KUCHING: Dayang Enterprise Holdings Bhd has chalked up robust earnings with group net profit surged to about RM76.4 million in third quarter ended Sept 30, 2023 (3Q2023) from RM52.9 million in 3Q2022 or an increase of RM23.5 mil.
The higher utilisation of offshore support vessels (OSVs), coupled with increased work orders received from oil majors for topside maintenance contracts, boosted the profits.
During the same period, group revenue rose marginally to RM343.8 million from RM338.3 million. Earnings per share rose to 6.6sen from 4.57sen. Dayang has declared an interim dividend of 1.50sen per share.
The group has delivered stronger earnings in 3Q2023 as compared to immediate preceding quarter (2Q2023) when it recorded group net profit of RM64.7 million (3Q2023:RM76.4 million) on lower revenue of RM305.7 million (RM343.8 million).
“The increase in revenue in the current quarter is mainly due to higher vessel utilisation rate at 80 per cent as compared to the preceding quarter of 72 per cent, coupled with higher work orders received from the topside maintenance contracts.
“The higher profit before tax of RM119.3 million in the current quarter is mainly attributable by lower net realised/unrealised foreign exchange loss of RM1.0 million as compared to net realised/unrealised foreign exchange loss of RM18.7 million in the preceding quarter,” Dayang said in explanatory notes to its financial results.
On a nine-month 2023 period (9m2023), Dayang group net profit jumped to RM125.1 million (9m2022:RM108.7 million) but revenue was almost flat at RM761.9 million (RM761.88 million).
“There has no much difference in revenue during the current period-to-date (9m2023) as compared to the revenue in corresponding period-to-date (9m2022).
However, the gross profit has seen a larger increase of approximately 18 per cent as a result of improved daily charter rate (DCR) with better margin from vessels chartering. “Vessel utilisation for the financial period ended 30 September 2023 has improved to 60 per cent as compared to 57 per cent in the corresponding period ended 30 September 2022,” said the company.
Dayang said the pre-tax profit of RM197.5 million in 9m2023 was arrived at, after taking into account a reversal of impairment loss on financial assets of RM1.7 million negated by net realised/unrealised foreign exchange loss of RM19.7 million as compared to a reversal of impairment loss on financial assets of RM1.4 million, insurance claim received from the incident of Dayang Topaz loss on financial assets of RM11 million offset by net realised/unrealised foreign exchange loss of RM14.8 million in 9m2022.
“Despite the impact of foreign exchange loss, the group still recorded higher profit before tax of RM31.5 million as compared to the profit before tax in corresponding period-to-date as a result of higher utilisation rates for vessels with better margin,” it added.
On prospects, Dayang said the group is expecting lower activities in 4Q2023 as monsoon season starts and the group’s emphasis is on the safety of its offshore crew and assets.
“During this period, we will be working closely with our clients to plan for future activities to be undertaken in 2024. “As at September 2023, our outstanding call-out contracts stand at about RM950 million.
Moving forward, we are in the midst of tendering for contracts that we normally undertake upon expiry of various existing contracts. “We will remain prudent in managing our business affairs while continue to deliver outstanding performance,” added Dayang.
