Yinson's Q1 earnings drop 43pct to RM115mil, revenue down to RM1.23bil
This was primarily due to the reclassification of FPSO Anna Nery as a joint venture following its disposal and higher administrative expenses.
Its revenue dropped 44 per cent to RM1.23 billion from RM2.21 billion in the same quarter last year, mainly due to reduced contributions from engineering, procurement, construction, installation and commissioning (EPCIC) activities.
The performance was also due to FPSO Maria Quitéria and FPSO Atlanta having already achieved first oil on Oct 15 and Dec 31, 2024 respectively, while the Agogo FPSO remains in its final construction phase.
Yinson said the ongoing progress of its projects under construction remains on track and aligned with the group's expectations.
The company declared an interim single-tier dividend of 2.0 sen per share for the financial year 2026, amounting to approximately RM56 million, with the entitlement and payment dates set for Sept 4 and Sept 26 respectively.
In a filing with Bursa Malaysia, Yinson said demand in the FPSO market remains strong, particularly for contractors like itself that offer emissions reduction technologies and have a proven track record in timely delivery, safety, and operational excellence.
"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.
In the face of various macroeconomic challenges such as geopolitical tensions, inflation, and tighter financial conditions, Yinson added that it will continue to implement prudent strategies to manage inflation and interest rate risks.
"As part of our ongoing efforts to focus on the core areas of our business, we will also strategically and continuously review our non-FPSO businesses for streamlining opportunities," it said.
Yinson expressed confidence in the outlook for its core businesses, stating that its investments in building a strong sustainability foundation will position the company well to navigate ongoing uncertainties.
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