KUALA LUMPUR (Oct 28): The sinking of the MV Dayang Topaz vessel is expected to have minimal impact on operations of Dayang Enterprise Holdings Bhd, said Hong Leong Investment Bank (HLIB) Research.

Yesterday, it was reported that the vessel sank after colliding with platform structures as its anchor wire snapped due to strong currents. The ship was carrying 187 crew members, 125 of whom jumped into the sea when the accident happened. The company later reported that two members died, while the rest were rescued.

According to HLIB, Topaz caters to about 20% of maintenance work done by Dayang. The vessel is not in a state of total loss and repairable with damage to the vessel also expected to be fully insured, it said.

The investment bank maintained its "hold" call for the stock with an unchanged target price (TP) of 87 sen.

“We understand that the ship did not capsize; it sank, and there was only damage to the crane and related items. Topaz was already due for dry-docking soon and the ship will be sent for repair along with maintenance services.

"The vessel should be ready for commissioning again after one to two months. In the meantime, Dayang would either deploy Zamrud or one of Perdana Petroliam Bhd’s unutilised vessels to continue its work for Petronas Carigali,” HLIB said in a note.

Meanwhile, on the macro outlook, HLIB said the resurgence of Covid-19 cases and weak oil prices are expected to affect Dayang negatively as it believes that Petroliam Nasional Bhd (Petronas) will continue to underspend on its capital expenditure and operating expenditure.

Shares in Dayang were unchanged at 80 sen at the time of writing today, giving the stock a market capitalisation of RM849.03 million.