Yinson Holdings Berhad (YINSON) Q2 2025 earnings summary

Executive summary

• Two FPSOs are on track for delivery in FYE 2025, supporting a transition from EPC to operations and boosting steady, contracted income.

• Revenue for the six months ended 31 July 2024 was RM4,356 million, down 29% year-over-year, mainly due to lower EPCIC activity and absence of prior year one-off items.

• Profit after tax increased 9% year-over-year to RM512 million, driven by FPSO Anna Nery's operations, partially offset by higher finance costs.

• Net profit attributable to owners was RM406 million, a 7.3% decrease year-over-year.

• Optimisation of capital structure is ongoing to unlock value and increase NPVs, with higher free cash flow expected to enhance shareholder returns.

Financial highlights

• Group revenue for H1 FY2025 was RM4,356 million, down 29% year-over-year, mainly due to lower EPCIC activity; Q2 FY2025 revenue was RM2,142 million, down 3% sequentially.

• EBITDA for H1 FY2025 rose 103% year-over-year to RM461 million, driven by FPSO Anna Nery's operations; Q2 FY2025 EBITDA was RM438 million, up 7% sequentially.

• Core PATAMI for H1 FY2025 was RM404 million, up 6% year-over-year; Q2 FY2025 Core PATAMI was RM406 million, up 20% sequentially.

• Finance costs increased to RM817 million from RM403 million, reflecting higher borrowings for project execution.

• Basic EPS for the six months was 11.2 sen, down from 12.8 sen year-over-year.

Outlook and guidance

• Two FPSOs (Maria Quitéria and Atlanta) are set to achieve first oil in Q4 FY2025, supporting future revenue growth.

• FPSO Atlanta, Maria Quitéria, and Agogo are expected to commence charters over the next 1-2 years, transitioning to stable, contracted income.

• Strong contract backlog of USD 21.9 billion until 2048 underpins long-term revenue visibility.

• Renewables segment expects annual generation to exceed 1 TWh, with forecasted revenue of USD 1 billion until 2054.

• The group expects satisfactory results for FY2025, supported by long-term contracts and prudent risk management.