KUCHING: Dayang Enterprise Holdings Bhd has chalked up impressive earnings, with group net profit more than doubled to RM131.4 million in second quarter to June 30, 2024 (2Q2024) from RM64.69 million a year ago, bolstered by higher utilisation of offshore supply vessels and award of topside maintenance order/ contracts.
Group revenue surged to RM455.8 million from RM305.7 million or up by RM150.1 million or 49 per cent during the same period.
This boosted earnings per share to 11.35sen from 5.59sen.
“The higher revenue achieved in second quarter of 2024 was principally attributable to higher vessel utilisation rate of 91 per cent as compared to 72 per cent in the corresponding quarter.
“The shortage of offshore supply vessels for offshore production and operation activities continue to be the main reason for higher demand and improved daily charter rates (DCR) for both own and third-party vessels.
“In addition, more work order/ contracts being awarded from oil majors received under topside maintenance contracts also contributed to higher revenue generated,” Dayang said in explanatory notes to its financial results.
Dayang’s subsidiary Perdana Petroleum Bhd is involved in the charter of offshore supply vessels, which include workboats, accommodation barges and anchor handling tug supply (AHTS) vessels.
In 2Q2024, Dayang recorded sharply higher group pre-tax profit of RM194.93 million (2Q2023:RM97.38 million) which was also contributed by the RM0.9 million in net realised/unrealised foreign exchange gain as compared to loss of RM18.7 million in 2Q2023.
Dayang’s group net profits in 2Q2024 of RM131.4 million was a big jump from RM27.9 million in the immediate preceding quarter (1Q2024) or up by RM103.5 million (371%) as revenue of RM455.8 million was significantly higher than RM247.1 million in 1Q2024 or up by RM208.7 million (84%).
“The significant increase in revenue in the current quarter is mainly due to higher vessel utilisation at 91% compared to 48% in the first quarter of 2024 due to shortage of offshore support vessels for offshore production and operation activities.
“In addition, more work order/ contracts awarded from oil majors received under topside maintenance contracts also boost the revenue in the current quarter,” said explained Dayang.
On a six-month period in 2024 (6m2024), Dayang delivered strong earnings, with group net profits climbed to RM159.34 million (6m2023:RM48.75 million) or up by RM110.6 million (227%) as revenue soared to RM702.96 million (RM418.15 million) or up by RM284.8 million (68%).
Dayang attributed the strong performance to improved daily charter ates for vessels, increased demand on third-party vessel chartering and more work order/ contracts being awarded from oil majors for topside maintenance works.
Vessel utilisation rates in 6m2024 has improved to 71 per cent from 49 per cent in 6m2023.
“The higher profit before tax recorded in the current period (RM239.79 million) (6m2023:RM78.22 million) has taken into account net realised / unrealised loss on foreign exchange of RM9.9 million as compared to net/realised/unrealised loss on foreign exchange of RM18.7 million negated by a reversal impairment loss of financial assets of RM1.7 million in the corresponding periodto-date.
“The better profit achieved is also due to lower finance cost incurred as the group accepted a new secured term loan to fully redeem the Series 5 and Series 6 in respect of the first issuance of Sukuk Murabahah under existing Sukuk Murabahah Programme on 14 November 2023,” said Dayang.
Commenting on prospects for the current financial year, Dayang said the group’s 2Q2024 performance reflects the robust activities in the maintenance, construction and modification (MCM) and hook-up and commissioning (HUC) projects, coupled with higher vessel utilisation rates.
“We are confident that we can sustain the similar performance in the 3rd quarter given the overall industry optimism supported by stable crude oil price.
“For FY2024, the earnings visibility will remain fairly strong with an outstanding estimated call-out contracts of about RM1.39 billion.
Moving forward, we continue to wait for the results of the new umbrella contacts for MCM and HUC.
“We will remain prudent in managing our business affairs while continuing to deliver outstanding performance,” added the company.
