KUALA LUMPUR (Aug 20): Shares of Oil and gas sector service provider Daya Materials Bhd jumped 5.26% in early trade today after its net profit soared 88% to RM8.77 million or 0.53 sen per share for the second quarter ended June 30, 2015 (2QFY15), from RM4.68 million or 0.34 sen per share a year earlier, due to improvement in profit to better downstream sales, and the lower cost structure in the offshore/upstream business.

At 9.20am, Daya Materials rose half a sen to 10 sen with 591,000 shares traded.

The better profit was helped by an 11% increase in revenue to RM193.18 million for the quarter, from RM174.09 million in the previous year.

For the six months to June 30, Daya’s (fundamental: 0.55; valuation: 0.9) net profit jumped 51% to RM8.51 million, from RM5.62 million in the corresponding period last year; while revenue rose 19% to RM359.95 million, from RM303.40 million.

For its O&G segment, Daya said its business will largely depend on vessel utilisation and the timing of its proposed vessel purchase, while future vessel utilisation will depend on the actual deployment of its main European client during the summer months, the availability of spot business during winter months and overall offshore environment.

For its downstream sector, the group is in the midst of restructuring our operations, with a view of further strengthening our management team. For the year as a whole, the low oil price and continued uncertainties in the sector will remain the biggest challenge for all industry participants.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)