“Despite (being) an oil trading and storage bub, Singapore faces inherent disadvantages to compete with Malaysia in terms of operating and labour costs and intense competition from new refining and petrochemical parks in Malaysia and Brunei,” said Mr San Naing, senior oil and gas analyst at research firm BMI.
Yinson is scheduled to release its 2QFY24F results on 29 Sep 2023. We reiterate Add, with an unchanged SOP-based TP of RM3.57. We expect Yinson’s 2QFY24F PATAMI to exceed 1QFY24’s RM208m, as Yinson will book in the full BBC rate from the FPSO Anna Nery which achieved first oil on 7 May 2023; this is the key re-rating catalyst. The standby rate for the Anna Nery from 3 Jan 2023 up to the day prior to first oil on 6 May 2023 is still under negotiation with the charterer; hence, Yinson may only be able to book this in 3QFY24F or 4QFY24F. Downside risks include project execution challenges, and higherthan-expected borrowing costs. Source: CGSCIMB Report.
FPSO Anna Nery: 67% debt funded via a five-year US$670m syndicated loan facility from 2021 33% funded via Yinson’s rights issue in May 2022 FPSO Maria Quiteria: 76% debt funded via a six-year US$720m syndicated loan facility from 2022 On 7 Aug 2023, Yinson signed a US$230m term loan to fund its equity portion of the capex FPSO Atlanta: 80% funded via a 15-year US$379.5m loan from Enauta Yinson will fund the remaining capex of US$94.9m via its internal cash balances FPSO Agogo: US$500m upfront payment from Eni Project financing bank debt of c.US$1bn Yinson will need to fund the remaining capex of US$300m, most likely via a new term loan, as reported today by Bloomberg Source :CGSCIMB Report
According to the medium-term market report, global oil demand will rise by 6 per cent between 2022 and 2028 to reach 105.7 million mb/d based on current government policies and market trends. This growth is expected to be supported by robust demand from the petrochemical and aviation sectors.
The IEA’s new report, called Oil 2023, confirms the downward trend in the demand for fossil fuels and dives into the evolving oil supply and demand dynamics through to 2028. The report sees oil use for transport going into decline after 2026, as the expansion of electric vehicles, the growth of biofuels, and improving fuel economy reduce consumption while overall consumption is expected to be supported by strong petrochemicals demand.
The FPSO space is starting to see a supply squeeze – i.e., many global FPSO players are already pre-occupied with jobs developing at hand, and hence, more recent bids have started to see very few bidders, making it very much an operator market. Source: Kenanga Research
Yinson has been recognised as a ‘ESG Industry Top Rated Company’ by global ESG Risk Rating agency, Morningstar Sustainalytics. This prestigious recognition reflects Yinson’s strong performance in environmental, social and governance (ESG) aspects, as well as its commitment to sustainability.