Yinson stays optimistic amid strong FPSO demand and sustainability focus

KUALA LUMPUR: Yinson Holdings Bhd is optimistic about its core businesses, believing its investment in sustainability will provide a strong foundation amid uncertainties.

These foundations have enabled the company to remain agile, making sound decisions to seize opportunities while effectively managing risks.

“With our focus on delivery and sustainability, we believe that we can weather the ups and downs of the energy market while delivering sustained value to our stakeholders.

“Supported by our existing portfolio of long-term contracts, we believe we can achieve satisfactory results for the financial year ending Jan 31, 2026 (FY26),” Yinson said in the notes accompanying its financial results.

The group said the FPSO market remained strong, driven by demand for contractors like Yinson, which had an advantage in emissions reduction technologies and a solid track record in on-time delivery, safety, and operational performance.

It noted that global FPSO demand was rising, with Brazil being the largest demand centre, followed by West Africa.

In the fourth quarter ended Jan 31, Yinson’s net profit dropped nearly 50% to RM146mil, or earnings per share of 3.80 sen, compared with RM278mil, or 8.40 sen, in the same quarter last year.

Revenue for the quarter tumbled 48% to RM1.4bil against RM2.7bil posted a year ago.

The lower revenue was mainly due to lower contributions from engineering, procurement, construction, installation and commissioning (EPCIC) business activities as a result of lower reported progress for the group’s floating production, storage, and offloading (FPSO) under construction in the current quarter.

Yinson said the actual progress of its projects under construction was in line with its expectations.

For FY25, Yinson posted a net profit of RM752mil, down 22% from RM964mil while revenue fell 34.7% to RM7.6bil against RM11.65bil.

Yinson has declared a final dividend of 1.0 sen per share for FY25, bringing the total dividend for the year to 4.0 sen.

Shareholders may reinvest this dividend into new shares through the Dividend Reinvestment Plan (DRP), pending Bursa Malaysia’s approval. If not approved, the dividend will be paid in cash. The entitlement and payment dates will be announced later.

Group executive chairman Lim Han Weng said the company welcomed its new strategic partners—ADIA, BCI, and RRJ Group for Yinson Production, as well as Khazanah for Yinson GreenTech.

“The US$1bil investment from ADIA, BCI and RRJ Group will strengthen Yinson Production’s ability to seize opportunities in the robust FPSO market while enabling Yinson Group to return capital to shareholders and fund our energy transition businesses, Yinson Renewables and Yinson GreenTech.

“Meanwhile, Khazanah’s investment in chargEV will allow us to support Malaysia’s National Energy Transition Roadmap (NETR) and MITI’s goal of installing 10,000 EV charging points nationwide, contributing to the country’s net-zero ambitions,” he added.

“These strategic moves come amid strong momentum for the group, marked by FPSO Atlanta achieving first oil, naming ceremony and sail away of the Agogo FPSO to Angola, and the contract extension of FPSO PTSC Lam Son.”