Yinson Holdings Berhad (“Yinson”, the “Company” or the “Group”), a global energy infrastructure and technology company, today announced its financial results for the second quarter ended 31 July 2024 (“Q2’FYE 2025”).
Latest highlights
- Solid and stable revenue from operational assets of RM754 million for Q2’FYE 2025.
- The Group announced the divestment of its Offshore Marine business to Icon Offshore Berhad.
- FPSO Atlanta has finalised its mooring campaign on 14 June 2024, while FPSO Maria Quitéria arrived at the Jubarte field safely on 10 August 2024 and now undergoing mooring activities.
- Agogo FPSO has substantially completed Phase 1 (repair and life extension) of the conversion project, and the project remains on track for first oil production in 2025.
- Yinson Renewables’ 97 MWp Matarani Solar project in Peru entered full operations in September, having commenced power export and sales in July, ahead of schedule.
- Yinson GreenTech’s marinEV commenced the inaugural commercial trials of the Hydromover with OPL Services.
Our operating assets continue to perform well, contributing to a 58% YoY increase in EBITDA and 9% increase in Profit After Tax (PAT) compared to the same period last year. This performance is set to strengthen, as our assets under construction commence their charter periods as planned within the next 16 months, paving the way for the Group’s continued growth and success as a global energy infrastructure and technology company.
Yinson announced the divestment of its Offshore Marine business to Icon Offshore Berhad (“ICON”), supporting the Group’s strategic decision to focus on its FPSO and energy transition businesses. Once the divestment is completed, Yinson will have a minority stake and board seat in ICON which will allow the Group to participate in the future growth of ICON. The divestment exercise is expected to be completed around Q1 of 2025 and has a positive impact on Yinson’s FYE 2025 earnings.
For Yinson Production, FPSO Maria Quitéria arrived at the Jubarte field on 10 August and its mooring and installation campaign is progressing well. FPSO Atlanta's mooring campaign at the Atlanta field was finalised on 14 June. Both Brazilian projects are on track to achieve first oil by the end of the year marking the start of firm charter periods that will significantly increase cash generation and shareholder value. Meanwhile, Agogo FPSO has completed its module lifting campaign at the West Hub of Block 15/06 offshore Angola. The project has substantially completed Phase 1 (repair and life extension) of the conversion project, ensuring the project remains on track for first oil production in 2025.
The team’s ability to deliver on its project milestones and maintain the confidence of the investor community has earned several recognitions in the quarter, including the Best Supplier Award in Petrobras “Obras De Engenharia Offshore” category and the Offshore East Deal of the Year Award from Marine Money for the corporate loan of up to USD 500 million closed in December 2023.
Yinson Renewables has made excellent progress. The Matarani Solar Project, a 97 MWp facility in Peru’s Arequipa region has now entered full operation, having commenced power export and sales in July, ahead of schedule. Meanwhile, our assets in the Bhadla and Nokh Solar Parks continue to generate stable power and provide predictable revenue streams. With the Matarani Project now in full operation, our total annual generation is expected to exceed 1 TWh.
Yinson GreenTech’s marinEV further advanced the decarbonisation of Singapore’s maritime industry with the launch of Hydromover’s first commercial trials with OPL Services, which included successfully facilitating a cargo transfer for Wilhelmsen Ships Services. In Malaysia, driveEV celebrated the handover of eight GAC AION Y Plus electric cars to leading construction firm PTT Synergy Group, in line with our goal of helping businesses decarbonise. Yinson GreenTech continues to support the Malaysian government’s sustainability goals, with chargEV offering free charging credits in conjunction with the Ministry of Transport’s JPJePlate initiative to standardise number plates for zero emission vehicles, while rydeEV participated in the MARiiCas programme to promote eco-friendly bike ownership with rebates. Through digitalEV, we partnered with global leader in electric vehicle interoperability, Hubject, to integrate its Plug&Charge technology into the chargEV network towards enhancing seamless EV charging in Southeast Asia.
