Latest news with #Yinson
The Star
11 hours ago
- Business
- The Star
Enhanced earnings visibility likely for Yinson
CIMB Research is maintaining its forecasts for Yinson. PETALING JAYA: Yinson Holdings Bhd is poised to enhance its long-term earnings visibility and deepen its foothold in the offshore energy sector, supported by a recent contract win that further expands its recurring income base and solidifies its regional presence. Analysts said they believe the deal announced earlier this week strengthens the group's position in Vietnam's offshore market, building on a decade of successful project execution and growing demand for cleaner energy infrastructure. In a recent report, CIMB Research said: 'We view this development as a strategic win for Yinson, reinforcing its position as a leading independent offshore asset owner and operator. 'The award brings Yinson's fleet to 11 vessels, including the ongoing conversion of floating production, storage and offloading vessel (FPSO) Agogo, and marks its second floating storage and offloading (FSO) contract in less than a year. This reflects both the urgency of regional energy security and the shift toward cleaner energy solutions,' the research house added. Yinson recently announced it had secured a contract from Phu Quoc Petroleum Operating Co for the charter, operation and maintenance of an FSO vessel for the Block B field off Vietnam via a 49%-owned joint venture with PetroVietnam Technical Services Corp (PTSC). The firm portion of the charter spans 14 years, with an additional nine years of optional extensions, and carries an estimated contract value of US$600mil. First oil is expected by the third quarter of 2027. The collaboration with PTSC marks Yinson's fourth partnership with the Vietnamese firm and further underscores its track record in the country. 'Once operational, Yinson is set to benefit from a steady, recurring income stream from the Block B FSO,' CIMB Research said. With capital expenditure (capex) for the FSO estimated at approximately US$225mil (based on management's guidance of US$200mil to US$250mil), alongside an 85% margin in earnings before interest, taxes, depreciation and amortisation, a 23-year contract term, and Yinson's 49% effective ownership stake in the joint-venture company, the the research house estimated that the project could yield an internal rate of return of 9.3%. While the financial contribution may not be substantial in the near term, the project provides additional upside to Yinson's solid earnings base. 'We project profit from the venture to range from RM6mil to RM22mil over the 23-year contract duration,' it added. Kenanga Research also echoed a positive stance on the development. 'The win is viewed positively and based on an assumed US$200mil capex and a 9.3% discount rate, we estimate a discounted cash flow accretion of one sen per share. The expected earnings contribution is minimal at RM13mil, accounting for about 3% of 2026's estimated profit after tax,' Kenanga Research said. Given Yinson's established track record in Vietnam and the use of a familiar shipyard, previously used for FPSO Lac Da Vang, the research house sees limited execution risk. It assumes the project to be fully internally funded, considering its relatively modest scale and the joint venture's structure. Kenanga Research revised its target price slightly to reflect the new contract, raising its sum-of-parts based target price to RM3.16 from RM3.15 after accounting for the potential discounted cash flow value of the win. It maintained its 'outperform' recommendation on Yinson. CIMB Research, meanwhile, is maintaining its forecasts and target price of RM2.93 for Yinson. 'We reiterate our 'buy' call on the company, underpinned by robust long-term earnings visibility from its substantial US$19.6bil order book, including potential extensions, stretching to 2048,' it said.
BusinessToday
a day ago
- Business
- BusinessToday
New Vietnam Deal Minimal Impact On Yinson's Bottom Line
CIMB Investment Bank Bhd (CIMB Securities) has reiterated a BUY call on Yinson Holdings Bhd with an unchanged target price of RM2.93, citing the group's latest contract win in Vietnam as a strategic boost to its long-term earnings visibility. The counter last traded at RM2.39. The house highlighted that Yinson, through a joint venture with PetroVietnam Technical Services Corporation (PTSC), secured a contract to provide, charter, operate and maintain a floating storage and offloading (FSO) vessel for the Block B Field offshore Vietnam. The deal, signed with Phu Quoc Petroleum Operating Company, carries a firm tenure of 14 years with an optional nine-year extension and is valued at approximately US$600 million over the full 23-year period. The Block B gas development project, which includes Blocks B&48/95 and 52/97, lies in shallow waters about 250km from Ca Mau Province and 400km from the O Mon Power Complex. CIMB Securities noted the project's location outside the disputed nine-dash line in the South China Sea reduces geopolitical risks, making it a secure investment. The development is expected to deliver over 5 billion cubic metres of gas annually to customers in southwest Vietnam, addressing the country's growing energy needs while contributing economic value to stakeholders. The new FSO, a double-hull vessel with storage capacity of about 350,000 barrels, will be built at shipyard facilities in Nantong, China, with first oil targeted for 3Q27. Incorporating dual-fuel technology for improved fuel efficiency and reduced emissions, the unit aligns with Yinson's sustainability goals. CIMB Securities said this marks Yinson's second FSO award in less than a year and its fourth collaboration with PTSC, reinforcing its standing as a leading independent offshore asset operator in the region. While the estimated capex for the project is about US$225 million, Yinson's 49% effective stake and an expected EBITDA margin of 85% could generate an internal rate of return of 9.3%, according to CIMB estimates. However, the house added that the contract's overall impact on Yinson's bottom line and SOP valuation will be minimal, with profit contribution projected between RM6 million and RM22 million over the contract term. CIMB Securities remains optimistic on Yinson's long-term prospects, supported by its sizeable US$19.6 billion order book, which includes potential extensions stretching to 2048. The research house also expects strong earnings growth in FY26 and FY27, driven by full-year contributions from three new floating production storage and offloading (FPSO) units — Maria Quiteria, Atlanta and Agogo. Related
