New Vietnam Deal Minimal Impact On Yinson's Bottom Line
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
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