Latest news with #AgogoFPSO
The Star
12 hours ago
- Business
- The Star
Trading ideas: Yinson, Iris, MR DIY, ES Sunlogy, Avangaad, Magma, PetChem, VSTECS, Master-Pack, RCE Capital, Eonmetall
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Yinson Holdings Bhd has commenced operations of its largest FPSO, Agogo FPSO, under a 15-year charter worth over US$5bn. Iris Corporation Bhd failed in its appeal against a High Court decision to dismiss its lawsuit against nine former directors over losses from subscribing shares in a UK-based firm. Tenaga Nasional Bhd will maintain its regulated profit margin at 7.3% during the RP4 from 2025 to 2027 and any profits above this rate will be returned to consumers via the Electricity Industry Fund. MR DIY Group (M) Bhd saw its 2QFY2025 net profit rise 2.2% YoY to RM158.6mn from RM155.2mn, as higher revenue and margin gains offset increased administrative and operating expenses. ES Sunlogy Bhd said its joint development of a 155MWp large-scale solar photovoltaic power plant in Long Lama, Baram, Sarawak, will cost RM488.2mn and the project will be funded 80% via bank borrowings and 20% from internal funds. Avangaad Bhd, formerly EA Technique (M) Bhd, is disposing of its FSO vessel FOIS Nautica Tembikai for US$10.5mn cash. Magma Group Bhd has completed its RM379.2mn capital reduction exercise to strengthen its balance sheet and enhance financial flexibility for expansion. Petronas Chemicals Group Bhd posted a RM1.08bn net loss in 2QFY2025 versus a RM777mn net profit a year earlier, weighed by lower sales volumes, weaker product prices, asset impairments and unrealised forex losses. Vstecs Bhd 's 2QFY25 net profit jump to RM20.2mn from RM15.3mn a year ago, driven by higher sales across its ICT distribution, enterprise systems, and ICT services segments. Master-Pack Bhd posted a 74% YoY drop in 2QFY25 net profit to RM1.6mn from RM6.2mn, due to margin compression from price cuts and a RM130,000 forex loss. RCE Capital Bhd 's 1QFY26 net profit of RM26.0mn was down 14.3% YoY from RM30.3mn, weighed by higher impairment allowances on receivables. Eonmetall Group Bhd registered a RM4.1mn net loss in 2QFY2025, reversing from a RM702,000 net profit a year earlier, on lower margins, higher raw material usage, and increased factory overheads.
The Star
16 hours ago
- Business
- The Star
Yinson's Agogo FPSO vessel starts work
The company said the total contract value is in excess of US$5bil. PETALING JAYA: Yinson Production has announced that the 15-year firm charter for the Agogo floating production storage and offloading (FPSO) vessel has officially commenced, following the issuance of the Provisional Operational Readiness Certificate (PORC) on Aug 12. The company, an independent owner and operator of FPSO vessels worldwide, said the Agogo FPSO had earlier achieved first oil on July 29, 2025 – four months ahead of the original schedule and 29 months after the contract award. 'The PORC marks the beginning of the FPSO's 15-year firm lease and operate contract with client Azule Energy, Angola's largest independent oil and gas producer and a 50/50 joint venture between British Petroleum and Italy's Eni. 'The contract has a firm period of 15 years, with optional annual extensions of up to five years. The total contract value is in excess of US$5bil.' Yinson Production said it had entered into the contract for the provision, operation, and maintenance of the Agogo FPSO with Azule Energy in February 2023. 'With a production capacity of 120,000 barrels of oil per day and a storage capacity of 1,600,000 barrels of oil, the Agogo FPSO is deployed to the Agogo Integrated West Hub Development Project located in the West Hub of Block 15/06 offshore Angola. 'Following completion of the construction, integration, mechanical completion and commissioning, the Agogo FPSO sailed away from Shanghai, China, in March 2025, arrived in Angola in May 2025 and completed mooring hook-up in June 2025.'
