Yinson hoists its sails to expand marine offshore services
With the increased demand for mid-sized floating production, storage and offloading (FPSO) projects in Asia, Yinson Holdings secures a strong footing through long-term strategic partnerships for better market prospects.
Led by a father-and-son team, Yinson started as a land-based transport agency in 1983 and has transformed into one of Malaysia's premier FPSO service providers. Taking advantage of the emerging oil and gas segment in Southeast Asia, Yinson has shifted to oil and gas upstream activities, from which it derives 80 per cent of its revenue.
"We concentrate on oil and gas offshore production and storage, focusing on mid-sized FPSO vessels," says Lim Han Weng, managing director. "This distinguishes us from our competitors, who look into large-scale FPSO units."
With the acquisition of Norwegian shipping firm Fred. Olsen Production (FOP) in December last year, Yinson is set to become one of the top two FPSO contenders in Southeast Asia and the sixth-largest in the world. Upon integration of the two companies, Yinson will benefit from FOP's extensive network and gain access to oil and gas frontiers in South America, Europe and Africa, apart from Yinson's regional channels in Vietnam, Indonesia and Malaysia.
"We want to increase our fleet size and expertise with a bigger and stronger team," says Lim Chern Yuan, executive director. "Being competitive globally is our driving force towards a sustainable business model."
To stay competitive and sustain oil and gas offshore demands, Yinson inked a HK$5.7 billion deal with PetroVietnam Technical Services Corporation (PTSC) in 2012. Yinson will provide an FPSO facility for PTSC's energy project, with a seven-year bareboat charter that could be extended for another three years.
"We grow with our clients as they go overseas," Lim Chern Yuan says. "Apart from supplying FPSOs, we provide supply vessels and logistics services to assist them in their expansion."
Yinson's first floating storage and offloading (FSO) vessel, co-owned with PTSC, set sail into Vietnamese waters last year on a 20-year charter contract. Building its Asian base in the deeper port harbour of Vietnam, Yinson has acquired 40 per cent equity of PTSC's Phu My port, where Yinson plans to build two warehouses, adding to its facilities in Malaysia and Singapore.
Yinson's key clients also include state-owned oil companies and oil majors such as Shell, Sinopec and Petronas.
Yinson thrives in a capital-intensive business through careful evaluation of potential dealings coupled with strong business ethics. "We are disciplined in our undertaking and our resources," Lim Han Weng says. "We provide cost-effective, quality and on-time delivery service while upholding safety standards."
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