PETALING JAYA: Keyfield International Bhd
’s earnings outlook is turning more constructive for financial year 2026 (FY26), underpinned by a fresh batch of charter wins that analysts say should support a recovery in vessel utilisation after a softer FY25, although near-term earnings are still expected to remain below the company’s peak performance seen in FY24.
AmInvestment Bank said the offshore support vessel (OSV) player’s latest eight charter contracts reinforce its recovery thesis, with utilisation expected to climb to 70% in FY26 from weaker levels previously, supported by stronger deployment across domestic and Middle East markets.
The research house noted that Keyfield had secured eight new chartering contracts covering seven accommodation work boats (AWBs) and one anchor handling tug supply (AHTS) vessel, with firm contract values totalling RM162mil and optional extensions worth another RM84mil, lifting potential total contract value to RM246mil.
“The latest contract wins support our recovery thesis, reinforcing our expectation for utilisation to recover to 70% in forecast FY26 from weaker levels in FY25,” AmInvestment said.
The firm’s contract alone represents about 35% of AmInvestment’s FY26 revenue forecast, providing stronger earnings visibility over the coming year.
Kenanga Research similarly maintained a positive stance, saying the latest awards were largely within expectations and consistent with its earnings assumptions.
It estimated average daily charter rates or DCRs at about RM99,180 per day for AWBs and RM45,000 per day for the AHTS vessel, broadly in line with its FY26 forecast of RM100,000 daily for the fleet.
Keyfield announced that the charter durations range from two months to one year, with extension options of one month to one year, while most of the contracts are scheduled to commence in the first half of FY26.
Five of the AWB jobs were secured domestically, including two from PETRONAS Carigali, while two contracts were awarded in the Middle East and one in Thailand, reflecting the company’s growing geographical diversification.
Following the latest wins, Keyfield now has six vessels deployed in the Middle East and five operating domestically, leaving only three vessels uncontracted, according to AmInvestment.
This stronger deployment is significant because analysts believe Malaysia’s tightening OSV supply is increasingly favouring younger fleets such as Keyfield’s.
AmInvestment said this ties directly to its view that local fleet renewal is reaching an inflection point, with peers disposing six to seven vessels while only three newbuilds are entering the market, tightening effective supply and reducing idling risks for modern operators.
It added that Keyfield’s relatively young fleet positions it favourably in PETRONAS tenders, particularly in the AWB segment where technical specifications increasingly matter. Despite differing earnings assumptions, both houses maintained bullish calls.
AmInvestment retained its “buy” recommendation with a target price of RM1.80, saying the stock is trading cheaply at seven times FY27 earnings with an attractive 6% dividend yield.
Kenanga maintained its “outperform” call and RM1.75 target price, adding that Keyfield’s disciplined vessel acquisitions during the Covid-19 downturn and capacity to sustain payout ratios above 40% remain key attractions for investors.
