Yinson Holdings Bhd
(Nov 13, RM2.68)
Maintain “hold” with target price of RM2.97: Yinson Holdings Bhd announced yesterday that its 30%-owned associate company, Yinson Energy Sdn Bhd, has been awarded three licences by Petronas for floating offshore facilities, mobile offshore facilities and naval architecture and marine engineering.
The licences would be a new source of income, and Yinson can now directly tender for works relating to floating production, storage and offloading (FPSO) vessels, floating storage and offloading vessels, and mobile offshore production units for Petronas and other oil and gas companies in Malaysia. We do not expect Yinson to secure jobs within Malaysia anytime soon, as project rollouts have been delayed or slowed down recently.Catalysts for the group stem from more FPSO contracts which the group is currently bidding for in West Africa and Southeast Asia.
Management had earlier indicated that the result of a large FPSO tender is likely to be known by year-end, while small- to-mid-sized projects would be known next year. — AmResearch Sdn Bhd, Nov 13
This article first appeared in The Edge Financial Daily, on November 14, 2014.