Large FPSO charter around the corner for Yinson, says AmResearch

KUALA LUMPUR: AmResearch has downgraded Yinson Holdings to HOLD from BUY with a higher fair valuation of RM3.67/share, based on a sum-of-parts valuation, which implies an FY16F PE of 29 times and EV/EBITD of 15 times – a 15% premium to Bumi Armada’s 13 times.

In a note on Monday, AmResearch said the higher SOP stems from raised capex assumption for the very large FPSO vessel – up from US$700mil to US$1bil, reflective of Bumi Armada’s Block 15/06 Angolan FPSO, which is estimated to cost US$1.5bil.