KUALA LUMPUR (Feb 16): Dayang Enterprise Holdings Bhd returned to the black with a net profit of RM15.6 million in its fourth quarter of financial year 2022 (4QFY2022) from a loss of RM288.5 million last year due to the reversal of impairment loss and net unrealised and realised foreign exchange gain.

Earnings per share also jumped to 1.34 sen from a loss of 24.92 sen in 2021, said the group in a filing on Thursday (Feb 16).

Dayang then announced its single-tier second interim dividend of 1.5 sen per ordinary share to be paid on March 17. Its ex-date is March 2 and the entitlement date is March 3.

The group also reported revenue higher by 11.07% to RM222.3 million from RM200.15 million in the same quarter last financial year (4QFY2021).

The improved earnings for 4QFY2022 was attributed to the reversal of impairment loss on property, plant and equipment of RM7.3 million, offset by additional impairment loss on property, plant and equipment of RM101.6 million and impairment loss on goodwill services of RM219.4 million from 4QFY2021.

The group also made gains from its net realised and unrealised foreign exchange of RM3.6 million for 4QFY2022.

Meanwhile, the increase in revenue was due to more work orders/contracts being awarded from oil majors in 4QFY2022, along with favourable oil prices.

“The vessel utilisation in the current quarter has increased to 54% compared with 38% in the fourth quarter of 2021,” said Dayang in its filing.

In addition, the lower depreciation charges (RM38.5 million versus RM72.6 million) in the current quarter also contributed to the higher gross profit for the quarter under review, it added.

For FY2022 as a whole, Dayang’s net profit has improved to RM124.4 million compared to a loss of RM316.6 million as the group made the reversal of impairment loss of RM7.3 million, as well as an insurance claim of RM11 million received from the Dayang Topaz incident in 2020.

Additionally, its net earnings for 2022 was also due to lower depreciation charge by RM50.3 million to RM104.92 from RM155.2 million in 2021, offset by net realised and unrealised foreign exchange loss of RM11.1 million, impairment loss on goodwill of RM229.3 million and an additional impairment loss on property plant and equipment of RM120.4 million in 2021.

The group recorded a lower accumulated impairment loss for PPE as at December 31, 2022 of RM93.9 million compared with RM137 million as at December 31, 2021 mainly due to the disposal of two vessels during the year ended Dec 31. 2022 and the reversal of an impairment loss on PPE.

Revenue for the year also jumped 47.4% to RM984.18 million from last year’s RM667.73 million as the economy recovered with favourable oil prices which resulted in more work orders/contracts being awarded. Its vessel utilisation also improved 44% to 60% compared with 2021.

“We remain cautiously positive on the prospects as we believe our clients will continue to close the gap of the imbalances while optimising their profitability,” the group said.

"We believe the group may be one of the beneficiaries of sustained activities in the space of MCM (maintenance, construction and modification) and HUC (hook-up and commissioning) leveraging on our strong execution track record.”

Nevertheless, the group will remain prudent in managing business affairs while continuing to deliver outstanding performance.

Dayang’s share price closed higher at seven sen or 4.73% at RM1.55, giving it a market capitalisation of RM1.79 billion.