Dayang 4Q net profit rose sixfold to RM94m

DAYANG Enterprise Holdings Bhd saw its net profit rise sixfold in the fourth quarter ended Dec 31, 2023 (4Q23) to RM93.8 million from the same period last year on the back of RM351.1 million in revenue due to better margins from vessels chartering and much lower expenses attributed by a reversal of impairment loss on property, plant and equipment.

In an exchange filing yesterday, the integrated oil and gas (O&G) service provider said 4Q23 revenue was up 58% mainly as it managed to complete a few outstanding job orders under topside maintenance contracts, despite it being the monsoon season.

The improved daily charter rates (DCRs) of vessels following an uptrend in offshore production operations resulting in a higher demand for offshore support vessels and the increase in the chartering of third-party vessels also contributed to the higher revenue generated,” it said.

For the full financial year (FY23), Dayang posted a net profit of RM218.9 million, up 81% from the year before, on RM1.113 billion in turnover, up 13.1% from FY22.

It said the higher revenue in the current year, despite lower vessels utilisation rates at 58% as compared to 60% achieved in corresponding year, was mainly due to the improved DCRs with better margin from vessels chartering, increase in the chartering of third-party vessels and also more work orders/contracts being awarded from oil majors during the financial year

On its profitability, it said the group had made a reversal of impairment loss on property, plant and equipment of RM41.7 million, partially negated by net realised/unrealised foreign exchange loss of RM12.1 million and impairment loss on goodwill of RM6.0 million.

The better profit achieved was also due to the reduction of depreciation charges arising from the revision of AHTS useful life, it said.

Dayang shares closed at RM2.33 yesterday, valuing the company at RM2.582 billion. – TMR