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Financial Analysis of Yinson Holdings Sdn Bhd GROUP MEMBERS NGUYEN THI DIEM MY
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Table of Contents 1.0 Introduction ........................................................................................................................... 2 2.0 SWOT & PESTEL Analysis ................................................................................................. 3 2.1 SWOT Analysis ................................................................................................................. 3 2.2 PESTEL Analysis .............................................................................................................. 4 3.0 Horizontal & Vertical Analysis ............................................................................................. 6 3.1 Analysis of Income Statement .......................................................................................... 6 3.2 Analysis of Financial Position .......................................................................................... 7 3.3 Analysis of Cashflow Statement ....................................................................................... 8 4.0 Ration Analysis ................................................................................................................... 10 4.1 Profitability ratio ............................................................................................................. 10 4.2 Liquidity ratio .................................................................................................................. 11 4.3 Cashflow ratio ................................................................................................................. 12 4.4 Market value ratios .......................................................................................................... 12 4.5 Asset Management Ratios ............................................................................................... 14 4.6 Solvency Ratios ............................................................................................................... 15 5.0 Recommendation ................................................................................................................ 17 6.0 Conclusion .......................................................................................................................... 19 7.0 Appendices ......................................................................................................................... 20 7.1 Statements and Analysis .................................................................................................. 20 7.2 SWOT Analysis ............................................................................................................... 33 7.3 PESTLE Analysis ............................................................................................................ 34 8.0 References ........................................................................................................................... 36
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1.0 Introduction The oil and natural gas, known as O&G is the backbone of Malaysia’s economic growth, having recognized as the second largest oil and gas producer in Southeast Asia. The national oil firm, Petronas, the leader in all activities related to oil and gas since 1974, has significantly contributed around 35% of Malaysia’s revenue. The history pens the oil discovery in Sarawak, Malaysia over a century ago has given the key frontier in development and growth of Malaysia along with opportunities for many oil companies to capitalize the upstream and downstream sectors of O&G industry. One of the local oil related company that stand in the globe is Yinson Holdings Berhad, an integrated offshore production and support services provider. Yinson was established in 1983 whom started as a transport agency business in Johor Bahru. After a decade, Yinson gradually expand its territory to offshore production, capture significant growth and made its way on the Main Market of Bursa Malaysia Securities Berhad. In recent years, Yinson’s venture in offshore service garnered one of the largest FPSO (Floating, Production, Storage and Offloading) in the world, having vast geographical presence in USA, Africa, Vietnam, Singapore and Malaysia. To date (April 2019), Yinson Holdings Berhad market capitalization stands at RM5.02 Billion. The purpose of this study is to critically analyze Yinson’s financial condition by creating more in- depth financial accounting statement in order to make effective management decision.
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2.0 Horizontal & Vertical Analysis Horizontal analysis indicates the changes in business and the direction it is heading over time and vertical analysis shows the relationship of the elements to its base of the financial statement which are Revenue and Net Assets to describes the performance of the company from 2016 to 2018 . 2.1Analysis of Income Statement Horizontal analysis shows the revenue of the company increased 28% in 2017 followed up with a more significant increase of 67% in the following year. As the revenue increased, the cost of sales also increased by 3.76% in 2017 to 34.06% in the year 2018. This indicates that, as the revenue increased, Yinson Holdings had to increase the cost to cater for the additional sales which is a normal occurrence. Vertical analysis shows that the cost of sales decreased each year in comparison to percentage in revenue, 61% in 2016, 50% in 2017, and 40% in 2018. Hence
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  • Summer '17
  • mani
  • Balance Sheet, Generally Accepted Accounting Principles, Yinson

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