KUALA LUMPUR: Dayang Enterprise Holdings Bhd, an oil and gas services firm, made a RM21.9mil loss in the April-June quarter, but expects its results in the coming third quarter to "improve considerably" amid on-going vaccination efforts and higher oil prices.
In the three-month ended June 30, Dayang recorded a lower revenue of RM159.7mil compared with RM170.9mil a year ago.
The decrease in revenue was mainly attributed to lower vessel utilisation at 51% as compared to 52% in the second quarter of 2020.
"This is a result of delayed work orders/contracts being awarded from oil majors in the second quarter of 2021 arising from the impact of Movement Control Order," Dayang said in a filing today.
The company said while revenue was reduced by 7%, gross profit has seen a larger reduction of approximately 37% as result of higher operating costs arising from exceptional Covid-19 related costs incurred.
Dayang suffered an impairment loss on Property, Plant & Equipment (PPE) of RM27.9mil in Q2.
Despite the year-to-date losses of RM49.4mil, Dayang said its outlook has improved.
Vessel utilisation has improved quarter-on-quarter, and together with ongoing vaccination efforts, has lent further optimism that the pandemic can be contained in the coming few months.
"As such, we believe that the outlook in third quarter of 2021 will improve considerably as crude oil price has also stabilised at a healthy level which bodes well for the oil and gas industry," Dayang said.
"In addition, our order book remains strong at an estimated value of RM2.3bil, which will ensure healthy earnings visibility over the next few years," it added.