KUALA LUMPUR (March 28): Yinson Holdings Bhd’s (KL:YINSON) latest quarterly net profit halved to RM146 million from RM278 million a year earlier, mainly due to lower contribution from its engineering, procurement, construction, installation and commissioning (EPCIC) business. Earnings per share dropped to 3.8 sen from 8.4 sen.

The floating storage, production and offloading (FPSO) vessels operator also attributed the lower earnings to higher finance costs, and fair value losses recognised for the green technologies segment.

Revenue for the fourth quarter ended Jan 31, 2025 (4QFY2025) also almost halved to RM1.4 billion, from RM2.7 billion in 4QFY2024, Yinson's bourse filing on Friday showed.

Finance costs jumped RM160 million, or 50.6% to RM476 million.

For the full year, Yinson’s net profit fell 22% to RM752 million from RM964 million in FY2024, while revenue dropped 34.7% to RM7.61 billion from RM11.65 billion.

The group declared a final dividend of one sen per share, bringing full year dividend payout to four sen per share, compared with three sen in FY2024

As at Jan 31, 2025, Yinson’s total loans and borrowings stood at RM16.05 billion, down 1.62% from RM16.32 billion a year earlier. About 88% or RM14.11 million of its total loans and borrowings are denominated in US dollars. Its net gearing ratio, however, rose to 1.8 times from 1.66 times a year ago.

The group’s total undrawn borrowing facilities amounted to RM3.22 billion, which primarily comprise project financing term loan facilities of RM2.98 billion and revolving credit facilities of RM224 million. In addition, the group has available room in its perpetual securities programmes of RM1.23 billion.

"With the continued availability of these borrowing facilities and perpetual securities required for the group to support its current level of operations, finance new FPSO projects and expand the renewables and green technologies businesses, the group expects that it has sufficient liquidity to meet its liabilities in the foreseeable future," Yinson said.

The group remains confident in its long-term growth, driven by strong demand for FPSO units and an expanding renewables pipeline. With FPSO Atlanta and FPSO Agogo set to begin their charter periods in 2025, the group anticipates steady, contracted income streams for decades to come while focusing on efficient project delivery.

The FPSO market continues to see strong demand for contractors like Yinson, which have an edge in emissions reduction technologies and a solid track record of on-time delivery and safety and operational performance.

"The demand for FPSOs is positive with the increase in project sanctions around the world particularly from Brazil, being the highest FPSO demand centre, followed by West Africa," it said.

Yinson added that elevated energy prices have also accelerated the transition to renewables, supporting growth in its key markets across Latin America, the Asia-Pacific, and Europe.

At the same time, the group said it is also reviewing its non-FPSO businesses for potential streamlining, as part of its ongoing efforts to focus on the core areas of its business.

Yinson’s share price closed two sen or 0.92% higher at RM2.20, giving the group a market capitalisation of RM6.78 billion. Year to date, the stock has lost over 16%.