PETALING JAYA: Despite Keyfield International Bhd
swinging into the red in its first quarter ended March 31, 2026 (1Q26), analysts believe the worst may be over for the offshore support vessel operator, supported by improving vessel utilisation, contract rollouts and a strengthening offshore tender pipeline.
TA Research said the group’s weak start to financial year 2026 (FY26) was mainly due to lower vessel utilisation and elevated fuel costs from vessels remaining off hire during the quarter.
Nevertheless, the research house noted that the company expected earnings to recover progressively from the second quarter onwards as more vessels resume operations.
“Management guided that vessel utilisation is expected to progressively improve from 2Q26 onwards, following the commencement of operations for several vessels from mid-April onwards,” it said.
TA Research added that utilisation is expected to recover to about 70% in 2Q26 before improving further to around 80% in 3Q26 and 4Q26.
Meanwhile, AmInvestment Bank Research said Keyfield is expecting a ramp-up in accommodation work boat (AWB) contracts as well as contributions from vessels redeployed to the Middle East following the completion of pre-hire requirements.
“We take comfort that almost all 14 owned vessels are already chartered, which points to a stronger second half of FY26,” the research house said.
AmInvestment Bank also noted that the local tender landscape remained robust, with more jobs emerging from Peninsular Malaysia and Sabah.
Coupled with three incoming newbuild vessels, the research house expects a stronger FY27 to FY28 performance and projects a three-year earnings compound annual growth rate of 16% for the group.
The research house lowered its FY26 earnings forecast by 8% to reflect weaker utilisation in 1Q26, while keeping FY27 to FY28 estimates unchanged as it believes the quarter does not reflect the group’s longer-term earnings trajectory.
It maintained a “buy” call on Keyfield with a target price of RM1.80, citing expectations of a swift earnings recovery.
AmInvestment Bank also pointed out that Keyfield’s net cash position of RM66mil provides flexibility to absorb mobilisation costs, fund vessel expansion plans and sustain dividend payouts.
Analysts noted that Keyfield’s planned acquisition of one DP2 AWB and two 90MT DP2 anchor handling tug supply vessels would further increase exposure to higher-demand and longer-duration charter segments.
For 1Q26, Keyfield posted a core net loss of RM23.3mil versus a core net profit of RM20.5mil a year earlier, as revenue fell 45.6% year-on-year due to lower vessel utilisation.
