KUALA LUMPUR (April 2): Yinson Holdings Bhd’s (KL:YINSON) slipped on Wednesday after the oil and gas services firm announced weaker than expected results, while analysts tamper their optimism for the stock’s upside.

Core net profit only accounts for less than 20% of consensus forecast for the financial year ended January 2025 (FY2025), prompting a slew of cuts to target prices. Still, analysts are unanimously bullish on the stock.

Earnings could rebound in FY2026 and more than double in FY2027 with delivery of three new vessels and as the company puts behind it cost overruns at its engineering, procurement, construction, installation and commissioning (EPCIC) business, CIMB Securities said.

Yinson slipped more than 2% to RM2.15 on Wednesday, bringing the decline so far this year to over 17% amid concerns over declining revenue and profit at the EPCIC business, as the company delivered two key floating storage, production and offloading (FPSO) vessels.

All 10 research firms covering Yinson have maintained the stock’s "buy" rating. The average 12-month target price, however, has fallen to RM3.41 from RM3.62 last week, according to Bloomberg.

Yinson is targeting one or two mid-sized FPSO projects within the next 12 months, with projected capital expenditure of up to US$2 billion, focusing on opportunities in the Africa and Asia, according to CIMB Securities.

Key projects include the Baleine and Paon projects in Ivory Coast, Malaysia's Kikeh project, and the Petroleum Exploration License 83 project in Namibia’s Orange Basin, the house said.

For Maybank Investment Bank, 4QFY2025 is a “kitchen sinking” quarter, with the FPSO market currently in the “Golden Age” with an expected 13 awards over the next 12 months.

Prospects for Yinson are “robust” and “we expect Yinson to benefit from FPSO bids in FY2026,” the house said. “We believe that Yinson will be able to comfortably raise” its dividend per share payout, paying six sen in FY2026 and eight sen in FY2027, it added.

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