(Jan 21): Yinson Production Offshore Pte Ltd plans to allocate US$4.5 billion to US$6 billion (RM20.2 billion to RM30 billion) capital expenditure in the next three years to expand ahead of a possible initial public offering in the US.

“Listing is something that we would be talking about in three to five years,” chief financial officer Markus Wenker said in an interview last week. While the company has options, an initial public offering (IPO) in North America is the preferred choice, he said, adding that plans would depend on market sentiment and potential valuation.

The unit of Malaysian energy infrastructure firm Yinson Holdings Bhd (KL:YINSON) last week signed an agreement with Abu Dhabi Investment Authority, British Columbia Investment Management Corp and RRJ Capital to raise US$1 billion as part of a pre-IPO funding round. Wenker said it was one of the largest structured equity deals in Southeast Asia.

The transaction values Yinson Production at about US$3.7 billion and “sets the floor” on its worth, he said, adding that it would need to command a higher valuation in an IPO to be accretive to shareholders.

Wenker also said the company has created a “financing ecosystem” where it is less reliant on bank funding. It paid off almost US$1.3 billion of loans last year, and banks are making approaches about new projects, with more than US$1 billion in reverse inquiries, he said.

Yinson Production has a fleet of 10 vessels, eight of which are operating. One FPSO — floating production, storage and offloading — will come on stream later this year, while an FSO — floating, storage and offloading — will join towards the end of 2026, Wenker said. The fleet could grow to 13 vessels in the next three years, he said.

The company will start one or two new projects within the next 12 months, Wenker said, without disclosing where. The lead time for each new FPSO from contracting to first oil is around 30 to 34 months, he said. Yinson Production has more than US$22 billion of contracted revenue until 2048, he added.

Yinson’s shares fell about 4% on Monday, following a similar drop last Friday, taking their decline this month to 8% and giving the parent a market value of RM7.1 billion (US$1.6 billion), less than half of Yinson Production.

Uploaded by Jason Ng