Yinson’s FY2026 net profit plunges 45%

 Oil and gas services provider’s full-year net profit tumbles to RM683 million from RM1.25 billion a year ago.

Yinson Holdings Bhd is one of the world’s biggest providers of floating production, storage and offloading vessels used to extract and store crude oil. (File pic)

PETALING JAYA:

 Yinson Holdings Bhd’s net profit fell by nearly half as revenue from its key business segment and rising costs dented its earnings for the year ended Jan 31, 2026 (FY2026).

The oil and gas services provider’s full year net profit tumbled 45.32% to RM683 million from RM1.25 billion while revenue dropped 28.47% to RM5.44 billion from RM7.61 billion.

The decline in profit was primarily due to a drop in revenue from engineering, procurement, construction, installation, and commissioning (EPCIC) activities, and a rise in administrative costs.

For the fourth quarter (Q4 FY2026), net profit crashed 64.5% to RM228 million from RM643 million a year ago. Quarterly revenue fell 34.7% to RM1.12 billion from nearly RM1.4 billion a year ago, according to its exchange filing today.

The steep drop in Q4 profit came from impairment losses in the renewables segment and the absence of substantial one-off gains and tax credits that had boosted the same quarter last year.

These benefits included a major disposal gain and a significant income tax credit from the group’s offshore production operations in the Netherlands.

The group declared a final dividend of 1 sen per share, payable on June 18, 2026. Year to date dividends totalled 5 sen, up from 4 sen the previous year.

On its prospects, Yinson said the floating production, storage and offloading (FPSO) market outlook remains positive over the medium- term, with most activity concentrated in South America, West Africa and Southeast Asia.

The global energy infrastructure group is one of the world’s biggest providers of FPSO vessels, which are used to extract and store crude oil.

“The group’s fleet of FPSOs is fully operational. Steady cash inflows from operations, underpinned by Yinson Production’s approximately US$19.5 billion (RM76.8 billion) contracted revenue backlog secured through long-term charters of 15 to 20 years,” it noted.

It is estimated that more than 100 billion barrels of new reserves will be required to fill the global demand gap between 2030 and 2050.

Its shares closed 9 sen or 3.8% lower at RM2.29, valuing the group at RM7.37 billion. Year to date, the stock has fallen by 3%.

Yinson was founded by its executive chairman Lim Han Weng, 73, and his wife Bah Kim Lian in 1984, as a lorry transport company before diversifying into the oil and gas sector. Kim Lian is an executive director while his son, Chern Yuan, is the group’s CEO.

The group is also in the business of producing renewable energy and building electric vehicle charging networks. - FMT