KUALA LUMPUR – 29 March 2022 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), a global energy infrastructure and technology company, today announced its fourth quarter results for the financial year ended 31 January 2022 (“Q4’FYE2022”).
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’s revenue decreased by 10% to RM741 million as compared to Q3’FYE2022 revenue of RM820 million. The decrease was mainly attributed to lower progress from EPCIC business activities, i.e. the FPSO Anna Nery conversion.
The Group’s profit after tax for the fourth quarter of the financial year under review decreased by 25% or RM31 million to RM94 million as compared to RM125 million in the immediate preceding quarter. The decrease was mainly attributable to the above-mentioned lower contribution effect from EPCIC business activities, fair value loss on other investments of RM29 million, higher financing costs of RM16 million, mainly arising from drawdown of the RM1 billion Sustainability-Linked Sukuk Wakalah in December 2021 and one-off cost incurred for early re-financing of the existing loans for the Renewables segment and increase in income tax expense of RM21 million, which were partially offset by an increase in other income of RM46 million.
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 Q4’FYE2022, revenue decreased by 26% to RM3,607 million as compared to RM4,849 million, which was mainly attributable to the one-off outright sale recognition of RM1,095 million from FPSO Abigail-Joseph upon its lease commencement in October 2020, lower contribution from EPCIC business activities related to FPSO Anna Nery and lower contribution from charter of VLCC tankers.
The Group’s profit after tax for YTD Q4’FYE2022 increased by RM112 million or 27% to RM524 million as compared to RM412 million for the corresponding financial year ended 31 January 2021, attributed to fresh contribution from FPSO Abigail-Joseph which commenced its lease in October 2020. Additional positive contributions for the reported period also came from the absence of contract acquisition costs written off of RM104 million, absence of impairment loss on tax recoverable of RM12 million, decrease in impairment loss on property, plant and equipment of RM30 million, increase in favourable foreign exchange movement of RM40 million and absence of one-off RM84 million deposit forfeiture related to the lapsed proposed part acquisition of Ezion Holdings Limited in September 2020. The positive contributions were partially offset by fair value loss on other investments of RM29 million and increase in finance costs of RM69 million. The increase in finance costs was partially offset by the absence of one-off recycling of remaining deferred financing cost of RM41 million associated to the repaid loan upon completion of FPSO JAK's refinancing exercise in April 2020.
YTD CORE & REPORTED PAT (RM'mil)
DIVIDEND
During the current financial year, the Group paid a final single tier dividend for the financial year ended 31 January 2021 and an interim single-tier dividend for the financial year ended 31 January 2022, which amounted to 2.0 sen and 4.0 sen per ordinary share, respectively.
The Board of Directors has further proposed a final single-tier dividend of 2.0 sen per ordinary share for the financial year ended 31 January 2022. The proposed dividend is subject to shareholders’ approval at the forthcoming Annual General Meeting. If approved, the entitlement date and payable date for the dividend are expected to be 4 August 2022 and 30 August 2022 respectively.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
We are pleased to announce that the Group’s fourth quarter performance is within expectations and the Group achieved solid earnings for the full financial year. The world economy continues to be volatile, with rising inflation, soaring energy and commodity prices and geopolitical tensions including the war between Russia and Ukraine. Nonetheless, the Group’s strong fundamentals, backed by a strong and experienced management team, have allowed us to remain resilient through the turbulence. During this juncture, the Group has been relentless in our sustainability pursuits while our divisions chalked up new projects, further stamping our position as a global energy infrastructure and technology provider.
Soon after the launch of our Climate Goals Roadmap, we published our inaugural Task Force on ClimateRelated Financial Disclosure-aligned Climate Report, which discloses on how we manage climate-related issues, risks and opportunities. Climate change is an increasingly urgent issue and we are committed to contribute towards forming the world’s collective foundation for a robust, equitable and sustainable economy.
Recently, we announced our intention to undertake a 1-for-1 Bonus Issue, as a form of reward to existing shareholders for their continued support and to encourage greater participation in the Group’s equity given the larger share base. Upon completion of the proposed Bonus Issue, we also intend to undertake a Renounceable Rights Issue to raise gross proceeds of approximately RM1.1 billion to RM1.22 billion that comes with free detachable warrants to raise up to an additional RM0.85 billion. This equity fund raising exercise will improve our net gearing and financial position. The proceeds will be used to part finance our new FPSO projects and our expansion into renewables and green technology businesses. I am pleased to announce that these proposals were approved at our Extraordinary General Meeting held today.
Our Offshore Production Division has been busy in Brazil where we were awarded two FPSO projects. We signed firm contracts with Petrobras for the charter, operations and maintenance of FPSO Maria Quitéria, and Enauta for the provision, operation and maintenance of FPSO Atlanta. FPSO Atlanta has embarked on an 18-month redeployment programme and is on track for completion by the first half of 2024. Elsewhere, it was good news for FPSO PTSC Lam Son as it received a 6-month extension to its Bareboat Charter Contract until 30 June 2022.
Meanwhile, our Renewables Division is on track to be a leading global renewable energy independent power producer with the latest acquisition of two renewable energy generation projects in Brazil. The acquisition marked our foray into the Brazilian renewable energy generation market and the expected combined installed capacity of the wind energy projects is 486MW. Our renewables pipeline is now between 3 and 5GW across Latin America, Europe and Asia Pacific region, with many new partnerships formed, including close to 1.5 GW of projects in the development and consenting phase moving towards ready-to-build status.
Following the signing of the term sheet last October, our Green Technologies Division has entered into a joint venture shareholders’ agreement with GreenTech Malaysia Alliances Sdn Bhd, a wholly owned subsidiary under the Malaysian Green Technology and Climate Change Corporation, to accelerate Malaysia’s development of electric vehicle charging infrastructure. Subject to satisfaction of the conditions in the agreement, we will be the majority shareholder in the joint venture company which will operate the electric vehicle charging network under the chargEV brand. chargEV is currently Malaysia’s largest EV charging network with over 400 charging stations nationwide.
I would also like to take this opportunity to update on our Hydroglyder that we first introduced to the market in 2021. The Hydroglyder, which features advanced technologies such as hydrofoil and swappable batteries, has come a long way with the vessel scheduled to be built in Malacca in June 2022 and ready for test in Q1 2023.
It looks like we will have a busy season ahead with these projects in hand. With our experience and expertise, we are confident of delivering the results that our stakeholders expect of us. On behalf of the Board of Directors and management at Yinson, I would like to take this opportunity to thank our shareholders and stakeholders for their continued support.
