KUCHING: Dayang Enterprise Holdings Bhd has chalked up sharply higher group net profit of RM134.9 million in third quarters to September 30, 2024 (3Q2024) from RM76.4 million a year ago, or up by RM58.6 million or 77 per cent.
Group revenue surged to RM448.5 million from RM343.7 million during the same period.
This drove company’s earnings per share to 11.66sen from 6.6sen.
The company had proposed an interim dividend of 3sen per share against 1.5sen in 3Q2023.
Dayang said in the current quarter under review, group revenue climbed by RM104.8 million (+30%) as a result of higher vessel utilisation rate of 86 per cent from 80 per cent in 3Q2023.
“The shortage of offshore support vessels for offshore production and operation activities continue to be the main reason for higher demand and improved daily charger rates (DCR) for both own and third-party vessels.
In addition, more work orders/contracts being awarded from oil majors received under topside maintenance contract also contributed to higher revenue generated.
“The group posted a higher profit before tax of RM222.3 million in the current quarter as compared to a profit before tax of RM119.3 million in the corresponding quarter ended 30 September 2023.
Besides the higher vessel utilisation and DCR ,the impact of foreign exchange difference also contributed to higher profit before tax in the current quarter due to the strengthening of Malaysian ringgit.
“A net realised/unrealised foreign exchange gain of RM49.9 million has been recorded in the current quarter as compared to a net realised/unrealised foreign exchange loss of RM1.0 million in the corresponding quarter of 2023,” the company said in explanatory notes to its financial results.
As compared to the immediate preceding quarter (2Q2024), Dayang’s 3Q2024 group net profit rose by RM3.5 million to RM134.9 million (2Q2024:RM131.44 million) despite a drop in revenue by RM7.33 million to RM448.5 million (RM455.84 million).
“The slightly lower in revenue in the current quarter is mainly due to lower vessel utilisation rates and lesser work orders received and performance under topside maintenance contracts.
Vessel utilisation rates in the current quarter is 86 per cent as compared to 91 per cent in the preceding quarter.
“Despite the lower revenue recorded in the current quarter, the profit before tax grew by RM27.3 million or 14 per cent compared to profit before tax in the preceding quarter.
A net realised/unrealised foreign exchange gain of RM49.9 million has been recorded in the current quarter as compared to a net realised/unrealised foreign exchange gain of RM0.9 million in the preceding quarter of 2024 due to the strengthening of the Malaysian ringgit,” explained Dayang.
During the January-September 2029 period (9m2024), Dayang posted sharply higher group net profit of RM294.3 million (9m2023:RM125.1 million) or an increase of RM169.2 million (+135%) as revenue soared to RM1.15 billion (RM761.9 million) or up by RM389.6 million (+51%).
“The higher revenue in the current period is mainly attributable to improved daily charter rates with better margin from vessel chartering, higher demand on third-party vessel chartering and more work orders/contracts being awarded from oil majors received under the topside maintenance contracts.
Vessel utilisation rates in current period has improved to 76 per cent as compared to 60 per cent in the corresponding period.
“The higher profit before tax recorded in the current period has taken into account net realised/ unrealised foreign exchange gain of RM40.0 million as compared to a net realised/unrealised foreign exchange loss of RM19.7 million in corresponding period-to-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 Sukuk Murabahah on 14 November 2023,” said the company.
On prospects going forward, Dayang said in 4Q2024, the group secured three contracts for primary period of five years with an option to extend for another five years (5+3+2).
“It is estimated that the call-out value to be about RM4 billion for the primary five years.
This would increase our existing estimated callout contracts to RM5.3 billion and improve earning visibility for the next five years,” it added.
Dayang said the group will continue to participate in new tender activities, and with a good execution track record, we believe we would be able to secure more tenders in the future.
“We will remain prudent in managing business affairs while continuing to deliver outstanding performance,” it added.
