KUALA LUMPUR (Feb 22): Dayang Enterprise Holdings Bhd returned to the black in its financial year ended Dec 31, 2018, after its final quarter of the year raked in a net profit of RM97.72 million compared to a net loss of RM55.21 million in the previous corresponding quarter, on higher work orders received and performed under its topside maintenance contracts.  

In line with this, the group recorded earnings per share of 10.13 sen compared to a loss per share of 5.72 sen in 4QFY17, its quarterly results announcement today showed.

Quarterly revenue jumped 64.9% to a record high of RM285.65 million from RM173.26 million in the previous year, it said, despite the fourth quarter being a typically weak quarter due to the monsoon weather.

Notably, it said  offshore activities were ramped up and work continued to be issued to Dayang under time write (unit rates) and lump sum work orders.

"This remarkable achievement came on the back of the robust work orders issued for the PCSB Maintenance, Construction and Modifications Contract (MCM) and Topside Maintenance Services works under the Pan Hook-up and Commissioning Contract (Pan HUC) as well as the newly minted Pan MCM Contracts which were rolled out in the fourth quarter.

"As a result of the strong operational performance in the fourth quarter of 2018, Dayang also recorded one of the highest quarterly profit after tax in our history. This is largely attributable to better cost control, improved efficiency and streamlined project management. It is also evidently positive that vessel utilisation came in stronger at 73% in the fourth quarter, compared to a utilisation rate of 51% for the fourth quarter a year ago," it said.

"Our fleet utilisation has been gradually improving since the first quarter of 2018 when it was as low as 27%. We are particularly delighted to note that the synergistic collaboration between Dayang and its subsidiary, Perdana Petroleum has indeed worked out satisfactorily and this should reinforce our position to be the leading integrated MCM player," it added.

For the full financial year 2018 (FY18), Dayang recorded a net profit of RM164.22 million compared to a net loss of RM144.89 million, while revenue rose 34.9% to RM937.64 million from RM694.99 million in FY17.

Dayang is optimistic that its strong earnings trend will be sustainable considering its "fairly sizeable" order book of RM3 billion, which would last them until 2023.

"Notwithstanding the volatility in oil price, we remain upbeat on the company’s future prospects as Dayang has emerged stronger after going through one of the most challenging periods over the past few years. We are confident that our balance sheet will continue to be strengthened as the impressive financial performance in 2018 has clearly demonstrated," it added.

Dayang shares rose 0.5 sen or 0.63% to close at 79.5 sen today, giving it a market value of RM767.02 million.