Yinson Well-positioned To Benefit From Offshore Investment Upswing

KUALA LUMPUR, June 26 (Bernama) -- Yinson Holdings Bhd is well-positioned to capitalise on a potential upcycle in upstream offshore investments, particularly within the floating production, storage and offloading (FPSO) segment. 

CIMB Investment Bank said the near-term earnings visibility of the integrated provider of comprehensive FPSO solutions remains supported by long-term contracted cash flows from its existing FPSO fleet. 

The investment bank noted that the Tangkulo FPSO tender remains on track, with results expected to be announced in the third quarter of this year (3Q 2026). 

The group is also bidding for the build-operate-transfer contract for FPSO Albacora in Brazil, which is expected to have an operational phase of five to seven years. 

There are six bidders for FPSO Albacora, including Yinson, and results are expected in the second half of the year. 

Additionally, the group is also evaluating a potential Vietnam project with an investment of about US$1 billion. 

"While details remain limited, we expect further updates by year-end," it said.

Overall, CIMB maintained a ‘buy’ call on Yinson, with a revised sum-of-parts target price (TP) of RM2.85 from RM2.93 previously, based on revised earnings.

It said key re-rating catalysts include potential privatisation and effective deployment of the redeemable convertible preference shares (RCPS) proceeds into the next phase of growth through new job wins. 

Downside risks include higher-than-expected losses from the green technology division and operational challenges that could dampen FPSO uptime.

Similarly, RHB Investment Bank also placed a ‘buy’ call on the stock, and remained constructive on its medium-term outlook for Yinson, underpinned by a growing base of recurring FPSO charter income and a robust US$19.3 billion orderbook that provides long-term earnings visibility through 2050. 

It said underlying earnings should strengthen on the back of a full-year contribution from FPSO Agogo in financial year 2027 (FY27), while FSO Lac Da Vang remains on track for first oil in 4Q 2026, providing an incremental earnings contribution towards the end of FY2027 and a more meaningful uplift from FY2028 onwards. 

As at 11.36 am, Yinson’s share price was seven sen lower at RM1.89, with 2.73 million shares traded. 

-- BERNAMA