RRJ Capital, which invested US$300 million in Yinson Production’s Angola project, plans to commit another US$320 million in the funding round, according to Richard Ong, the private equity fund’s chief executive officer. Terms of the investment haven’t been finalized, Ong said.
The Singapore-based FPSO unit is estimated to report about US$680 million in earnings before interest, taxes, depreciation and amortization for the year ended 2023, said the people. Yinson is weighing a US IPO for the FPSO business as soon as 2026, the people said, asking not to be identified as the information is private.
Deliberations are ongoing and details of the funding round and the listing plans may still change, the people said. A representative for Yinson Holdings declined to comment.
Yinson Production has contracts with firms including Brazil’s state oil company Petrobras and the Angolan joint venture of energy majors BP Plc and Eni SpA. Besides RRJ, Global Infrastructure Partners and Sumitomo Corp. have also provided financing to Yinson Production’s projects.
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The company has an order book of about 100 billion ringgit (US$21 billion), which includes both firm contracts and options and will last for 20 years, its Chief Executive Officer Lim Chern Yuan said in an interview in September. Yinson wouldn’t rule out spinning off some of its businesses or selling a stake to bring in strategic investors to help grow the business, he has also said.
Apart from FPSOs, Yinson Holdings is also involved in renewable energy, green technology as well as advisory, investment and asset management via its Farosson unit, according to its website. Its shares have fallen about 7% in the last 12 months, giving the company a market value of about US$1.5 billion.
