KUALA LUMPUR (Aug 23): Dayang Enterprise Holdings Bhd's net profit grew 42% on-year in its second quarter, thanks to higher profit margin and revenue, with lower finance costs and expenses.

As such, net profit for the quarter ended June 30, 2019 grew to RM55.09 million from RM38.85 million, while revenue climbed 12% to RM247.18 million from RM221.28 million, mainly due to higher vessel use and higher work orders received and performed under the topside maintenance contracts, the group said.

Its bottomline for the quarter was also boosted by a reversal of impairment loss on property, plant and equipment of RM2.8 million, which the group booked an impairment loss allowance of RM7.1 million previously.
 
Quarterly earnings per share advanced to 5.71 sen from 4.03 sen in the year-ago quarter.

“We are indeed proud to deliver our best second-quarter revenue and net profit in our long established history,” said Dayang.

“This impressive achievement comes on the back of the robust work orders for the Maintenance, Construction and Modifications Contract (MCM) and Topside Maintenance Services works under the Pan Hook-up and Commissioning Contract (Pan HUC).”

The stronger quarter helped Dayang to more than double its net profit for the half year ended June 30 (1HFY19) to RM50.96 million from RM17.74 million in 1HFY18, which Dayang said was due again to higher profit margin and the reversal of impairment loss on PPE, besides lower finance costs and expenses.

1HFY19 revenue rose 9.06% to RM403.59 million from RM370.06 million on “higher value of work order received and performed” in the period — as contribution from marine charter segment more than doubled year-on-year to RM74.63 million from RM31.1 million in 6MFY18.

“Vessel utilisation [in 2QFY19] also came in stronger at 79% compared with 36% in the first quarter of 2019 and 70% in the second quarter of 2018,” the group said.

Dayang currently has a call-out order book of around RM2.8 billion.

“We are particularly excited with the higher work orders during the quarter which may suggest that the strong job momentum could well continue into the second half of 2019.

“In addition, the synergistic collaboration between Dayang and its subsidiary, Perdana Petroleum has yielded the desired results, giving the combined group an unrivalled competitive advantage as the leading integrated MCM player,” it added.

Dayang shares fell 3 sen or 1.97% to RM1.49 after 15.59 million shares were exchanged, giving it a market capitalisation of RM1.44 billion.