KUALA LUMPUR (June 23): Dayang Enterprise Holdings Bhd returned to the black in the first quarter ended March 31, 2020 (1QFY20), chalking up a net profit of RM9.33 million compared to a net loss of RM17.15 million in 1QFY19. Quarterly revenue increased to RM172.1 million, up 10% from RM156.41 million previously.

Earnings per share for the quarter stood at 88 sen compared with loss per share of 43 sen a year ago.

The group’s better performance was largely contributed by higher vessel utilisation and higher work orders received and performed under the topside maintenance contracts, the oil and gas (O&G) firm said in its results filing with Bursa Malaysia today.

“The higher vessel utilisation rate of 55% in 1QFY20, compared to 36% in 1QFY19, was largely due to the sustained level of work orders as the synergistic collaboration between Dayang and its subsidiary Perdana Petroleum Bhd continues to work out well.

“We had a relatively strong start in 2020 with a profitable financial performance in the first quarter of 2020, turning around from a loss quarter in the corresponding period last year. This is despite the seasonally weak quarter which is typically affected by the monsoon weather,” it added.

According to Dayang, the Movement Control Order enforced by the government since March 18 has resulted in significant disruptions to its business activities.

The situation was made worse by the shocking plunge in crude oil prices, which had impacted work orders from the group’s clients, as the O&G industry “grappled with the new dynamics under low oil price environment”.

On its order book, which is largely based on call-outs, Dayang said it remains decent at an estimated value of RM4 billion, but cautioned that there is “no certainty that work orders of high values will be issued in the near term”.

In light of this, the group said it will continue to be vigilant and exercise due care and prudence in the running and administration of the group’s business.

“We are confident that our strong execution track record, coupled with our solid balance sheet, will help us to weather this challenging period. This short-term turbulence will not derail our long-term plans to achieve greater heights going forward,” it added.