Latest news with #FPSO
The Star
2 days ago
- Business
- The Star
Enhanced earnings visibility likely for Yinson
CIMB Research is maintaining its forecasts for Yinson. PETALING JAYA: Yinson Holdings Bhd is poised to enhance its long-term earnings visibility and deepen its foothold in the offshore energy sector, supported by a recent contract win that further expands its recurring income base and solidifies its regional presence. Analysts said they believe the deal announced earlier this week strengthens the group's position in Vietnam's offshore market, building on a decade of successful project execution and growing demand for cleaner energy infrastructure. In a recent report, CIMB Research said: 'We view this development as a strategic win for Yinson, reinforcing its position as a leading independent offshore asset owner and operator. 'The award brings Yinson's fleet to 11 vessels, including the ongoing conversion of floating production, storage and offloading vessel (FPSO) Agogo, and marks its second floating storage and offloading (FSO) contract in less than a year. This reflects both the urgency of regional energy security and the shift toward cleaner energy solutions,' the research house added. Yinson recently announced it had secured a contract from Phu Quoc Petroleum Operating Co for the charter, operation and maintenance of an FSO vessel for the Block B field off Vietnam via a 49%-owned joint venture with PetroVietnam Technical Services Corp (PTSC). The firm portion of the charter spans 14 years, with an additional nine years of optional extensions, and carries an estimated contract value of US$600mil. First oil is expected by the third quarter of 2027. The collaboration with PTSC marks Yinson's fourth partnership with the Vietnamese firm and further underscores its track record in the country. 'Once operational, Yinson is set to benefit from a steady, recurring income stream from the Block B FSO,' CIMB Research said. With capital expenditure (capex) for the FSO estimated at approximately US$225mil (based on management's guidance of US$200mil to US$250mil), alongside an 85% margin in earnings before interest, taxes, depreciation and amortisation, a 23-year contract term, and Yinson's 49% effective ownership stake in the joint-venture company, the the research house estimated that the project could yield an internal rate of return of 9.3%. While the financial contribution may not be substantial in the near term, the project provides additional upside to Yinson's solid earnings base. 'We project profit from the venture to range from RM6mil to RM22mil over the 23-year contract duration,' it added. Kenanga Research also echoed a positive stance on the development. 'The win is viewed positively and based on an assumed US$200mil capex and a 9.3% discount rate, we estimate a discounted cash flow accretion of one sen per share. The expected earnings contribution is minimal at RM13mil, accounting for about 3% of 2026's estimated profit after tax,' Kenanga Research said. Given Yinson's established track record in Vietnam and the use of a familiar shipyard, previously used for FPSO Lac Da Vang, the research house sees limited execution risk. It assumes the project to be fully internally funded, considering its relatively modest scale and the joint venture's structure. Kenanga Research revised its target price slightly to reflect the new contract, raising its sum-of-parts based target price to RM3.16 from RM3.15 after accounting for the potential discounted cash flow value of the win. It maintained its 'outperform' recommendation on Yinson. CIMB Research, meanwhile, is maintaining its forecasts and target price of RM2.93 for Yinson. 'We reiterate our 'buy' call on the company, underpinned by robust long-term earnings visibility from its substantial US$19.6bil order book, including potential extensions, stretching to 2048,' it said.