Forbes
a day ago
- Business
- Forbes
Malaysian Tycoon Lim Han Weng's Yinson Wins $600 Million Vietnam Contract
Yinson took delivery of Agogo FPSO, its largest vessel, in February. Yinson Production—controlled by Malaysian tycoon Lim Han Weng's Kuala Lumpur-listed Yinson Holdings—won a $600 million contract to supply a new floating storage and offloading (FSO) vessel to its joint venture company in Vietnam Under the deal, Yinson Production will lease and operate the FSO vessel to PTSC South East Asia, which it jointly owns with PetroVietnam Technical Services Corp., over a 14-year contract period, with an option to extend for another nine years, Kuala Lumpur-based Yinson Production said in a statement. Phu Quoc Petroleum Operating Co., which is developing offshore gas projects in southwest Vietnam, awarded the contract to PTSC South East Asia, Yinson Production said. 'This contract is anticipated to achieve first condensate in the third quarter 2027,' the company said. The vessel can store up to 350,000 barrels of condensate, the liquids formed from gas. The Vietnam contract will bring to 11 the offshore vessel fleet size of Yinson, one of the world's biggest providers of floating production, storage and offloading (FPSO) vessels to the global oil and gas industry with over $19 billion worth of orders until 2048. FPSO vessels extract hydrocarbons from deep-sea wells, sift impurities, store the crude oil and transfer this to tankers to refineries. Yinson Production has recently won new projects in Vietnam. In November, a separate joint venture of Yinson Production and PTSC was awarded the contract for the provision, charter, operation and maintenance of an FSO for Murphy Oil's Lac Da Vang project. This was followed by the announcement in December of an 18-month extension for Yinson Production's FPSO PTSC Lam Son contract to June 2026. Besides Vietnam, the group has deployed FPSO vessels on long-term contracts, ranging from 15 to 25 years, in countries such as Angola, Ghana, Nigeria, Vietnam and Brazil. Yinson Holdings was founded in 1984 by its chairman Lim Han Weng and his wife as a transport and trading business that morphed into a supplier of offshore support vessels to the oil and gas industry a decade later. By 2013, it became a full-pledged operator of FPSOs when it acquired Norway's Fred Olsen Production. With a net worth of $480 million, the Lim family is among the wealthiest in Malaysia.
Barnama
a day ago
- Business
- Barnama
Kenanga, CIMB Maintain ‘Buy' On Yinson After US$600 Mln Vietnam Contract
BUSINESS KUALA LUMPUR, July 29 (Bernama) -- Kenanga Investment Bank Bhd and CIMB Securities Sdn Bhd have reiterated their 'Buy' calls on Yinson Holdings Bhd after it secured a contract worth around US$600 million to provide and charter a floating storage and offloading (FSO) vessel in Vietnam. (US$1=RM4.21). Yinson, via its joint venture PTSC South East Asia Pte Ltd, was awarded the contract by Vietnam's Phu Quoc Petroleum Operating Company for the offshore Block B field in southwest Vietnam. In a filing with Bursa Malaysia yesterday, Yinson said the contract involves the provision, charter, operation and maintenance of the FSO vessel for an initial term of 14 years, with an option for a further extension of up to nine years. 'The total contract value, including the possible extension, is estimated at around US$600 million. 'The FSO vessel will support gas production in the area, which aims to supply 5,073.5 million standard cubic metres of gas per year to customers in the Ca Mau and O Mon power complexes,' it said. Kenanga said it views the contract positively. Based on an assumed US$200 million capital expenditure and a 9.3 per cent discount rate, it estimates a discounted cash flow accretion of one sen per share. 'The expected earnings contribution is minimal at RM13 million, or around three per cent of our forecast profit after tax for the financial year ending 2026. 'Given Yinson's established track record in Vietnam and the use of a familiar shipyard, previously used for FPSO Lam Son, we see limited execution risk. We also assume the project will be fully internally funded, given its modest scale and the JV structure,' it said in a note today. The investment bank maintained its 'Buy' call with an upgraded target price (TP) of RM3.16 per share.
The Star
a day ago
- Business
- The Star
Yinson Holdings bags Vietnam FPSO charter contract
PETALING JAYA: Yinson Holdings Bhd 's joint venture PTSC South East Asia Pte Ltd (PTSC SEA) has secured a long-term charter contract worth an estimated US$600mil (RM2.54bil) to provide, operate and maintain a floating production, storage and offloading (FPSO) vessel for the Block B gas field development offshore Vietnam. In a Bursa Malaysia filing, Yinson said PTSC SEA – its 49:51 joint venture with PetroVietnam Technical Services Corp – signed a 14-year firm charter, with an option to extend for up to nine more years, with Phu Quoc Petroleum Operating Company (PQPOC) yesterday. 'The total contract value, including the possible extension period, is estimated to be in the region of US$600mil,' it noted. Yinson said PQPOC was established and nominated by Vietnam's state oil and gas group, Petrovietnam, to undertake its rights and obligations as the operator of Blocks B&48/95 and 52/97, and the area of joint development within those blocks. These are collectively referred to as the Vietnam Block B gas project, the company added. Trading ideas: Yinson, Zetrix AI, Ekovest, Insas, BFood, Ireaka, TechStore, Smile-Link, KAB, FSMB, MMC Port, Eco-Shop, Alpha IVF
