In a note today, RHB Research said Yinson’s second quarter for financial year 2019 (FY19) core profit came at RM65.5 million, bringing cumulative first-half FY19 core earnings to RM128.4 million.
“This comes within our expectations, at 57.2% of our full-year forecast but below consensus at 43.5 per cent,” it said.
RHB Research said core profit declined year-on-year, driven by the disposal of its 26% equity stake, mainly in floating production storage and offloading (FPSO) Ghana (completed on June 6) and the absence of a profit contribution from FPSO Lam Son where its charter was prematurely terminated back on June 30.
RHB said while earnings were weak, these were compensated by disposal proceeds from the FPSO Ghana stake sale (RM488.53 million) and compensation for the premature termination of the charter involving FPSO Lam Son (RM871 million).
“We still like Yinson as its balance sheet is stronger after the FPSO Ghana stake disposal, while proceeds from FPSO Lam Son and the RM1.5 billion perpetual sukuk issuance allow for more headroom to win another FPSO contract, as the industry recovers,” it added.
As at 11.40am, Yinson’s stock price was flat at RM4.55 with 171,200 shares traded.