higher contribution from its marine segment.

Revenue for 3QFY15 rose 7.8% to RM255.2 million from RM236.8 million a year earlier. For the nine-month period (9MFY15), net profit jumped 259% to RM147.8 million from RM41.2 million in the same period last year, while revenue jumped nearly 20% to RM829.8 million versus RM692.4 million in 9MFY14.

The group on Oct 8 disposed of its entire equity interest in Nautipa AS and 50% equity interest in joint venture (JV) Tinworth Pte Ltd through its new wholly-owned indirect subsidiary, Yinson Production AS (YPAS).

In a filing with Bursa Malaysia yesterday, Yinson said its marine segment revenue was up by RM223.4 million compared with the previous corresponding period due to the contribution from YPAS.

Contribution from the JV increased to RM73.5 million from RM25.5 million previously, mainly due to the RM28.9 million contribution from a floating, production, storage and offloading facility (FPSO) operation, it said.

Going forward, Yinson expects global growth to remain moderate.

Nevertheless, the group expects operational results for the current financial year to improve due to contribution from newly acquired business and contribution from JV in FPSO operations.

Yinson’s share price rose 14 sen or 5.24% to RM2.81, giving the group a market capitalisation of RM2.88 billion.

This article first appeared in The Edge Financial Daily, on December 23, 2014.