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Yinson sees Q2 profit down 23% on provisions

Yinson sees Q2 profit down 23% on provisions
Oil and gas services provider and budding FPSO vessel player Yinson Holdings saw second quarter net profit fall by almost a quarter to MYR60.4m ($14.7m) from MYR78.4m in the previous corresponding period due to impairment of receivables.

Yinson said in a stock market announcement that second quarter revenue rose by 16% to MYR114.5m from MYR98.4m on the back of higher activity and a stronger US dollar.

Revenue from its key marine segment had risen by 16% to MYR229.8m from MYR197.4m in the previous corresponding period, driven mainly by higher marine business and the stronger US Dollar had resulted in the higher revenue that was translated into Ringgit.

Marine segment pre-tax profits rose 37% to MYR74.7m mainly due to increase in revenue and improvement in gross profit margin however this was offset by impairment of receivables of MYR11m.

For the first half, net profit declined by 7% to MYR82.8m from MYR88.8m previously, while revenue for the period rose 16% to MYR229.8m compared to MYR197.5m previously, supported by its floating production, storage and offloading business activities and stronger US dollar.

Looking ahead, Yinson said the short-term to medium-term outlook in the oil and gas sector remains challenging and uncertain due to protracted oversupply.

"Overall global economic conditions have become increasingly challenging, with higher downside risks. Moving forward, global economic activity is expected to remain subdued despite unprecedented easing of monetary conditions in major economies," Yinson concluded.

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