Major offshore deals boost Dayang’s quarterly financial performance

KUCHING: The commencement of works for recently secured major offshore hook-up and commissioning (HUC) contracts has given a big lift to Dayang Enter–prise Holdings Bhd’s latest results.

In the fourth quarter to Dec 31 last year (4Q-2013), group’s pre-tax profit surged to RM30mil from RM18.8mil in 4Q-2012, as revenue more than doubled to RM192.4mil from RM84.5mil.

“The higher revenue is mainly due to higher value of work orders received and performed for the HUC contracts awarded in May 2013,” Dayang said in explanatory notes to its latest financials.

These contracts were from Sarawak Shell Bhd/Sabah Shell Petroleum Compnay Ltd worth over RM2bil, Murphy Sarawak Oil Co Ltd (RM313mil), Petronas Carigali Sdn Bhd and JX Nippon Oil and Gas Exploration (Malaysian) Bhd.

For the full financial period ended last year, the group posted strong growth in pre-tax profit to RM174.7mil from RM128.2mil in preceding fiscal year as revenue expanded by 40% to RM563.4mil from RM401.2mil.

Earnings per share rose to 18.07 sen from 12.28 sen.

“The growing turnover is benefitting from higher fleet utilisation and higher revenue from the new HUC contracts as well as from major topside maintenance service deals,” the company added.

About 8% of the Dayang’s pre-tax profit was contributed by its associate Perdana Petroleum Bhd.

On prospects for this year, the company was optimistic on the outlook for the domestic oil and gas sector.

“We have taken delivery of a new workboat MV Dayang Opal, which will enhance earnings for our marine services business.

“Adding to this, the board of directors is also optimistic that with better outlook in marine chartering, Perdana Petroleum would continue to register significant improvements this year,” it added.

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