Yinson Production’s CFO: Two new project bonds on the 2026 horizon to refinance FPSO duo

Foreseeing no financing woes to hinder its progress, Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, is eyeing refinancing opportunities for two floating production, storage, and offloading (FPSO) units with new project bonds on the cards next year.

With a lease-and-operate model as the crown jewel of its FPSO strategy to build ‘better FPSOs for cheaper price,’ according to its Chief Financial Officer (CFO), who pinpoints carbon capture technologies and energy efficiency tools as the best paths to take toward ushering in a net zero future, Yinson Production has nine operating assets and two units under construction, leading to $19.9 billion in contracted revenue backlog through 2050, including options.

Flemming Grønnegaard, Chief Executive Officer (CEO) of Yinson Production, highlighted: “Across our assets in Brazil, Southeast Asia and West Africa, we have built a strong track record of on-time delivery and operational excellence, with an exceptional technical uptime and safety performance. The consistency and reliability of our project execution and operations create value for our clients and underpin the strong demand and growth momentum we see.”

As the offshore energy arena turns into a more diversified playground while its importance to global energy security surges upward, floating production units are forecast to play a crucial role in bringing these resources to the market. Within the financial game to bankroll the offshore energy industry’s new and ongoing development projects across the global playground, the firm is using the lease and operate financial model to navigate the fast-changing energy market landscape and pitfalls.

To this end, expanding the banking pool, broadening the funding base, and innovating financing is the name of the game for the Malaysian firm, which intends to continue on this path in the mid-size FPSO segment, thanks to the ongoing demand for oil and gas, helping to put all the required financing in place to build these units. 

Markus Wenker, Yinson Production’s CFO, emphasized:“The diversification of our funding base supports Yinson Production’s strategic goals. Through the refinancing of approximately $2.8bn in bank debt in the debt capital markets over the past 18 months, we have freed up bank exposure limits and created new lending capacity to support further growth.”

The company has $608 million in enterprise reporting revenue, $402 million in adjusted enterprise EBITDA, and $1.7 billion in equity on its standalone balance sheet. Yinson Production’s lease and operate model is said to ensure long-term uptime and value for clients while maintaining flexibility to invest in digitalization innovation and carbon reduction, depending on market conditions.

Grønnegaard added: “With first oil four months ahead of schedule, the Agogo FPSO is a great example of how quickly we can deliver, while Abigail-Joseph is showcasing our operational track record with over 4 million LTI-free man-hours. Together, they exemplify why operators trust Yinson Production when reliability and performance matter. We do not just build FPSOs – we provide highly reliable and cost efficient FPSOs as a service.

“The lease-and-operate model creates strong alignment of interests with our clients, ensuring that we are fully incentivised to deliver performance and reliability over the long term. Through disciplined financing and responsible decarbonisation embedded in every project, we contribute to both energy security and the global energy transition.”

The Malaysian player has confirmed plans to explore two new project bonds in 2026, extending its track record of innovative capital market access by pursuing refinancing of the FPSOs Atlanta in Brazil and Agogo in Angola.

Wenker underlined: “Despite the changing financial markets landscape, our financing strategy – focused on diversifying our funding base, creating capital velocity, and innovating financing structures – has proven that long-term financing for FPSOs remains available.

“Over the last three years, we have more than doubled the weighted average maturity of our debt financings and substantially strengthened our capital structure. Subject to market conditions and our project pipeline, we plan to return to the markets with up to two new project bonds in 2026 for the refinancing of FPSO Atlanta and the Agogo FPSO.”

Yinson Production’s CFO expects this move to “further strengthen and diversify FPSO project bonds as an emerging asset class, providing resilience through uncorrelated, highly visible long-term contracted cash flows.” The company has advanced its zero-emission FPSO concept, integrating carbon capture and electrification technologies to reduce emissions by up to 27% on the FPSO Agogo.

The Malaysian giant, as the ‘production arm’ of oil producers and field operators, which either builds new units or converts existing oil tankers, has carved a place for itself in the floating production market’s developing tale of reconciling energy security and sustainability dilemma by striking a balancing act between the two to power the world with more energy that has a lower emissions footprint.

The Malaysian giant is strategically targeting emission-lowering technologies on existing and new assets by implementing elements such as close flare, full electrification, hydrocarbon blanketing, combined cycle power generation on new assets, and carbon reduction technologies on existing fleets. The firm is progressing the Stella Maris CCS full carbon capture and storage value chain project in partnership with Harbour Energy, with a final investment decision (FID) targeted for 2026.

By developing and piloting carbon capture and removal technologies for its offshore fleet and new business ventures, Yinson Production will further develop and mature elements of its zero emissions FPSO while continuously working towards increasing efficiency and reducing emissions on operating assets, executing projects and developing its business within the carbon management value chain.

For the Malaysian FPSO titan, maturing and implementing the zero-emission FPSO concept is key to lowering the offshore production fleets’ emissions to net zero.

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