Latest news with #FSO
The Star
5 hours 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.
Yahoo
13 hours ago
- Business
- Yahoo
Vietnam Block B gas project advances with FSO contract
PTSC South East Asia (PTSC SEA), a joint venture (JV) between PetroVietnam Technical Services Corporation (PTSC) and Yinson Production, has signed a lease and operate contract for a new floating storage and offloading (FSO) unit, set to bolster the Vietnam Block B gas project offshore. The contract, awarded by the Phu Quoc Petroleum Operating Company (PQPOC), is seen as a critical step for Vietnam's energy sector, enhancing the country's infrastructure. PQPOC, established by Vietnam National Industry – Energy Group (Petrovietnam), is responsible for the operation of the Vietnam Block B gas project, which includes Blocks B&48/95 and 52/97 in the south-west offshore region of Vietnam. The project, with an annual supply of 5.07 billion standard cubic metres of gas, aims to meet the growing energy needs of the south-west part of the country and provide economic benefits to the government, Petrovietnam and investors. Integral to the project's infrastructure, the new FSO will have a storage capacity of up to 350,000 barrels of condensate and is designed to be stationed for 25 years without the need for dry-docking. The turret-moored, double-hull FSO will be installed at a water depth of 80m. The firm period of the contract spans 14 years, with a potential extension of nine more years, bringing the total value to approximately $600m (VND15.72trn). The Vietnam Block B gas project's FSO is expected to achieve first condensate by the third quarter of 2027. Yinson CEO Flemming Guiducci Grønnegaard said: 'This contract reflects our strong partnership with PTSC and our long-standing commitment to Vietnam's offshore energy sector. 'The Block B FSO builds on our successful track record in the region and highlights our ability to deliver high-quality offshore assets that meet the specific needs of our clients. We are proud to support Vietnam's efforts to enhance energy security and are confident that this project will deliver long-term value for all stakeholders.' This new deal follows a previous award in November last year to PTSC AP, another JV between Yinson Production and PTSC, for the provision, charter, operation and maintenance of an FSO for Murphy Oil's Lac Da Vang project. Earlier this year, Yinson Production Offshore Holdings, a newly formed UK-based holding company of Yinson Production, signed a definitive agreement with a group of international investment firms. This agreement involves the issuance of $1bn ($749.89bn) in redeemable convertible preferred shares, along with 10% warrants, based on a post-money valuation of $3.7bn. "Vietnam Block B gas project advances with FSO contract" was originally created and published by Offshore 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Borneo Post
20 hours ago
- Business
- Borneo Post
Yinson, PTSC advance Vietnam's offshore gas ambitions with Block B FSO Project
Signing the contract are (from left) Yinson Holdings Bhd group chief financial & strategy officer Chai Jia Jun, Petrovietnam PQPOC deputy general director Nguyen Thanh Dung, and PTSC general manager of technical and operation Nguyen Tuan Hung, witnessed by (back row) PTSC chief executive officer Tran Ho Bac and Yinson Holdings Bhd group chief executive officer Lim Chern Yuan. SINGAPORE (July 29): Yinson Production, through its joint venture company PTSC South East Asia Pte Ltd (PTSC SEA), announced the signing of a lease and operate contract for the provision of a newbuild floating storage and offloading (FSO) unit to serve the Block B gas field, offshore Vietnam. The contract, awarded by Phu Quoc Petroleum Operating Company (PQPOC) marks a significant milestone in the development of Vietnam's energy infrastructure and demonstrates Yinson Production's ongoing commitment to delivering reliable and efficient offshore solutions across the region. This new FSO brings Yinson Production's fleet size to 11. PQPOC was established and nominated by the Vietnam National Industry – Energy 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 in Blocks B&48/95 and 52/97. 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. The FSO contract is estimated to have a firm period duration of 14 years, with the option for a potential extension of up to nine additional years. The total contract value, including the potential extension period, is estimated be in the region of US$600 million. The FSO will be a newbuild, double-hull, turret-moored unit installed in water depth of 80m. The FSO is designed to be stationed for 25 years without drydocking and is capable of storing up to 350,000 barrels of condensate. According to its chief executive officer Flemming Guiducci Grønnegaard, 'This contract reflects our strong partnership with PTSC and our long-standing commitment to Vietnam's offshore energy sector. 'The Block B FSO builds on our successful track record in the region and highlights our ability to deliver high-quality offshore assets that meet the specific needs of our clients. We are proud to support Vietnam's efforts to enhance energy security and are confident that this project will deliver long-term value for all stakeholders.' This new contract comes after the awarding in November last year of a contract to PTSC AP for the provision, charter, operation and maintenance of an FSO for Murphy Oil's Lac Da Vang project. PTSC AP is also a joint venture between Yinson Production and PTSC. In December last year, Yinson Production also announced the extension of the charter contract for FPSO PTSC Lam Son for 18 months until 30 June 2026. This contract is anticipated to achieve first condensate by the third quarter of 2027. corporate news oil and gas Yinson Production
BusinessToday
a day ago
- 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
Forbes
a day 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.