Forbes
2 days ago
- Business
- Forbes
Malaysian Tycoon Lim Han Weng's Yinson Wins $600 Million Vietnam Contract
Yinson took delivery of Agogo FPSO, its largest vessel, in February. Yinson Production—controlled by Malaysian tycoon Lim Han Weng's Kuala Lumpur-listed Yinson Holdings—won a $600 million contract to supply a new floating storage and offloading (FSO) vessel to its joint venture company in Vietnam Under the deal, Yinson Production will lease and operate the FSO vessel to PTSC South East Asia, which it jointly owns with PetroVietnam Technical Services Corp., over a 14-year contract period, with an option to extend for another nine years, Kuala Lumpur-based Yinson Production said in a statement. Phu Quoc Petroleum Operating Co., which is developing offshore gas projects in southwest Vietnam, awarded the contract to PTSC South East Asia, Yinson Production said. 'This contract is anticipated to achieve first condensate in the third quarter 2027,' the company said. The vessel can store up to 350,000 barrels of condensate, the liquids formed from gas. The Vietnam contract will bring to 11 the offshore vessel fleet size of Yinson, one of the world's biggest providers of floating production, storage and offloading (FPSO) vessels to the global oil and gas industry with over $19 billion worth of orders until 2048. FPSO vessels extract hydrocarbons from deep-sea wells, sift impurities, store the crude oil and transfer this to tankers to refineries. Yinson Production has recently won new projects in Vietnam. In November, a separate joint venture of Yinson Production and PTSC was awarded the contract for the provision, charter, operation and maintenance of an FSO for Murphy Oil's Lac Da Vang project. This was followed by the announcement in December of an 18-month extension for Yinson Production's FPSO PTSC Lam Son contract to June 2026. Besides Vietnam, the group has deployed FPSO vessels on long-term contracts, ranging from 15 to 25 years, in countries such as Angola, Ghana, Nigeria, Vietnam and Brazil. Yinson Holdings was founded in 1984 by its chairman Lim Han Weng and his wife as a transport and trading business that morphed into a supplier of offshore support vessels to the oil and gas industry a decade later. By 2013, it became a full-pledged operator of FPSOs when it acquired Norway's Fred Olsen Production. With a net worth of $480 million, the Lim family is among the wealthiest in Malaysia.
Yahoo
01-07-2025
- Business
- Yahoo
Hanwha Ocean secures AIP for cybersecurity solution for FPSO units
Hanwha Ocean has secured approval in principle (AIP) from the American Bureau of Shipping (ABS) for its new cybersecurity system for floating production storage and offloading (FPSO) units. This solution aims to protect critical infrastructure and operations, enhancing security for offshore facilities. In collaboration with SIGA Data Security, Hanwha Ocean designed an operational technology (OT) cybersecurity solution specifically to defend vital OT systems against cyber threats, thereby improving the overall cyber resilience of FPSO units. Hanwha Ocean Offshore president Philippe Levy said: 'Receiving this AIP from ABS marks a significant step forward for Hanwha Ocean. It underscores our commitment to innovation and operational resilience in offshore environments. 'Our strategic partnership with ABS and SIGA enables us to offer validated, leading-edge cybersecurity solutions that provide enhanced process-level visibility, real-time threat detection, and effective remote operational oversight, all fully aligned with stringent offshore industry compliance standards and segmentation architectures.' The AIP was granted following ABS's thorough design reviews, ensuring compliance with class and statutory requirements. This cybersecurity initiative is part of a multi-year offshore technology collaboration agreement between ABS and Hanwha Ocean, focusing on innovative projects in sustainability, digitalisation, artificial intelligence, and operational technology cybersecurity. ABS Global Offshore senior vice president Miguel Hernandez said: 'This is an exciting achievement for both organisations. Together, under this agreement, ABS and Hanwha Ocean are using our collective resources and extensive experience to address challenges unique to offshore energy production. 'As connectivity improves for offshore assets, the cyber risks increase. This new OT solution promises to help operators address vulnerabilities in their critical operations systems.' In February this year, Hanwha Power Systems and Hanwha Ocean partnered with Baker Hughes to develop ammonia gas turbines for ships. Announced at the Baker Hughes Annual Meeting in Florence, Italy, the collaboration aims to create low-carbon propulsion systems by 2028. "Hanwha Ocean secures AIP for cybersecurity solution for FPSO units" was originally created and published by Ship Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
New Straits Times
01-07-2025
- Business
- New Straits Times
