KUALA LUMPUR (Aug 21): Dayang Enterprise Holdings Bhd suffered a net loss of RM985,000 or 0.09 sen per share for the second quarter ended June 30, 2020 (2QFY20), hit by lower vessel utilisation and higher costs arising from the Covid-19 pandemic.
The lower vessel utilisation in its 60%-subsidiary Perdana Petroleum Bhd at 52%, from 55% in 1QFY20, was caused by delayed work orders due to the Movement Control Order, Dayang said in its stock exchange filing.
Meanwhile, the higher costs quarter-on-quarter came as it adhered to the standard operating procedures to combat Covid-19, it added.
For 1QFY20, Dayang posted a net profit of at RM9.33 million or 0.88 sen per share.
Quarterly revenue slid 0.65% to RM170.95 million from RM172.06 million in 1QFY20, mainly due to the lower vessel utilisation in the period, the group said.
On a year-on-year basis, Dayang’s 2QFY20 loss compares with a net profit of RM55.09 million or 5.71 sen per share in 2QFY19. Revenue was down 27.94% from RM247.18 million.
This, it said, was because the vessel utilisation rate came from a high base of 81%, added with lower work orders received and performed under topside management contracts due to the MCO disruption.
For the six-month period ended June, Dayang’s net profit fell 83.63% to RM8.34 million, from RM50.96 million a year earlier. Revenue fell 15% to RM343 million from RM403.59 million.
On prospects, Dayang said strict adherence to the SOPs to combat Covid-19 has resulted in higher operating costs. This is combined with lesser activities executed in the quarter.
“Looking ahead, we believe that the outlook in the second half of 2020 will improve considerably, as crude oil price has also stabilised at a healthy level, which bodes well for the oil and gas industry.
“In addition, our order book remains strong at an estimated value of RM3.8 billion, which will ensure healthy earnings visibility over the next few years,” it said.
Shares of Dayang Enterprise slid 3 sen or 2.5% today to close at RM1.17, valuing the group at RM1.24 billion.