Dayang returns to black in 2Q on reversal of impairment loss

KUALA LUMPUR (Aug 18): Dayang Enterprise Holdings Bhd returned to the black in the second quarter ended June 30, 2022 (2QFY222), with a net profit of RM42.02 million versus a net loss of RM21.89 million a year earlier.

This was due to a reversal of impairment loss on trade receivables of RM1.4 million, as well as lower depreciation charge by RM4.1 million, as compared to additional impairment loss on property, plant and equipment of RM27.9 million previously.

The Sarawak-based oil and gas services provider recorded earnings per share of 3.63 sen against loss per share of 1.89 sen previously, its filing with Bursa Malaysia showed.

Dayang’s quarterly revenue jumped 64.95% to RM263.41 million, from RM159.69 million a year earlier, mainly attributable to the economic recovery after the Covid-19 lockdown, as well as rising oil prices.

The group said vessel utilisation during the quarter increased to 66% (from 50% a year ago), and there was also more work orders or contracts awarded by oil majors.

Cumulatively, the group registered a net profit of RM55.78 million for the first half ended June 30 (1HFY22), against a net loss of RM49.43 million for the previous year's January-June period. First-half revenue soared 73.76% to RM423.545 million, from RM243.75 million.

On prospects, Dayang said it is experiencing higher call ups on work orders from its clients. to better improve their production capabilities and activities from an estimated call-out contract at about RM1.74 billion.

“We expect similar volume for the third quarter of this year, as momentum to capitalise on better oil price remains.

“Barring any drastic changes to the oil price, activities are likely to continue into the next year at an elevated level,” it added.

Dayang’s share price, which has risen 17.86% year-to-date, settled at 99 sen on Thursday (Aug 18). At the closing price, the group is valued at RM1.14 billion.