Yinson's gearing had spiked to a massive 2.5 times after it bought FPSO operator Fred Olsen Production (FOP) in a MYR576m ($173m) deal last year. Reports cited sources as saying Yinson aimed to bring this down to below 1.5 times and the funds would likely be raised through a rights issue.
While the acquisition of FOP, leapfrogged Yinson into the big leagues in the floating production storage and offloading (FPSO) stakes, it piled on a huge amount of debt to do so.
The deal was paid for, in addition to two share placements, with MYR400m in bank borrowings and MYR14m in internal funds, pushing up Yinson’s total debt to MYR1.28bn.
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