The contract day rates will be paid to Yinson for 15 years until 2039.
PETALING JAYA: Yinson Holdings Bhd
’s offshore business arm, Yinson Production, has announced that its Atlanta floating production, storage and offloading (FPSO) vessel achieved first oil on Dec 31, 2024, marking the commencement of its firm charter.
In a statement, Yinson said the 72-hour test was successfully completed and final acceptance was obtained from Brava Energia SA.
The contract day rates will be paid to Yinson for 15 years until 2039.
“This accomplishment showcases our commitment to delivering exceptional operational performance, while prioritising sustainability and safety.
“Our team’s dedication and expertise have been instrumental in bringing this project to fruition, and we look forward to a successful 15-year charter,” said Yinson Production chief executive officer Flemming Gronnegaard.
FPSO Atlanta, which will operate in the Atlanta field in the Santos Basin offshore Brazil, has a production capacity of 50,000 barrels of oils per day and a maximum storage capacity of 1.2 million barrels.
According to Yinson, the vessel will feature an efficient carbon management process plant, which utilises fuel gas for cargo tank inertisation that will significantly reduce flare gas emissions through a closed flare system.
The plant introduced is part of Yinson Production’s continuous sustainability efforts in reducing carbon emissions, positioning the company as a frontrunner in decarbonising the FPSO industry towards achieving net zero.
Yinson said the project achieved an impressive safety milestone of 9.8 million man-hours without a lost time incident.
For the third quarter ended Oct 31, 2024 of financial year 2025 (3Q25), Yinson’s net profit fell to RM200mil from RM248mil in the previous corresponding period, due to lower revenue and higher administrative and finance costs.
Revenue for the quarter dropped to RM1.85bil from RM2.81bil a year earlier.
In a recent report, RHB Research said it expected Yinson’s earnings to pick up in 4Q25, led by maiden earnings contributions from FPSO Maria Quitéria (MQ) and FPSO Atlanta.
“Global FPSO demand remains robust and Yinson is comfortable to secure another project as its current ones are approaching the tail-end of the conversion stage. We also see potential monetisation of its FPSO units as potential near-term catalysts for capital recycling,” it said.
Additionally, the research house noted that the group’s FPSO MQ achieved first oil in mid-October last year.
“FPSO Agogo is on track for conversion, being 80% completed. First oil has been scheduled for 4Q26,” it added.
RHB Research said Yinson is still actively bidding for new projects. As it is currently a vendor’s market, the research house stated that the group is expected to accelerate its new project take-up, with two new jobs anticipated over the next two years.
RHB Research highlighted that the potential monetisation of the FPSO projects is still ongoing and should allow Yinson to fund new projects without resorting to equity fundraising.
“Yinson remains committed to paying quarterly dividends, with a five-year 30% compounded annual growth rate guidance.
“This is premised on strong earnings and cash flow, with earnings before interest, taxes, depreciation and amortisation and free cashflow potentially hitting US$1bil and US$300mil, respectively,” it concluded.
