Dayang expects higher oil prices to lift Q3 results

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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Deloitte: Govt may consider extending HOC campaign to the secondary markets
Profit taking weighs on Bursa Malaysia
OCBC Bank expects Budget 2022 to stay expansionary
Banking at your fingertips made easy via CIMB Clicks
MIER forecasts real GDP growth for 2021 at 4%
MIER expects Malaysia's balance of payments to improve
Bursa Securities suspends Serba Dinamik until further notice
September inflation above forecast, Terengganu highest in country
Ageson unit partners ShuangLing to undertake RM95.2mil GDV development
China will take steps if FX market fluctuations become too big

Others Also Read