Dayang Q1 net losses reduced, order book nearly RM3b

On the outlook, Dayang said after registering a solid financial performance in 2018, it had a good start of the year with healthy results in the first quarter of 2019 which also represented its best first quarter results since 2016.

KUALA LUMPUR: Dayang Enterprise Holdings Bhd’s managed to reduce its net losses in the first quarter ended March 31, 2019 as work orders picked up and it expects to perform better with an order book of nearly RM3bil and firm oil prices.

It announced on Thursday its net losses were RM4.13mil compared with RM21.30mil a year ago. Revenue rose by 0.5% to RM156.41mil from RM148.78mil. Loss per share were 0.43 sen compared with 2.21 sen.

The oil and gas support services company said loss before tax narrowed to RM8.50mil versus RM36mil a year ago.

“The increase in revenue and improved loss before tax in the current quarter is mainly due to higher work orders received and performed under the topside maintenance contracts. 

“In addition, the improved loss before tax in the current quarter has also taken into account the net realised/unrealised foreign exchange gain of RM1.1mil as compared to a net realised/unrealised foreign loss of RM28.5mil in the corresponding quarter,” it said.

When compared with the prceding quarter ended Dec 31, 2018, revenue fell by 45%. It made a loss before tax of RM8.5mil vs RM123.3 million in the preceding quarter due to a decrease in work orders received and performed under the topside maintenance contracts. 

“The decrease in revenue in the current quarter as compared to the immediate preceding quarter is mainly due to lower vessel utilisation rate and lower work orders from the topside maintenance services. 

There was also a net realised/unrealised foreign exchange gain of RM1.1mil as compared to net reversal for impairment loss on property, plant and equipment of RM13.6mil in the preceding quarter.

On the outlook, Dayang said after registering a solid financial performance in 2018, it had a good start of the year with healthy results in the first quarter of 2019 which also represented its best first quarter results since 2016. 

“This is despite the seasonally weak quarter which is typically affected by the adverse monsoon weather. We continued to deliver our work orders for the maintenance, construction and modifications contract (MCM) and topside maintenance services works under the pan hook-up and commissioning contract (Pan HUC) during the first quarter of 2019, albeit on a smaller quantum. 

“Vessel utilisation also came in stronger at 36% in the first quarter of 2019, compared to 27% in the corresponding period in 2018. 

“We are delighted by the relatively decent fleet utilisation, considering the slower work progress due to the inclement weather in this first quarter. The synergistic collaboration between Dayang and its subsidiary, Perdana Petroleum continues to work out well as we execute our operations with better cost control and improved efficiency,” it said.