KUALA LUMPUR: Shares in Dayang Enterprise Holdings Bhd fell marginally after reporting a 83% slump in its net profit in the fourth quarter ended Dec 31, 2020.
The integrated services to the oil and gas provider fell two sen, or 1.32% to RM1.49 with 7.5 million shares traded.
Dayang’s profit tumbled 83.17% to RM13.17mil in the fourth quarter ended Dec 31, from RM78.23mil a year ago, dragged by slower work orders due to the pandemic.
Its revenue fell 44.49% to RM158.23mil, from RM285.02mil.
For the full year ended Dec 31, 2020, Dayang’s net profit plunged 75.07% to RM57.59mil, from RM230.95mil in the previous year, as revenue slipped 30.08% to RM731.44mil from RM1.05bil.
Kenanga Research said Dayang’s 4QFY20 came in weaker, as anticipated, with the monsoon season resulting in lower work orders and vessel utilisation.
“FY20 core net profit of RM61mil came in within expectations at 99% of our, and 95% of consensus full-year, forecast. No dividends were announced, as expected,” it said.
“Moving forward, in tandem with the recent rebound in crude oil prices, we are expecting Dayang to see a recovery in workflows, especially in 2022. Maintain ‘market perform’ albeit with a higher target price of RM1.45,” Kenanga said.