KUALA LUMPUR (Aug 24): Dayang Enterprise Holdings Bhd has returned to the black with a net profit of RM38.85 million for the second quarter ended June 30, 2018 compared to a net loss of RM48.10 million in the same quarter last year, on higher work orders.

This follows a 15.84% increase in revenue to RM221.28 million from RM191.02 million in 2QFY17.

In a filing with Bursa Malaysia today, Dayang said the increase in revenue and net profit during the quarter was mainly due to higher work orders received and performed under the topside maintenance contracts.

"In addition, the profit before tax in the current quarter has also taken into account impairment loss on PPE (property, plant and equipment) of RM7.1 million and net realised/unrealised foreign exchange gain of RM25.7 million whereas impairment loss on PPE and net realised/unrealised foreign exchange losses of RM50.4 million and RM16.5 million respectively were accounted for in the corresponding quarter ended June 30, 2017," Dayang said in the filing.

For the first half of the year, Dayang posted a net profit of RM17.74 million against a net loss of RM90.80 million in the previous year, while revenue jumped 19.8% to RM370.06 million from RM308.93 million.

On its prospects, Dayang is of the view that the worst is over after a relatively uninspiring financial performance in 2016 and 2017, and hopeful that business operations will remain busy over the coming months.

"Barring any unforeseen circumstances, we are optimistic that the turnaround in our earnings will be sustainable, premised on our large order book replenishment of more than RM1 billion for the next five years and bringing our total order book to more than RM3.0 billion which are call out contracts to last until 2023.

"The relatively resilient oil price at above US$70 per barrel for crude Brent will also lend credence to our earnings recovery given the much improved operating environment for oil majors which will directly benefit our business, particularly in the areas of maintenance, construction and modification works and also facilities improvements projects," it said.

It added that the group is still bidding for contracts of about RM600 million, mostly for maintenance contracts within the region and overseas, anticipated to be awarded within the next quarters.

Dayang closed 4 sen or 5.48% up to 77 sen for a market capitalisation of RM742.90 million.