KUALA LUMPUR – 17 December 2021 YINSON HOLDINGS BERHAD (“Yinson” or the “Group”), a global energy infrastructure and technology company, today announced its third quarter results for the financial year ending 31 January 2022 (“Q3’ 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 reported a lower revenue of RM820 million as compared to Q2’FYE2022 revenue of RM1,054 million. This decrease was mainly attributed to lower scheduled progress from EPCIC business activities, i.e. the FPSO Anna Nery conversion.
The Group’s PAT for the third quarter of the current financial year decreased by 21% or RM33 million to RM126 million as compared to RM159 million in the immediate preceding quarter. The decrease was mainly due to the above-mentioned lower contribution from EPCIC business activities, unfavourable net foreign exchange movement of RM16 million and lower share of results from joint ventures of RM8 million.
QTD CORE & REPORTED PAT (RM'mil)
Current 9 months period vs preceding year’s corresponding 9 months period:
* Earnings associated with business operations, excluding earnings from non-operation items and gains or losses from nonrecurring items.
For the cumulative 9 months (“YTD Q3’FYE2022”), revenue decreased by 20% or RM736 million to RM2,866 million as compared to RM3,602 million in YTD Q3’FYE2021, which was mainly attributed to the absence of the one-off outright sale recognition of RM1,139 million from FPSO Abigail-Joseph upon its lease commencement in October 2020, partially offset by the increased contribution from EPCIC business activities related to FPSO Anna Nery.
The Group’s PAT for YTD Q3’FYE2022 increased by RM120 million or 39% to RM430 million as compared to RM310 million in YTD Q3’FYE2021, which was mainly attributed to fresh contribution from FPSO Abigail-Joseph which commenced its lease in October 2020, absence of contract acquisition costs written off of RM92 million, absence of impairment loss on tax recoverable of RM12 million, decrease in impairment loss on property, plant and equipment of RM19 million, increase in favourable foreign exchange movement of RM17 million and absence of one-off RM85 million deposit forfeiture related to the lapsed proposed part acquisition of Ezion Holdings Limited in September 2020. The positive contributions were partially offset by the absence of one-off outright sale contribution from FPSO Abigail-Joseph upon its lease commencement in October 2020, decrease in other income of RM11 million and increase in finance costs of RM33 million where this increase in finance costs was 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
In the previous quarter, the Board of Directors declared an interim single-tier dividend of 4.0 sen per ordinary share for the financial year ending 31 January 2022, amounting to approximately RM43 million, which was paid on 17 December 2021. The interim single-tier dividend entitlement date was 30 November 2021.
CHAIRMAN COMMENTARY – MR. LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN OF YINSON
Once again we are pleased to announce a strong 9 months’ performance with a 39% increase in profit after tax as compared to last financial year. With our strong order book of approximately RM60 billion, we are optimistic that we can weather through potential economic volatility and continue delivering on our commitments to all our stakeholders.
On 8 December, we announced the successful pricing of Malaysia’s first Sustainability-Linked Sukuk via the issuance of RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah pursuant to its Islamic Medium Term Notes Programme of up to RM1.0 billion in nominal value. The sukuk was oversubscribed by 1.66 times, prompting an offer upsize from RM700 million to RM1.0 billion. A unique feature of the sukuk is its link to Yinson’s Sustainability Performance Targets, which would trigger profit rate step-ups across remaining profit payment dates should the targets not be met. Yinson views the deal as both a challenge and a golden opportunity for the Group to demonstrate our commitment and actions taken to achieve our climate-related targets.
The sukuk is one of several corporate sustainability milestones achieved this quarter. We are pleased to have also launched our Climate Goals Roadmap on 22 October 2021, which provides a forward-looking trajectory of Yinson’s carbon profile up to 2050, highlighting specific action plans that are aligned to international standards and frameworks. This quarter, we have also been awarded the ISO 37001 AntiBribery Management System (ABMS) certification from Bureau Veritas (“BV”) in recognition of our robust ABMS framework and processes, making Yinson amongst one of the first oil and gas companies in Malaysia to be awarded this certification by BV. Our sustainability efforts continue to be recognised out in the marketplace, most recently by PwC Malaysia’s Building Trust Awards where we came in second, and LinkedIn Talent Awards, where we were a finalist in the Diversity Champion category.
Our Green Technologies Division, YGT, has been actively expanding its footprint in the marine, mobility and energy space over the last quarter, towards our goal of achieving a globally integrated, technologically advanced clean mobility & logistics ecosystem. We invested in Canada-based energy storage solutions company Shift Clean Solutions (formerly known as SPBES), with the aim of accelerating the large-scale rollout of Shift’s battery solutions in Southeast Asia and beyond, within the marine segment. We also inked a term sheet with GreenTech Malaysia Alliances Sdn Bhd (a subsidiary under the Malaysian Green Technology and Climate Change Corporation) to progress towards the setting up of a joint venture, with majority stake by Yinson, to be a major player as the EV Charge point operator in Malaysia within the energy segment. Work is well underway to operationalise our plans for these green tech investments, and we look forward to sharing updates with you soon.
As the year draws to a close, we would like to express our sincere thanks to our shareholders and stakeholders, not least our employees and crew, for your continued trust in us. We have achieved many milestones in 2021 which would not have been possible without your loyal support. Wishing you a wonderful festive season and a happy new year 2022.