Financial overview
Current quarter vs preceding quarter
For the quarter under review, the Group reported a lower revenue of RM2,142 million compared to Q1 FYE 2025's revenue of RM2,214 million. The QoQ decrease of RM72 million was mainly due to lower contribution from EPCIC business activities as a result of lower reported progress for the Group’s FPSOs under construction in the current quarter. The progress of our projects under construction is in line with the Group’s expectations.
The Group’s EBITDA for Q2’FYE 2025 stood at RM869 million, a 6% QoQ increase when compared to Q1’FYE 2025 of RM821 million. The increase was mainly due to one-off impact of reversal of impairment on a fund investment recognised in prior years of RM33 million.
The Group’s profit after tax for Q2’FYE 2025 increased by 6% QoQ or RM14 million to RM263 million as compared to RM249 million in the preceding quarter. The increase reflects the same drivers as for the Group’s EBITDA and decrease in tax expenses of RM38 million, offset by increase in finance costs of RM73 million.
Current 6-month period vs preceding year’s corresponding 6-month period
For the YTD Q2’FYE 2025, revenue decreased by 29% YoY to RM4,356 million as compared to RM6,131 million in YTD Q2’FYE 2024. The decrease in revenue was mainly due to lower contribution from EPCIC activities (based on progress of construction) as FPSO Maria Quitéria and FPSO Atlanta are 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. This was partially offset by higher contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023. The actual progress of our projects under construction is in line with the Group’s expectations.
The Group’s EBITDA for YTD Q2’FYE 2025 stood at RM1,690 million, a 30% YoY increase when compared to RM1,305 million in YTD Q2’FYE 2024. The increase was mainly due to the contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023.
The Group’s profit after tax increased by RM43 million or 9% YoY to RM512 million as compared to RM469 million for the corresponding financial period ended 31 July 2023. The increase was mainly due to the higher contribution from FPSO Anna Nery’s operations since first oil was achieved on 7 May 2023, which was partially offset by the lower contribution from the Group’s EPCIC business activities (based on progress of construction) and increase in finance costs of RM414 million arising from higher drawdowns of the Group’s financing facilities to support our project execution requirements.
Dividend
On 30 September 2024, the Directors has declared an interim single-tier dividend of 1.0 sen per ordinary share, amounting to approximately RM30 million for the financial year ending 31 January 2025 (“Q2 Interim Dividend FYE 2025”). This brings its 6M FYE 2025 total DPS to 2.0 sen. The dividend reinvestment plan (DRP) shall also apply to the Q2 Interim Dividend FYE 2025. Yinson is committed to making quarterly dividend payments in FYE 2025.
Environment, Social and Governance Highlights
Yinson continues to champion the development of a robust domestic carbon market, which we believe is crucial as we transition to a low-carbon economy. To this end, we were appointed as president of the Malaysia Carbon Market Association (MCMA), which was launched at the Bursa Carbon Exchange Forum 2024, as well as to the Climate Change Advisory Panel representing Malaysia at the upcoming 29th Conference of the Parties (COP29). We also participated in the Kuamut Rainforest Conservation Project carbon credit auction and signed an MoU with Fairatmos to advance innovative carbon offset projects.
Globally, we are strengthening our CSR efforts, especially towards youth empowerment and education in Ghana, Angola and Malaysia. We have hosted trainings, organised a reading and spelling competition, awarded scholarships, and donated books and school furniture in Ghana and Angola. We also organized a Children’s Day celebration for an orphanage in Malaysia and continued our collaboration with Teach For Malaysia.
During this period, we chalked up several recognitions including the ‘Most Honoured Company' by Institutional Investor Research in the 2024 Asia Pacific (Ex-Japan) Executive Team Ranking for the sixth consecutive year, Silver in the Transformation category at The Star’s ESG Positive Impact Awards 2023 and one of Malaysia’s Best Managed Companies by Deloitte Private for the third straight year
Closing statement
The results for Q2’FYE 2025 highlight our commitment to delivering strong financial performance while leading efforts to drive an inclusive energy transition. We remain focused on creating value for our shareholders and are optimistic about opportunities that lie ahead.
