KLSE (MYR): YINSON (7293)
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Joel
4,580 posts
Posted by Joel > 2014-10-23 10:36 | Report Abuse
This contract extension as well as the sale of Yinson’s 50%-owned
Petroleo Nautipa validates Yinson’s purchase of Fred Olsen
Production (FOP) as it has created values along the way. While the
contract extension is on improved terms, the latter was sold to BW
Offshore at a higher value than Yinson’s initial cost.
Winning an FPSO contract outside Vietnam would fully endorse the
M&A of FOP. The outcome of the Ghana FPSO project would likely
be known by end-2014. Bagging the Ghana job would significantly
be earnings accretive (NP: MYR150m p.a.) and lift our MYR3.03 TP.