KUALA LUMPUR (Nov 23): Dayang Enterprise Holdings Bhd saw its net profit for the third quarter ended Sept 30, 2018 (3QFY18) surge more than 43 times to RM48.75 million from RM1.12 million a year ago, mainly due to higher volume of work orders, impairment loss and foreign exchange gains.

Pretax profit during the quarter was RM67.74 million versus RM14.8 million in 3Q17 after taking into account impairment loss of RM5.8 million on PPE (property, plant and equipment) and net realised/unrealised foreign exchange gain of RM14.2 million.

In the corresponding quarter, the impairment loss on PPE and net realised/unrealised foreign exchange losses of RM1.4 million and RM7.9 million respectively, said the company in Bursa filing today.

Earnings per share for the quarter leapt to RM5.05 compared with 12 sen in the previous corresponding quarter.

The oil and gas industry services provider said in its Bursa filing today that quarterly revenue rose 32.5% to RM281.93 million from RM212.8 million in 3QFY17.

For the nine-month period ended Sept 30, 2018 (9MFY18), Dayang saw a net profit of RM66.5 million compared to a net loss of RM89.68 million in the previous corresponding period, while revenue went up by 25% to RM651.99 million against RM521.73 million.   

In a separate filing, Dayang said it has secured a subcontract from Gujurly Inzener (GI) for the provision of facilities maintenance support in Turkmenistan operated by Petronas Carigali (Turkmenistan) Sdn Bhd, for a primary period of three years effective from January 1, 2019.

Dayang said the subcontract was awarded to its wholly-owned subsidiary Dayang Enterprise Sdn Bhd, and will expire on Dec 31, 2021 with an option to extend for a period of one year.

It noted that the value of the contract is based on work orders issued by Petronas Carigali (Turkmenistan) throughout the duration of the contract and shall include any or all other work and services which is generally related to the scope of works in the contract at a fixed schedule of rates.

"The contract will have no effect on the issued capital of the company and is expected to contribute positively to the earnings of the company over the duration of the contract," Dayang said.

Dayang said it is optimistic that the turnaround in its earnings will be sustainable, considering its fairly sizeable order book of RM3 billion, which will last until 2023.

"Notwithstanding the volatility in oil price, we remain upbeat on our company’s future prospects as Dayang has emerged stronger after going through one of the most challenging periods over the past few years," it said.

Besides that, Dayang added that it has also started to look at international expansion to further grow the company.

"We are hopeful that our streamlined operation and strong execution track record will help us win some of the overseas tenders," it said.

"We firmly believe that 2018 will be a real turnaround for the group after experiencing poor results over the past two financial years. Nevertheless, the board will remain vigilant and continue to exercise due care and prudence in the running and administration of the company’s business," Dayang added.

Its shares today closed down 0.5 sen or 0.71% at 70 sen with a market capitalisation of RM675.37 million.