PETALING JAYA: Dayang Enterprise Holdings Bhd
’s latest contract win for the provision of six accommodation workboat vessels (AWBs) to PETRONAS Carigali Sdn Bhd (PCSB) is projected to add up to RM17mil in net profit for its financial year ending Dec 31, 2025 (FY25).
Phillip Capital Research estimated that the current spot daily charter rates (DCR) for AWBs with similar capacities range from RM120,000 to RM130,000, leading the firm to value the total contract between RM75mil and RM85mil.
With a 20% net profit margin assumption, the research outfit projects the earnings contribution from these contracts to fall between RM15mil and RM17mil, accounting for roughly 5% of its net profit forecast on Dayang for FY25.
“We are positive on the contract win as Dayang continues to benefit from favourable DCR amid tight vessel supply in the market,” it noted.
Meanwhile, Kenanga Research noted that this development helps ease near-term concerns about a potential slowdown in upstream maintenance activities in Sarawak.
While the exact contract value wasn’t disclosed, Kenanga Research estimates that four-point mooring work boats with up to 200 pax accommodation capacity would fetch a slightly lower DCR of between RM80,000 and RM100,000.
“This would amount to revenue of approximately RM58mil, assuming an average DCR of RM90,000 and an average contract duration of 107 days,” it noted.
Looking ahead, Kenanga Research emphasised Dayang's solid order book, currently valued at RM1.4 billion, which it believes provides sufficient runway to sustain the company’s topside maintenance work orders through FY24.
Kenanga Research said this year is expected to mark the tail-end of the yearly extension of Dayang’s previous umbrella topside maintenance and hook-up and commissioning (HUC) contracts from Petronas and other clients.
“We believe that the next round of umbrella contracts could be awarded by the end of FY24, and if not, Dayang is likely to secure extensions for its maintenance works due to the expected high demand,” it added.
Phillip Capital Research reiterated its “buy” rating for Dayang, with an unchanged target price (TP) of RM4.50 per share.
“We remain positive on Dayang’s outlook, driven by increased offshore activities, higher service and vessels rates, as well as improved vessel utilisation,” the research firm said.
Kenanga Research maintained its “outperform” call on the stock with a TP of RM3.80 per share.
“We like Dayang due to the sustained ramp-up in upstream maintenance activities, anticipated margin expansion from better contract terms, its net cash balance sheet allowing for future expansions, and its marine division benefitting from the boom in offshore support vessel (OSV) demand,” it noted.
At the close of the early session, Dayang’s shares were trading at RM2.45, up five sen or 2.08%, from its close of RM2.40 yesterday.
