Yinson Holdings Bhd is increasingly viewed as a strong player in the global energy transition space, with growing potential to become a leading force in the floating production, storage and offloading (FPSO) market.
UOB Kay Hian Research said Yinson made history after successfully operationalising the world’s first offshore post-combustion carbon capture system through FPSO Agogo on March 30, 2026.
The research house added that the group has also fully funded Provaris Energy’s liquid carbon dioxide tank venture, further strengthening its position in low-carbon energy solutions.
Although Yinson was not initially seen as a key beneficiary of the Middle East crisis, its sole very large crude carrier (VLCC), YP Antares, is reportedly benefiting from stronger tanker spot rates.
UOB Kay Hian said the ownership of the VLCC aligns with Yinson’s strategy of securing at least one new FPSO project annually. The group is currently competing with Bumi Armada Bhd for Mubadala’s Tangkulo gas FPSO project in Indonesia, which could receive approval by mid-2026.
The brokerage noted that growing concerns over global energy security may make FPSOs a more attractive investment option for sovereign nations, potentially accelerating demand for Yinson’s services.
Yinson’s subsidiary, Yinson Production, is also progressing on key projects including FSO Lac Da Vang and FSO Block B, with construction milestones advancing steadily. The firm said FSO Lac Da Vang could potentially achieve early delivery by mid-2026.
Meanwhile, Yinson’s Brazil-based FPSO Anna Nery continued to support earnings, contributing more than RM100 million in associate income during the fourth quarter of FY2026.
UOB Kay Hian maintained its “buy” call on Yinson with a target price of RM2.75, citing confidence in the group’s long-term growth outlook and strong FPSO pipeline.
For the fourth quarter ended FY2026, Yinson posted revenue of RM1.12 billion, down 19.48% year-on-year due mainly to lower contributions from engineering, procurement, construction, installation and commissioning activities.
However, the group said this was partly offset by stronger operational income from FPSO Maria Quiteria, FPSO Atlanta and FPSO Agogo following the start of their charter periods, as well as a RM340 million gain linked to the buy-out of the project loan for FPSO Atlanta.
