Yinson Holdings Q2 net profit up 38% on marine business boost

PETALING JAYA: Yinson Holdings Bhd saw net profit for the second quarter ended July 31, 2017 jump 38.5% on higher marine business contribution, with the chartering of FPSO John Agyekum Kufuor in June 2017 and the stronger US Dollar, resulting in higher revenue on translation into ringgit.

The group made a net profit of RM83.6 million for the quarter, compared with RM60.4 million for the same quarter in the preceding year.

This was on a 89.8% increase in revenue to RM217.2 million, compared with RM114.4 million.

The short-term to medium-term outlook in the oil and gas sector remains challenging and uncertain due to protracted oversupply, emerging new alternative energy resources and financial institutions risk appetite towards the sector. Overall global economic conditions remain challenging, with higher downside risks.

The group said, amid the challenging global economic environment and the volatility of other currencies against USD, it will strive to achieve satisfactory results for the financial year ending Jan 31, 2018.

Net profit for the six month period ended July 31, 2017 was 73.9% higher at RM143.9 million, compared with RM82.7 million.

This was on a 69.5% jump in revenue to RM389.6 million for the period under review, compared with RM229.8 million for the period ended July 31, 2016.

The stock was down three sen to RM3.48, with some 1.7 million shares changing hands. It has a market capitalisation of RM3.8 billion.