Yinson Holdings Berhad (“Yinson”, the “Company” or the “Group”), a global energy infrastructure and technology company, today announced its financial results for the third quarter ended 31 October 2024 (“Q3’FY2025”).
Latest highlights
- Group EBITDA increased 27% YoY to RM2,515 million in 9M FY2025.
- Yinson Production achieved first oil for FPSO Maria Quitéria on 15 October; awarded a contract for a new FSO for Murphy Oil’s Lac Da Vang project in Vietnam through a joint venture with PTSC.
- Yinson Renewables signed a USD59 million senior secured green financing for the Matarani Solar Project in Peru with IDB Invest and Natixis Corporate & Investment Banking on 28 November and received an excellent SQS1 sustainability quality score from Moody’s Ratings
- Yinson GreenTech successfully launched the Hydroglyder, Singapore’s first fully electric hydrofoil vessel, on 19 November and announced the construction of the Hydromover 2.0 on 12 December
Our operating assets continue to perform well, having contributed to an 80% YoY increase in EBITDA and 36% increase in Profit After Tax (“PAT”) compared to the same period last year. This performance is set to strengthen, as our remaining 2 assets under construction, FPSO Atlanta and FPSO Agogo, will commence their charter periods within the next 16 months as planned, paving the way for the Group’s continued growth and success as a global energy infrastructure and technology company.
Yinson Production achieved a significant milestone during the third quarter FY2025 with the first oil of FPSO Maria Quiteria on 15 October, marking the start of its 22.5-year firm charter with Petrobras. The vessel achieved first oil approximately five months ahead of schedule. In addition, we expect first oil for our FPSO Atlanta during the fourth quarter FY2025, upon which the vessel will commence its 15-year firm charter (plus extension option). Construction of the Agogo FPSO continues to progress well and the vessel is on track for completion next year, with first oil anticipated before the end of CY2025.
The transition from construction to operations of vessels resulted in an increase of the non-EPCIC income and cash flows, unlocking value for our stakeholders, whilst the EPCIC revenue are reduced. With vessels achieving first oil and the Agogo FPSO well underway for completion, Yinson Production is actively developing new, value accretive projects to further build the fleet. Subsequent to the end of the third quarter FY2025. Yinson Production, though a joint venture with its longstanding partner PetroVietnam Technical Services Corporation, entered into a contract for the provision, charter, operation and maintenance of a new floating storage and offloading (“FSO”) vessel for the Lac Da Vang project in Vietnam with a wholly owned subsidiary of Murphy Oil Corporation. In addition to contributing to Vietnam's energy security and energy transition, this new FSO is the first project with Murphy Oil who is active in geographies relevant to Yinson Production, opening up new opportunities.
In terms of financing activities, Yinson Production successfully completed the sale of an 11.8% stake in FPSO Anna Nery to Kawasaki Kisen Kaisha, Ltd. (“K” Line) on 22 October as part of its active capital structure management. “K” Line is the second strategic investor in FPSO Anna Nery following Sumitomo Corporation with an equity stake of 25%, and this transaction further strengthens the partnership with both, “K” Line and Sumitomo, who also hold an equity stake in the FPSO John Agyekum Kufour. On 20 November, Yinson Production successfully priced and placed a USD 100 million tap issue on its existing 5- year senior secured corporate bond. The tap issue was several times oversubscribed and increased the total value of the senior secured corporate bond to USD 600 million. The team continues to receive recognitions for its innovative financing activities, most recently the LatinFinance Awards 2024 in the Oil & Gas Financing of the Year category and the Global Banking & Markets Latin America Awards 2024 in the Project Bond Deal of the Year category, each for the USD 1.035 billion project bond issued earlier this year for the refinancing of FPSO Anna Nery.