New Straits Times
a day ago
- Business
- New Straits Times
Yinson production begins 15-year charter for Agogo FPSO in Angola
KUALA LUMPUR: Yinson Holdings Bhd's offshore energy solutions and floating, production, storage, and offloading (FPSO) business unit, Yinson Production, has commenced the 15-year firm charter for the Agogo FPSO, following the issuance of the Provisional Operational Readiness Certificate (PORC) on Aug 12, 2025. Yinson Production said the Agogo FPSO had earlier achieved first oil on Aug 29, 2025 - four months ahead of the original schedule and 29 months after the contract award. "The PORC marks the beginning of the FPSO's 15-year firm lease and operate contract with client Azule Energy, Angola's largest independent oil and gas producer and a 50:50 joint venture between BP and Eni," it said in a filing with Bursa Malaysia. The contract has a firm period of 15 years, with optional annual extensions of up to five years. The total contract value is in excess of US$5 billion (US$1=RM4.20). Yinson Production entered into the contract for the provision, operation and maintenance of the Agogo FPSO with Azule Energy in February 2023. With a production capacity of 120,000 barrels of oil per day and a storage capacity of 1.6 million barrels, the FPSO is deployed at the Agogo Integrated West Hub Development Project in the West Hub of Block 15/06 offshore Angola. Following completion of the construction, integration, mechanical completion, and commissioning, the Agogo FPSO sailed away from Shanghai, China in March 2025, arrived in Angola in May 2025 and completed mooring hook up in June 2025. It features a comprehensive suite of emissions-reducing technologies including closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls, and all-electric drives. It is also the world's first operating FPSO with carbon capture technology. With the Agogo FPSO having received PORC, 97 per cent of Yinson Production's total contracted revenue backlog of about US$19 billion now stems from fully operational assets. The successful completion of the project also frees the project's engineering, procurement and construction (EPC) team to execute new projects. Yinson Production chief executive officer (CEO) Flemming Guiducci Grønnegaard said achieving first oil four months ahead of schedule underscores the company's capability to deliver complex projects on or ahead of time, meeting the highest standards. "This success once again highlights Yinson Production's excellence in project execution, providing our clients with certainty and creating long-term value. "As our first asset in Angola, the Agogo FPSO marks an important step in expanding our footprint in Africa and will positively contribute to Angola's economic growth," he said. Azule Energy CEO Adriano Mongini said the vessel's low-carbon footprint and pioneering carbon capture technology demonstrate a commitment to efficient and sustainable operations. "The issuance of the PORC is a key milestone, and we are confident in Yinson's ability to operate and maintain this asset with excellence," said Mongini. Meanwhile, Agogo FPSO project director Per Dyberg said the ahead-of-schedule delivery reflected the outstanding collaboration between Yinson Production and Azule Energy. "As we hand over to our operations colleagues, I am confident the Agogo FPSO will continue to perform to the highest standards for many years to come," he said.
