KUALA LUMPUR: Dayang Enterprise Holdings Bhd, an oil and gas (O&G) 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 ongoing vaccination efforts and higher oil prices.
In the three-month period ended June 30, 2021 (Q2), 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 Q2 of 2020.
“This is a result of delayed work orders/contracts being awarded from oil majors in Q2 of 2021 arising from the impact of the movement control order,” Dayang said in a stock exchange filing yesterday.
The company said while revenue was reduced by 7%, gross profit has seen a larger reduction of approximately 37% as a result of higher operating costs arising from exceptional Covid-19-related costs incurred.
Dayang suffered an impairment loss on property, plant and equipment of RM27.9mil in Q2 of 2021.
Despite the year-to-date losses of RM49.4mil, Dayang said its outlook has improved.
Vessel utilisation has improved quarter-on-quarter, it said.
Together with ongoing vaccination efforts, it has lent further optimism that the pandemic can be contained in the coming few months, it added.
“As such, we believe that the outlook in Q3 of 2021 will improve considerably as crude oil price has also stabilised at a healthy level which bodes well for the O&G 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.