Yinson Renewables successfully closed a USD 59 million senior secured green financing for the 97MWp Matarani Solar Project in Peru with IDB Invest and Natixis Corporate & Investment Banking on 28 November. The finance facility, which is structured in line with the Green Loan Principles (2023), reflects the confidence of the Peruvian investor community in Yinson Renewables’ ability to deliver quality renewable energy solutions to support Peru’s energy transition. The Matarani Solar Project has been fully operational since September 2024 and is estimated to be able to satisfy the electricity needs of approximately 62,000 Peruvian households and prevent the emission of more than 56,000 tonnes of CO2 per year. Earlier in the quarter, Yinson Renewables had received an excellent SQS1 sustainability quality score from Moody’s Ratings on its Green Financing Framework, which validates its strategic direction and provides an attractive investment case for the broader investment base.
Yinson GreenTech had a busy quarter, starting with marinEV as it launched the Hydroglyder, Singapore’s first fully electric hydrofoil vessel. During the launch, it also introduced the Marine Digital Platform, which enables seamless advisory solutions, charging infrastructure, smartEV telematics, booking, remote monitoring and route optimisation to drive greater efficiency and effectiveness for electric assets. marinEV also took the opportunity to announce its new and upgraded design and construction of the Hydromover 2.0 that is comparatively bigger than its prototype version. marinEV’s hard work was recognised when it won The Asset ESG Corporate Awards 2024 for the Best Initiative in Innovation Award and the Green Ship Award for the Hydromover at the Singapore Registry of Ships Forum 2024.
We continue to expand our charging infrastructure with chargEV introducing DC fast chargers in Starling Mall for public use. Notably, our nation-building efforts have earned chargEV the Anugerah Hijau Melaka 2024 (Green Award) for its exemplary contributions to green infrastructure in Malacca. Then, in our emobility segment, drivEV showcased its advanced fleet telematics solutions at UEM Edgenta’s ESG Immersion Month. This solution was demonstrated at a handover session of Citroën e-Dispatch with Kuehne+Nagel Singapore.
Financial overview
Current quarter vs preceding quarter
For the quarter under review, the Group reported a lower revenue of RM1,853 million compared to Q2’FY2025's revenue of RM2,142 million. The decrease of RM289 million was mainly due to lower contribution from EPCIC business activities as a result of lower reported progress of the Group’s FPSOs under construction in the current quarter, moderated by the gain on the remeasurement of finance lease receivables arising from the lease extension for FPSO Abigail Joseph and effect of charter day rate escalation for FPSO Maria Quitéria. The actual progress of our projects under construction is in line with the Group’s expectations.
The Group’s EBITDA for Q3’FY2025 stood at RM825 million, a 5% QoQ decrease when compared to Q2’FY2025 of RM869 million. The decrease reflected the same drivers as the Group’s revenue, which was partially offset by one-off impacts of reversal of impairment of property, plant and equipment of RM18 million and gain on disposal of a subsidiary of RM163 million (including recycling of associated foreign currency translation reserves to profit or loss).
The decrease in the Group’s PAT for Q3’FY2025 by RM19 million or 7% reflected the same drivers as the Group’s revenue and EBITDA.
Current 9-month period vs preceding year’s corresponding 9-month period
For the YTD Q3’FY2025, revenue decreased by 31% YoY to RM6,209 million as compared to RM8,944 million in YTD Q3’FY2024.
The decrease in revenue was mainly due to lower contribution from EPCIC activities (based on progress of construction) as FPSO Maria Quitéria achieved first oil on 15 October 2024 and FPSO Atlanta is expected to be completed by the end of the current financial year and the absence of the one-off effect of the exercise of the call option for the acquisition of AFPS B.V. completed on 31 July 2023.
The lower contribution from EPCIC activities was partially offset by higher contribution from FPSO Anna Nery’s and FPSO Maria Quitéria’s operations and gain on remeasurement of finance lease receivables arising from the lease extension for FPSO Abigail Joseph and effect of charter day rate escalation determined at effective dates as stipulated in the charter contracts for FPSO Maria Quitéria of RM175 million and RM139 million respectively. The actual progress of our projects under construction is in line with the Group’s expectations.