Yinson unit issues US$1.16bil project bond to refinance FPSO vessel
KUALA LUMPUR: Yinson Holdings Bhd's subsidiary Yinson Production has successfully placed a US$1.168 billion (US$1= RM4.20) project bond to refinance the floating production, storage and offloading (FPSO) vessel Maria Quitéria. Yinson Production is a global energy infrastructure and technology company active in offshore energy. In a statement today, Yinson Production said the notes were issued by its subsidiary Yinson Bergenia Production BV, the owner of the FPSO, which is operating under a 22.5-year lease and operate contract with Petrobras in the Jubarte field, offshore Brazil. "The notes are fully amortising with a final maturity of 19.6 years and were priced at a fixed coupon of 8.498 per cent, payable semi-annually. "The proceeds from the transaction will be used to refinance the existing outstanding debt related to the FPSO, fund reserve accounts as required under the new bond issue (unless funded by letters of credit), pay for transaction related fees and expenses, and for distributions to Yinson Production as shareholder of the issuer," it said. It said that the notes are expected to settle on July 7, 2025 and will subsequently be listed on the London Stock Exchange's International Securities Market. Yinson Production chief financial officer Markus Wenker said it is the largest and longest-dated FPSO project bond ever issued. "With this bond issue, we further strengthen Yinson Production's capital structure and create long-term value, while offering noteholders exposure to a high-quality asset with robust downside protections and an uncapped investment grade structure," he said. Credit rating agencies Moody's and Fitch have assigned the notes credit ratings of Ba1 and BB+ respectively, reflecting the FPSO's strong credit fundamentals and its strategic importance to Petrobras. Citigroup and JP Morgan acted as global coordinators for the offering, while HSBC, ING, Santander and Standard Chartered Bank served as joint bookrunners. -- BERNAMA
The Star
24-06-2025
- Business
- The Star
Trading ideas: Yinson, Willowglen, AirAsia X, Mulpha, Enra, LBS, CAB, Hiap Huat, Cuckoo, Pan Merchant, ASM, Foodie Media, Magni-Tech
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Yinson Holdings Bhd has announced that its FPSO unit, Yinson Bergenia Production BV, is considering the issuance of up to US$1.2bn (RM5.2bn) in bonds. Willowglen MSC Bhd 's wholly-owned subsidiary, Willowglen Services Pte Ltd, has been awarded a contract worth RM15.3mn by SP PowerAssets Ltd, Singapore, for the maintenance of partial discharge systems. AirAsia X Bhd chief executive officer Benyamin Ismail said the aviation group's RM1bn private placement is being finalised and still slated for completion by end-July. Mulpha International Bhd 's indirect wholly-owned subsidiary, Mulpha Marymount Pty Ltd has accepted a cash advance facility of A$73.8mn or approximately RM203.8mn from National Australia Bank Ltd. Enra Group Bhd , through subsidiary Hexagon Energy Logistics Sdn Bhd, has signed a US$32.1mn deal with SIP JDA Sdn Bhd to provide a storage tanker for Carigali-PTTEPI's oil and gas operations at the Malaysia-Thailand Joint Development Area. LBS Bina Group Bhd has launched Centrum Iris, the second phase of its Cameron Centrum township, marking it as the largest mixed commercial development in Cameron Highlands with a gross development value of RM472mn. CAB Cakaran Corp Bhd has revealed that the recent cyber attack on 51%-owned Farm's Best Food Industries Sdn Bhd, has not resulted in any material impact on the latter's operations or financial performance. Hiap Huat Holdings Bhd is buying a 20,000-square-metre industrial land and assets located in Kemaman, Terengganu for RM9.5mn. HSS Engineers Bhd via its wholly-owned subsidiary HSS Engineering Sdn Bhd has been hired for building information modelling and engineering design consultancy services by M/s Ocean Lifespaces India Pvt Ltd. Cuckoo International (MAL) Bhd announced a strategic collaboration with Samsung Malaysia Electronics (SME) Sdn Bhd to launch a new generation of smart home solutions in Malaysia. Solid-liquid filtration solutions provider Pan Merchant Bhd will proceed with its initial public offering and ACE Market debut on June 26, 2025, following cautious market reception and moderate subscription levels. ASM Automation Group Bhd, which is slated for listing on the ACE Market of Bursa Malaysia on July 2, said the 26.7mn new shares it offered to the public under its IPO have been oversubscribed by 1.3 times. Digital media publishing company Foodie Media Bhd, which operates the KL Foodie social media brands, is planning to raise funds through an initial public offering on the ACE Market of Bursa Malaysia to support workforce expansion and the purchase of a live streaming building. Magni-Tech Industries Bhd 's net profit for the 4QFY2025 fell 18.1% to RM28.3mn from RM34.5mn a year earlier, mainly due to lower revenue from both the garment and packaging segments.
