Latest news with #BlockB
BusinessToday
29-07-2025
- Business
- BusinessToday
New Vietnam Deal Minimal Impact On Yinson's Bottom Line
CIMB Investment Bank Bhd (CIMB Securities) has reiterated a BUY call on Yinson Holdings Bhd with an unchanged target price of RM2.93, citing the group's latest contract win in Vietnam as a strategic boost to its long-term earnings visibility. The counter last traded at RM2.39. 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
Barnama
29-07-2025
- Business
- Barnama
Kenanga, CIMB Maintain ‘Buy' On Yinson After US$600 Mln Vietnam Contract
BUSINESS KUALA LUMPUR, July 29 (Bernama) -- Kenanga Investment Bank Bhd and CIMB Securities Sdn Bhd have reiterated their 'Buy' calls on Yinson Holdings Bhd after it secured a contract worth around US$600 million to provide and charter a floating storage and offloading (FSO) vessel in Vietnam. (US$1=RM4.21). Yinson, via its joint venture PTSC South East Asia Pte Ltd, was awarded the contract by Vietnam's Phu Quoc Petroleum Operating Company for the offshore Block B field in southwest Vietnam. In a filing with Bursa Malaysia yesterday, Yinson said the contract involves the provision, charter, operation and maintenance of the FSO vessel for an initial term of 14 years, with an option for a further extension of up to nine years. 'The total contract value, including the possible extension, is estimated at around US$600 million. 'The FSO vessel will support gas production in the area, which aims to supply 5,073.5 million standard cubic metres of gas per year to customers in the Ca Mau and O Mon power complexes,' it said. Kenanga said it views the contract positively. Based on an assumed US$200 million capital expenditure and a 9.3 per cent discount rate, it estimates a discounted cash flow accretion of one sen per share. 'The expected earnings contribution is minimal at RM13 million, or around three per cent of our forecast profit after tax for the financial year ending 2026. 'Given Yinson's established track record in Vietnam and the use of a familiar shipyard, previously used for FPSO Lam Son, we see limited execution risk. We also assume the project will be fully internally funded, given its modest scale and the JV structure,' it said in a note today. The investment bank maintained its 'Buy' call with an upgraded target price (TP) of RM3.16 per share.
The Star
29-07-2025
- Business
- The Star
Yinson Holdings bags Vietnam FPSO charter contract
PETALING JAYA: Yinson Holdings Bhd 's joint venture PTSC South East Asia Pte Ltd (PTSC SEA) has secured a long-term charter contract worth an estimated US$600mil (RM2.54bil) to provide, operate and maintain a floating production, storage and offloading (FPSO) vessel for the Block B gas field development offshore Vietnam. In a Bursa Malaysia filing, Yinson said PTSC SEA – its 49:51 joint venture with PetroVietnam Technical Services Corp – signed a 14-year firm charter, with an option to extend for up to nine more years, with Phu Quoc Petroleum Operating Company (PQPOC) yesterday. 'The total contract value, including the possible extension period, is estimated to be in the region of US$600mil,' it noted. Yinson said PQPOC was established and nominated by Vietnam's state oil and gas group, Petrovietnam, to undertake its rights and obligations as the operator of Blocks B&48/95 and 52/97, and the area of joint development within those blocks. These are collectively referred to as the Vietnam Block B gas project, the company added. Trading ideas: Yinson, Zetrix AI, Ekovest, Insas, BFood, Ireaka, TechStore, Smile-Link, KAB, FSMB, MMC Port, Eco-Shop, Alpha IVF
New Straits Times
28-07-2025
- Business
- New Straits Times
Yinson's JV firm wins US$600mil contract in Vietnam
KUALA LUMPUR: Yinson Holdings Bhd, via its joint venture PTSC South East Asia Pte Ltd (PTSC SEA), has secured a long-term contract valued at up to US$600 million (RM2.53 billion). This is for the charter, operation and maintenance of a floating storage and offloading (FSO) vessel for the Block B field offshore Vietnam. The contract was signed on July 28 with Phu Quoc Petroleum Operating Company (PQPOC), which is the operator of Vietnam's Block B&48/95 and 52/97 fields under the Vietnam Block B gas project. "The contract is estimated to have a duration of 14 years, with an option for a potential extension of up to nine years," Yinson said in a Bursa Malaysia filing. PTSC SEA is a 49:51 joint venture between Yinson Production Capital Pte Ltd, a wholly-owned subsidiary of Yinson, and PetroVietnam Technical Services Corporation. The Block B gas project, located 250km to 400km southwest of Vietnam's Ca Mau province and O Mon power complex, aims to supply over five billion standard cubic metres of gas annually to key energy demand zones in the region. "The project is expected to help meet rising energy demand in Vietnam's southwest region while generating economic benefits for the Vietnamese government, Petrovietnam and investors," Yinson said. Yinson noted that while risks such as schedule slippage and cost overruns are inherent during the construction phase, they are expected to be mitigated by the group's expertise and internal controls.
The Star
28-07-2025
- Business
- The Star
Yinson JV to charter FSO vessel to Vietnam's Phu Quoc Petroleum
KUALA LUMPUR: Yinson Holdings Bhd 's joint venture with PetroVietnam Technical Services Corp has inked a contract with Phu Quoc Petroleum Operating Company for the charter of a floating storage and offloading vessel for the Block B field, offshore Vietnam. PTSC South East Asia Pte Ltd, is a 49:51 joint venture between Yinson Production Capital Pte Ltd - an indirect wholly-owned subsidiary of Yinson - and PetroVietnam Technical Services Corporation. In a filing with Bursa Malaysia, Yinson said the contract is estimated to have a duration of 14 years with the option to extend for up to nine years. Including the possible extension period, the contract could have a value of about US$600mil. Blocks B&48/95 and 52/97 are located southwest offshore Vietnam with a sea water depth of 77-80m, about 250km and 400km respectively to the Ca Mau Province and the O Mon Power Complex. The framework for the project development is to supply gas (5,073.5 MMscm per year) to the targeted customers in three areas of the southwest region of Vietnam, which contributes to fulfilling the rising energy demand in the southwest area and provides economic gains for the government of Vietnam, Petrovietnam and the investors.