The Group’s EBITDA for YTD Q3’FY2025 stood at RM2,515 million, a 27% YoY increase when compared to RM1,981 million in YTD Q3’FY2024. The increase was mainly driven by the higher contribution from our operational assets, FPSO Anna Nery, FPSO Maria Quitéria and FPSO Abigail Joseph, partially offset by lower contribution from EPCIC business activities, as mentioned above.
The Group’s YTD Q3’FY2025 profit after tax increased by RM9 million or 1% to RM756 million as compared to RM747 million in YTD Q3’FY2024. The increase reflected the same drivers as for the Group’s EBITDA, offset by increase in finance costs of RM613 million arising from higher drawdowns of the Group’s financing facilities to support the project execution requirements.
Dividend
On 30 September 2024, the Directors has declared a quarterly interim single-tier dividend of 1.0 sen per ordinary share for the financial year ending 31 January 2025 (“Q2 Interim Dividend FY2025”), amounting to approximately RM29 million. The DRP shall apply to the Q2 Interim Dividend FY2025.
On 13 December 2024, the Directors declared a quarterly interim single-tier dividend of 1.0 sen per ordinary share for the financial year ending 31 January 2025 (“Q3 Interim Dividend FY2025”), amounting to approximately RM30 million. The DRP shall also apply to the Q3 Interim Dividend FY2025.
Environment, Social and Governance Highlights
Our continuous efforts into building a sustainable company has been recognised by strong ESG ratings from both S&P Global CSA and Sustainalytics this quarter. S&P Global CSA gave us an ESG score of 64, a 10.3% improvement over last year, which places us in the 97th percentile in the Energy Services Industry globally. For Sustainalytics, we are now ranked number 1 within the Energy Services Industry worldwide, with a ESG Risk Rating of 15.3 (‘Low risk'). Our strong ESG performance continues to be celebrated by various global recognition bodies including United Nations Global Compact Malaysia and Brunei (“UNGCMYB”), The Asset ESG, HR Asia, National Annual Corporate Report Awards (“NACRA”) and Singapore Registry of Ships (“SRS”) Forum.
Yinson continues to be proactive in advocating for climate actions and the development of vibrant local and regional carbon markets. Yinson participated in the 29th COP29 (“Conference of the Parties”) in Azerbaijan. Yinson as the chair of Malaysia Carbon Market Association (“MCMA”) participated in a Memorandum of Collaboration (“MoC”) exchange with four other major ASEAN carbon market associations at the 29th COP29 (“Conference of the Parties”) in Azerbaijan. The MoC aims to improve interoperability between ASEAN carbon markets, enhance carbon price efficiency, and support highquality carbon projects in developing and emerging communities.
Closing statement
2025 has been a solid year of delivery and we continue to demonstatedemonstrate that we are capable of strong execution. Our financial results reflect our unwavering determination to deliver long-term value for our stakeholders amidst challenging headwinds in the current business environment. Our strategic initiatives and operational excellence position us well to capitalise on future opportunities and drive continued growth.
Finally, Yinson wishes to record our highest appreciation and acknowledgement to the Prime Minister of Malaysia The Honourable Anwar Ibrahim, Minister of Investment, Trade and Industry Malaysia, Tengku Zafrul bin Tengku Abdul Aziz and Minister of Foreign Affairs Malaysia, Haji Mohamad bin Haji Hasan, together with other esteemed members of the government and business delegation, for the privilege of hosting them during their recent trip to the South American continent. We are honoured to have The Honourable Prime Minister to launch Yinson Renewables’ Matarani Solar Project in Peru and as our Guest of Honour to celebrate the three FPSO units that Yinson Production has in Brazil and the strong economic relationship between Malaysia and Brazil.