The Star
a day ago
- Business
- The Star
Yinson Production begins 15-year charter for Agogo FPSO after early first oil in Angola
Agogo FPSO successfully moored and hooked up at the West Hub, Block 15/06, Offshore Angola PETALING JAYA: Yinson Production has announced that the 15-year firm charter for the Agogo floating production storage and offloading (FPSO) vessel has officially commenced, following the issuance of the Provisional Operational Readiness Certificate (PORC) on Aug 12. The company, an independent owner and operator of FPSO vessels worldwide, said the Agogo FPSO had earlier achieved first oil on July 29, 2025 — four months ahead of original schedule and 29 months after contract award. 'The PORC marks the beginning of the FPSO's 15-year firm lease and operate contract with client Azule Energy, Angola's largest independent oil and gas producer and a 50/50 joint venture between BP and Eni. 'The contract has a firm period of 15 years, with optional annual extensions of up to five years. The total contract value is in excess of US$5bil.' Yinson Production said it had entered into the contract for the provision, operation, and maintenance of the Agogo FPSO with Azule Energy in February 2023. 'With a production capacity of 120,000 barrels of oil per day and a storage capacity of 1,600,000 barrels of oil, the Agogo FPSO is deployed to the Agogo Integrated West Hub Development Project located in the West Hub of Block 15/06 offshore Angola. 'Following completion of the construction, integration, mechanical completion and commissioning, the Agogo FPSO sailed away from Shanghai, China in March 2025, arrived in Angola in May 2025 and completed mooring hook up in June 2025.' Yinson Production said the Agogo FPSO features a comprehensive suite of emissions-reducing technologies including closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls, and all-electric drives. It is also the world's first operating FPSO with carbon capture technology. With the Agogo FPSO having received PORC, approximately 97% of Yinson Producfion's total contracted revenue backlog of approximately US$19bil now stems from assets that are fully operational. 'In addition, the successful completion of this major project also frees the project's engineering, procurement, and construction team to pursue and execute new projects.' Commenting on this significant milestone, Yinson Production chief executive officer Flemming Guiducci Gronnegaard stated: 'Achieving first oil for the Agogo FPSO approximately four months ahead of schedule and 29 months after contract award is a truly remarkable milestone. 'This success once again highlights Yinson Production's excellence in delivering complex projects on or even ahead of time and to the highest standards — providing our clients with certainty and creating long-term value.' As our first asset in Angola, Gronnegaard said the Agogo FPSO also marks an important expansion of our footprint in Africa and will positively contribute to Angola's economic growth. 'We are deeply grateful to our client, Azule Energy, and all our partners for their strong collaboration and unwavering commitment throughout this project.'
Forbes
20-04-2025
- Business
- Forbes
Malaysian Tycoon And Son Win Multibillion Dollar Energy Contracts To Make Offshore Vessel Supplier Yinson A Global Giant
This story is part of Forbes' coverage of Malaysia's Richest 2025. See the full list here. After participating in the APEC Summit in Peru's capital city last November, Malaysia's Prime Minister Anwar Ibrahim made a brief stopover in Rio de Janeiro, where he attended a reception hosted by Malaysian businessman Lim Han Weng and his son Lim Chern Yuan. The glad-handing event was to celebrate the opening of the new Brazilian office of Yinson Production, a unit of Lim's Bursa Malaysia-listed Yinson Holdings. Anwar waxed eloquent about the company, calling it an example of his country's 'commitment to supporting global energy needs with innovation and responsibility.' ss Over the past decade or so, Kuala Lumpur-based Yinson (market cap: $1.1 billion) has emerged as one of the world's biggest providers of what's referred to as floating production, storage and offloading (FPSO) vessels for the global oil and gas industry. These FPSO vessels, costing upward of $1 billion apiece, are used to extract hydrocarbons from deep-sea wells, clean out impurities, store the crude oil and eventually transfer the black gold to tankers for transport to refineries. Yinson has nine of these heavyweight vessels in its fleet, deployed on long-term contracts, ranging from 15 to 25 years, in countries as far-flung as Angola, Ghana, Nigeria and Vietnam, in addition to Brazil. The company has gained traction in the Latin American country, the world's biggest FPSO market, since entering there in 2018. With two vessels on contract with state-run oil firm Petrobras and one with privately held energy firm Enauta, Brazil now accounts for the biggest chunk—about 40%—of its annual revenue of 7.6 billion ringgit ($1.7 billion) in the fiscal year ended January 2025. 