PETALING JAYA: Yinson Holdings Bhd, which undertook a kitchen-sinking exercise in the fourth quarter of its financial year 2025 (4Q25), could see its financial year 2026 (FY26) to FY27 earnings coming in lower due to higher operating expenditure.
Yinson recognised a one-off cost provision totalling RM426mil, largely related to the floating production, storage and offloading (FPSO) vessel Atlanta in 4Q25 causing its results to come in below expectations. Without this, Yinson’s results would have been within expectations, said Maybank Investment Bank Research (Maybank IB).
Dure to the provisions, Yinson booked a core net loss of RM323mil in 4Q25, bringing cumulative full-year FY25 core earnings to RM118mil.
Positively, the research firm said FPSO Atlanta achieved first oil on Dec 31, 2024, allowing the asset to rake in an estimated bareboat charter rate of US$230,000 per day.
As such, Maybank IB believes that Yinson will be able to comfortably raise its dividend per share payout from FY26 as the group moves away from its capital expenditure cycle.
It said the FPSO market is currently in its “Golden Age” due to a robust global tender pipeline with an expected 13 awards over the next 12 months. “Yinson may be looking for one new job next year (FY26) in the mid-sized segment for bankable projects with high upfront payment from end-clients,” it said in a report.
It has kept its “buy” call on the stock with a target price of RM4.33.
