KUALA LUMPUR – 22 September 2022 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), a global energy infrastructure and technology company, today announced its second quarter results for the period ended 31 July 2022 (“Q2 FYE2023”).
FINANCIAL RESULTS
Current Quarter vs Preceding Quarter:
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
For the quarter under review, the Group reported higher revenue of RM1,620 million compared to Q1‘FYE2023's revenue of RM1,005 million. The increase was mainly due to the commencement of EPCIC business activities for FPSO Maria Quitéria and FPSO Atlanta, and higher contribution from FPSO operations in the current financial period. EPCIC business activities for FPSO Maria Quitéria and FPSO Atlanta commenced after the execution of the firm contracts with Petrobras on 7 February 2022 and with Enauta Energia S.A. on 21 February 2022 respectively. The higher contribution from EPCIC business activities related to FPSO Maria Quitéria and FPSO Atlanta was partially offset by a lower contribution from FPSO Anna Nery.
The Group’s profit before tax for the second quarter of the current financial year increased by 30.0% or RM57 million to RM247 million as compared to the RM190 million in the preceding quarter. The increase was mainly due to the above-mentioned contribution effect from EPCIC business activities and FPSO operations, which were partially offset by higher operational overheads and financing costs in the current financial period.
QTD CORE & REPORTED PAT (RM'mil)
Current year vs preceding year:
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
For YTD Q2’FYE2023, revenue increased by 28% to RM2,625 million as compared to RM2,046 million, which was mainly attributable to the higher contribution from the Group’s FPSO operations largely driven by the strengthening oil prices and higher contribution from EPCIC business activities.
The Group’s profit after tax decreased by RM2 million or 1% to RM302 million as compared to RM304 million for the corresponding financial period ended 31 July 2021. The decrease was mainly due to an increase in finance costs of RM64 million, which was mainly due to the drawdown of the secured USD670 million syndicated long-term loan facility for the FPSO Anna Nery project and the RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah in December 2021 and increase in tax expenses of RM44 million. These were partially offset by positive contributions, which largely arose from the higher contribution from the Group’s FPSO operations and EPCIC business activities.
YTD CORE & REPORTED PAT (RM'mil)
DIVIDEND
The Board of Directors recommended on 29 March 2022 a final single-tier dividend of 2.0 sen per share for the financial year ended 31 January 2022. The proposed dividend was approved by shareholders at the Annual General Meeting held on 15 July 2022. The dividend was paid on 30 August 2022.
In addition, the Board of Directors has declared an interim single-tier dividend of 1.0 sen per ordinary share for the financial year ending 31 January 2023, amounting to approximately RM29 million. The interim single-tier dividend entitlement date and payable date are 30 November 2022 and 16 December 2022 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
The Group continues to chart a strong financial performance, with profit after tax and revenue increasing by 17% and 61% respectively this quarter compared to the previous quarter, contributed by the smooth progress of our assets under construction and reliable operations. The consistency of Yinson’s performance throughout the volatility of recent years is a testament of our sound business model and ability to adapt to change.
Our many activities on the FPSO front are a reflection of the industry’s healthy recovery post pandemic. As one of a very limited pool of FPSO specialists in the market, we are well positioned to consider the various opportunities that have opened up as projects are revived. In late June, we entered into an exclusive agreement with bp Exploration Angola Limited (“bp”), to reserve FPSO Nganhurra for use in bp’s Palas, Astrea and Juno Oil Fields until the end of the year, with an option for an extension until mid next year. Additionally, Yinson, through our JV company with Petrovietnam Technical Services Corporation, received a 12-month contract extension for FPSO PTSC Lam Son, valued at approximately USD18.1 million until 30 June 2023. We are also progressing other opportunities in West Africa, and we look forward to sharing more news on these developments very soon.
Yinson Renewables (“YR”) continues to grow its global presence and project pipeline, most recently making its entry into Indonesia through the acquisition of Indonesia-incorporated turnkey solar company PT Ineco Solar Solutions (“Inecosolar”). Inecosolar is a well-established solar system provider in Indonesia with a track record delivering residential and commercial rooftop solar systems across Bali, Gili, East Java and West Nusa Tenggara. One of YR’s key strategies is working with capable local partners who have the on-the-ground knowledge of local conditions. Our strategy with Inecosolar is to grow in the commercial and industrial rooftop PV system segment, as an entry into a growing renewables market with huge potential as the market develops. Globally, through the efforts of the YR team together with our local partners, we have grown our renewables pipeline to over 5 GW, including over 3.5 GW of early stage projects, and 1.5 GW for which planning consent is in process.
It has been a busy and fruitful month for Yinson GreenTech (“YGT”), with several strategic partnerships formed towards achieving our vision of creating an affordable, sustainable and technology-driven mobility ecosystem that runs on clean energy. We signed a Memorandum of Understanding (“MoU”) with leading global technology hub developer Cyberview Sdn Bhd to develop a Smart Mobility ecosystem in Cyberjaya, as well as with AEON CO. (M) Bhd and AEON BiG (M) Sdn. Bhd, to provide charging infrastructure across AEON Group’s shopping outlets and introduce e-mobility leasing solutions for their logistics fleet. In addition, we kicked off collaborations with Dinamikjaya Motors Sdn Bhd and Gocar – the former as EV leasing partners, making electric vehicles like the Kia EV6 available for lease through YGT while the latter is to provide charging infrastructure facilities and solutions, along with customer care services to GoCar users.
Our innovative financial solutions, strong governance and sustainability performance continue to be acknowledged by awarding bodies globally. In the last quarter, we received recognitions from International Finance Awards, Australasian Reporting Awards, The Asset Triple A, Global Islamic Finance Awards, Asiamoney, Employee Experience Awards, and Deloitte Private. We are also pleased to chart a significant improvement in our ratings from FTSE4Good, placing the Group in the top 14th percentile in its Industry Classification Benchmark Supersector as assessed by FTSE Russell. These awards and acknowledgements give us confidence that we are on the right track, and spur us on in our efforts to continue bringing value to our stakeholders.
Yinson has been building our foundations in sustainability for many years, and we are encouraged to see our investment in the energy transition bearing fruit, as seen by the synergistic growth of our offshore production, renewables and green technologies divisions. As the world continues to transition to a low carbon economy and as ESG considerations drive investment decisions everywhere, we believe that our leadership position in the sustainability space will allow us to remain resilient and adaptable.