'We have to be global,' says Lim, Yinson's group executive chairman. 'We cannot just depend on Malaysia.' Yinson's ranking in the global FPSO industry is linked to the size of its order book; it has $21 billion worth of leasing contracts extending until 2048. That makes the company the world's second-largest, behind Dutch company SBM Offshore with $35 billion. Yinson took delivery of Agogo FPSO, its largest vessel, in February. In February, the father and son were in Shanghai to attend the naming and sailing ceremony of their biggest vessel yet: the $2 billion Agogo FPSO, so named after the offshore oilfield in Angola, where it's now on its way to be deployed. Built by a Chinese shipyard, the Agogo is on a 15-year charter to Angola's Azule Energy, a joint venture between BP and Italy's Eni. With the capacity to process 120,000 barrels of oil per day, it's expected to generate revenue of $5.3 billion for Yinson over the leasing period. The company claims that this is the first such vessel in its fleet to use green technologies that could reduce carbon emissions by 27% over the contract period, as compared with older vessels. 'The energy transition is going to happen. So we're playing both sides of the equation.' The Lims have built Yinson into a well-oiled money machine. With its FPSO contracts, under which operations continue whatever the price of oil, Yinson Holdings remained profitable even when Covid-19 battered the world. Chern Yuan, the company's 40-year-old group CEO, is undaunted by rising macroeconomic headwinds brought on by President Donald Trump's tariff war. 'We will continue to bid for projects,' he says, adding that a long-term view is embedded in their business model. 'The average lifecycle of our contracts outlasts the terms of most heads of states,' he notes. Source: Yinson Holdings Marquee international investors have bought into the Yinson story. In January, Yinson Production raised $1 billion from the sale of redeemable convertible preferred shares and warrants to a consortium that included Abu Dhabi Investment Authority, British Columbia Investment Management and Singapore-based private equity firm RRJ Capital. The funds will be used to bankroll the expansion of the flagship FPSO business as well as a growing green energy portfolio under Yinson Renewables, a subsidiary that has solar and wind power projects in multiple countries. The FPSO Atlanta is one of three vessels deployed in Brazil, Yinson's biggest market. 'Renewables are already the fastest growing part of the global energy mix and the energy transition is going to happen,' says the younger Lim. 'So we're playing both sides of the equation.' With the proliferation of electric vehicles and data centers, global demand for electricity is expected to rise 17% to 35,000 terawatt hours by 2027, from 30,000 in 2022, according to the International Energy Agency in a February report. Renewables will account for 35% of the energy mix by 2027, while coal, gas and oil will account for the rest, it said. Yinson got into renewables in 2020 and has built up a portfolio of over 550 megawatts with projects across Asia-Pacific, Europe and Latin America. While renewables accounted for just 2% of revenue in 2024 and the business is still loss-making, Chern Yuan is confident that it will deliver 'exponential growth' by 2030, when he's targeting Yinson to become carbon neutral. The older Lim, who features at No. 41 among Malaysia's 50 richest with a fortune of $480 million, is a self-made tycoon, who got his start as a car salesman after high school in Penang. In 1984, he set up a small transport and logistics company in Johor Bahru with his wife, Bah Lim Kian, who continues to be actively involved as an executive director in charge of group strategy. He named it Yinson after his mother Yin, which translates to 'cloud rising' in Chinese to denote his ambitions for his venture. The Lims pose with a scale model of Agogo FPSO. Adecade later, he got into marine logistics supplying offshore support vessels to the oil and gas industry, starting with Africa, and listed Yinson in 1996. Once Chern Yuan came on board in 2005, after studying accountancy and finance at the University of Melbourne, the company moved up the value chain. In 2011, Yinson joined a consortium led by Petrovietnam, which was awarded a contract for a floating, storage, offloading (FSO) vessel. The next logical step was to expand into providing clients the more complex services of FPSO vessels. 'We knew if we were really serious about [growing] the business, we had to acquire some good engineering skill sets,' recalls Chern Yuan. That opportunity arose in 2013 when Norway's Fred. Olsen Production was put up for sale. Yinson acquired its bigger Norwegian rival for $170 million, a price that exceeded its $120 million market cap at the time. 