KUALA LUMPUR (March 25): Yinson Holdings Bhd closed its fourth quarter ended Jan 31, 2020 (4QFY20) with its net profit up 7% to RM64.95 million from RM60.7 million in the same period last year, thanks to higher operating profit and lower tax incurred.

The profit growth was slightly offset by higher finance costs and as Yinson’s joint ventures turned to loss from profit in 4QFY19, according to the company’s filing with the stock exchange.  

Quarterly earnings per share rose to 5.88 sen, from 5.54 sen previously. 

Revenue jumped to RM1.86 billion, from RM287.6 million previously, mainly due to the commencement of lease for floating production storage offloading (FPSO) vessel Helang that gave rise to outright sale recognition under classification of a finance lease.  

Yinson has proposed a final dividend of two sen per share, bringing FY20 total to six sen per share — unchanged from last year. 

For the full-FY20, Yinson’s net profit was 10.63% lower year-on-year at RM209.91 million from RM234.89 million, as higher finance costs and profit portion for non-controlling interests more than offset the lower tax and administrative expenses in the year.  

The decrease was mainly attributable to FPSO Allan’s charter cessation at the end of last financial year, lower amortization of unfavourable contracts, forex loss and higher finance cost, Yinson said.  

This, it said, was mainly set-off by contribution from FPSO Helang from December 2019, lower depreciation and amortization charges, lower impairment loss, and higher other income. 

Full-year revenue more than doubled to RM2.52 billion, from RM1.03 billion in the previous year, as it included the classification of FPSO Helang lease as outright sale recognition. 

On prospects, Yinson said the management is “cautiously confident in the group’s ability to stay resilient” amid the challenging long term outlook for the oil and gas industry, coupled with geopolitical uncertainty and the supply chain disruption arising from the Covid-19 pandemic. 

“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 next financial year ending Jan 31, 2021,” it said.  

Yinson’s share price is currently at an eight-month low, following the steep sell off this month as oil prices slumped and global equities fell. The counter last closed 27 sen or 5.6% higher at RM5.09, giving it a market capitalization of RM5.58 billion.