KUALA LUMPUR: The floating production storage and offloading (FPSO) Anna Nery project is expected to help Yinson Holdings Bhd (Yinson) deliver strong profit growth in financial year 2024 (FY24), said CGS-CIMB Securities Sdn Bhd (CGS-CIMB).
The brokerage firm said the FPSO Anna Nery — which is already onsite offshore-Brazil — has secured provisional acceptance by the client and should achieve its first oil in January 2023.
“The FPSO Anna Nery should begin to receive charter hire revenues shortly thereafter,“ it said in a research note on Dec 23.
CGS-CIMB said Yinson’s other FPSO projects are also progressing well and the company expects its FPSO Atlanta project to achieve 45-50% completion and the FPSO Maria Quiteria project to hit 37-38% completion by end-January 2023.
Meanwhile, Kenanga Research said following Yinson’s preliminary activities agreement with Azule Energy for the FPSO Agogo project, the official charter contract award is likely to be finalised in the coming weeks.
According to industry sources, the FPSO Agogo contract is expected to be 15 firm years plus five yearly extensions, with the first oil hit expected in late-2025, it said.
“Hence, we estimate total capital expenditure (capex) to be about US$1.5 billion (RM6.65 billion)(assuming 100% stake), with total contract value surpassing the US$5 billion-mark, thus making it one of Yinson’s biggest contracts in its order book,” it said.
In a separate note, RHB Research said it expects the FPSO market to remain robust with more new projects from Petrobras in Brazil.
“Additionally, we have been informed that 270 megawatts (MW) out of the 485MW wind projects in Ceara, Brazil have been approved for construction and Yinson’s management aims to start construction work next year once the power purchase agreement (PPA) is secured.
“Thus, we expect Yinson to see better earnings contribution from its renewables segment once the 285MW solar plant in Nokh Solar Park, India is completed,“ said RHB Research.
At 11.55am, the counter fell three sen to RM2.40 with 1.60 million shares traded. – Bernama