KUALA LUMPUR: Oil and gas services company DAYANG ENTERPRISE HOLDINGS BHD posted its best quarterly earnings ever on higher work order and increased vessel utilisation rate.
Net profit in the third quarter ended Sept 30 was more than doubled at RM107mil compared with RM48.7mil a year ago.
Revenue was up 27% to RM357.6mil.
"We are particularly excited with the higher work orders procured throughout the quarter as the job momentum has picked up significantly in the second half of 2019," the company said in a filing with Bursa Malaysia today.
Nine-month swelled to RM158mil, or 16.38 sen a share.
"More importantly, our profit in the first nine months of financial year 2019 has already surpassed that of the full year profit of financial year 2018. This will certainly pave the way for a strong financial year ending 2019," it said.
The company's strong performance year-to-date was driven by robust work orders for the maintenance, construction and modifications (MCM) contract, as well as topside maintenance services works under the Pan Hook-up and Commissioning Contract.
Consequently, vessel utilisation at subsidiary Perdana Petroleum Bhd also came in much stronger at 91%, as compared to 79% in the second quarter and 36% in the first quarter.
"Barring any unforeseen circumstances, we are optimistic that the strong earnings trend will be sustainable, premised on our large order book, estimated at RM2.5bil, implying clear earnings visibility over the next three years," Dayang said.
In August 2019, Dayang has obtained a new 15-month HUC contract from Petronas Carigali.
Meanwhile, Dayang said its group-wide debt restructuring will be completed by the first quarter of 2020. "Post-restructuring, Dayang will emerge stronger with optimal capital structure which will stand the group in good stead amid the recovery in the oil and gas sector," it said.
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