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YINSON (7293) YINSON HOLDINGS BHD invests in Canada-based marine battery solutions pioneer Sterling PBES

KUALA LUMPUR (Oct 6): Yinson Holdings Bhd has invested in Canada-based energy storage solutions company Sterling PBES Energy Solutions Ltd (SPBES) that is working to lower or eliminate dependence on fossil fuels in marine and industrial applications.

The deal is done via the group’s subsidiary Yinson Green Technologies Pte Ltd (YGT)’s wholly-owned unit Singapore-based Yinson Venture Capital Pte Ltd.

In a statement on Wednesday, the energy infrastructure and technology outfit said that the clean energy investment fits firmly in YGT’s strategy of investing in the marine electrification area, and closely aligns with the group’s climate goals of achieving carbon neutrality by 2030 and net zero by 2050.

Yinson did not provide details of the value of investment or the expected return on investment.

In addition to the investment, YGT and SPBES also entered into a binding memorandum of understanding (MoU) with the intention to form a joint-venture collaboration to accelerate the large-scale roll-out of SPBES’ solutions within selected countries in Southeast Asia and beyond, it said.

“The investment and MoU mark progressive steps in the deepening business relationship between the two companies. Yinson and SPBES initially collaborated on the design development of Hydroglyder, Yinson’s fully electric passenger craft with swappable batteries.

“[The companies] then became part of the Goal Zero consortium led by SeaTech Solutions International Pte Ltd, which was awarded funding by the Maritime and Port Authority of Singapore (MPA) and Singapore Maritime Institute (SMI) in August to provide a fully electric harbour craft solution to the Port of Singapore,” Yinson said.

It added that the partnership will leverage Yinson’s presence in Southeast Asia to offer SPBES business solutions to marine, port and other industrial energy storage sectors, as well as to establish service and assembly hubs for energy storage and battery swap solutions.

“We believe that SPBES is equipped with high standards in marine energy storage system capabilities, including advanced technology and outstanding safety features. As a pioneer in this space, SPBES is uniquely positioned to take advantage of the marine decarbonisation initiatives taking place globally,” Yinson said, adding that the partnership also aims to extend the technology to the non-maritime sectors which are centric to YGT’s electrification of mobility strategy.

The partnership, Yinson explained, would enable it to grow its green technology business, where both companies leverage existing strengths and focus on the geomarkets where they are currently active.

Yinson’s net profit for the second quarter ended July 31, 2021 (2QFY22) rose 26% to RM126 million, from RM100 million last year, on the back of a revenue of RM1.05 billion from RM995 million previously.

For the six months ended July 31, 2021 (1HFY22), cumulative net profit soared 61.9% to RM238 million from RM147 million as engineering, procurement, construction, installation and commissioning (EPCIC) activities' contribution nearly doubled. Its non-EPCIC segment, comprising vessel leasing and marine related services, also showed a higher contribution.

The group also saw lower impairment following the absence of impairment loss on tax recoverable as the improved performance more than offset the decrease in other income and higher finance costs.

Yinson declared a dividend of four sen per share — unchanged from last year — which goes ex on Nov 29.

At the time of writing on Wednesday, shares in Yinson stood at RM6.22 as it continued its upward trajectory from RM4.51 in August, valuing the company at RM6 billion.


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