KUCHING: Analysts saw massive improvements in activity levels at Dayang Enterprise Holdings Bhd’s (Dayang) operations following better numbers for its third quarter of financial year 2017 (3QFY17).
According to MIDF Amanah Investment Bank Bhd (MIDF Research) in a note yesterday, Dayang’s activity levels are improving as evidenced from a rise in revenue of 4.5 per cent year on year (y-o-y).
It said vessel utilisation rates and higher work orders are being seen due to more stable and rising crude oil prices – in particular for the hook-up and commissioning works, topside maintenance services and engineering procurement construction and commissioning works.
“The company’s utilisation rates of its 25 offshore support vessels are improving,” it added in the note yesterday. “Utilisation rates for 3QFY17 was above 75 per cent – higher than regional average – compared to only 44 per cent in 2QFY17.”
To note, its average fleet utilisation rate for FY17 stands at 53 per cent.
“Inclusive of the newly secured contract, Dayang’s current orderbook currently stands at more than RM3 billion lasting through into 2022. We are in agreement with the company’s optimism of a busy FY18.”
This was on the back of Dayang’s 3QFY17 reported profit breaking even at RM0.12 million. Excluding forex losses and impairment losses on receivables, Dayang’s normalised 3QFY17 earnings stood at RM9.5 million.
MIDF Research said the company’s normalised cumulative 9MFY17 earnings excluding impairments on personal protective equipment (PPE), impairment losses on receivables and forex losses amounted to minus RM44.3 million.
“This, in our opinion, represents a huge improvement compared to the large losses incurred previously,” it opined. “Moving forward, with the improvements in activity levels coupled with the relisting of Perdana Petroleum Bhd, the company will be in a better financial position.”