'We were punching above our weight,' acknowledges Chern Yuan. But the debt-funded acquisition made Yinson a full-fledged FPSO operator. The recent capital injection at Yinson Production resulted in an anomaly, valuing the unit at $3.7 billion, more than three times the market cap of its parent. The valuation gap, says Ahmad Maghfur Usman, an analyst at Japanese brokerage Nomura in Kuala Lumpur, is due to concerns over Yinson Holdings' rising debt. Since 2020, this has risen fourfold to 16 billion ringgit, increasing the company's gearing ratio to about 1.9 times. 'I'm seeing more and more opportunities… I have to work until the last day.' Chern Yuan attributes this to the four new vessels the company ordered in the past three years for more than $4 billion, which he says will generate enough cash flow to cover the debt obligations. Meanwhile, Yinson's shares have fallen 23% in the past year, partly due to the post-tariff market meltdown. Nomura's Maghfur Usman says the stock is undervalued and has a 'buy' rating on the shares, predicting an 87% upside over 12 months. The CEO says the company is looking to boost shareholder returns by increasing dividends and stepping up share buybacks as well as potentially spinning off Yinson Production and listing it outside Asia. 'Hopefully, these initiatives will help narrow the valuation gap,' he says. Yinson Holdings hit a speed bump in the year ended January with net profit slumping 22% to 752 million ringgit on a 35% decline in revenue. This was due to higher finance charges linked to increased debt and a decline in engineering revenues. 'We should be seeing better results after Agogo starts production,' says Chern Yuan. Agogo is expected to reach Angola in mid-May and start production by September. At age 73, the patriarch still has plenty on his plate. He continues to run privately held Liannex, a company he started in 1993 to haul industrial commodities such as scrap iron, bauxite, coal and nickel to customers across Southeast Asia. 'I still deal with the coal mines in Indonesia because my children don't speak the language,' he says. HI Mobility is the operator of the Causeway Link buses that ferry passengers across the Malaysia-Singapore border. Last year, Lim scaled up Liannex with the acquisition of a controlling interest in Icon Offshore, a supplier of offshore support vessels, for 173 million ringgit, and placed its marine transport operations under the renamed Lianson Fleet Group. Lim's youngest son, 38-year-old Chern Wooi, is executive chairman of the company, which manages a fleet of bulk cargo carriers, floating cranes, barges and floating hotels. Lim also has a controlling interest in HI Mobility, a bus company that operates the Causeway Link, which shuttles passengers across the causeway connecting Malaysia and Singapore, considered among the world's busiest borders with more than 300,000 passengers passing through the immigration checkpoints every day. The company, which has a fleet of 550 buses, raised 116 million ringgit from an IPO in March and plans to use the funds to expand the bus fleet. Source: Yinson Holdings With a two-decade track record, HI Mobility expects to benefit from the Johor-Singapore special economic zone being jointly developed in the southern Malaysia state. 'The overarching more business-friendly policies under the special economic zone will create new and additional travel demand,' says HI Mobility CEO Lim Chern Chuen, 44, who is Lim's eldest son. The company's revenue rose 73% to 208 million ringgit in 2024 from the previous year, with nearly half coming from Singapore. The Lims remain focused on their crown jewel, the FPSO vessel operations. As per market research consultancy Energy Maritime Associates, orders for FPSO vessels could exceed $88 billion over the next five years. Chern Yuan says that he plans to bid for three mega-FPSO projects worth at least $1.5 billion each in that period. He doesn't disclose details, but Maybank Investment Bank analyst Jeremie Yap says they are probably in Ghana, Ivory Coast and Malaysia. Yap wrote in a March research note that given its track record, 'Yinson is well positioned to win future projects and could be a preferred choice for the bids.' With his three sons well-entrenched in the family trade, the patriarch could afford to take it easy but acknowledges he's not inclined to yet. 'I'm seeing more and more opportunities,' says Lim. 'I have to work until the last day.' ____________________________________________________ Correction: April 20, 2025 An earlier version said Yinson is the third-largest in the global FPSO industry by order book size. It is the second-largest, using the latest publicly available industry data.
