KUALA LUMPUR (Feb 22): Dayang Enterprise Holdings Bhd’s net profit rose sixfold in the fourth quarter ended Dec 31, 2023 (4QFY2023) to RM93.79 million from RM12.52 million a year ago, continuing its rebound for the third consecutive quarter on improved margins.

According to the upstream oil and gas services outfit, it also saw a huge lift from reversal of impairment of RM41.7 million, revision of useful life of its vessel and forex gains of RM7.6 million.

Quarterly earnings per share rose to 8.1 sen, from 1.08 sen in 4QFY2022. The group posted a dividend of 1.5 sen per share, bringing its full-year dividend to three sen per share, unchanged from last year.

Revenue rose 57.93% to RM351.08 million, from RM222.3 million, as it continued to see job orders despite the monsoon season, adding to the improved daily charter rates. The group has chartered more third-party vessels this year.

Quarter-on-quarter, Dayang’s net profit rose 22.8% from RM76.38 million or 6.6 sen per share, as revenue rose a marginal 2.13% from RM343.76 million.

For the full year ended Dec 31, 2023 (FY2023), Dayang’s net profit rose 80.6% to RM218.92 million or 18.9 sen per share, from RM121.2 million or 10.47 sen per share.

Full-year revenue rose 13.09% to a record high of RM1.11 billion, from RM984.18 million.

It was also the best bottom line for the group since FY2019, when it recorded net profit of RM236.28 million on revenue of RM1.05 billion.

Dayang said it had outstanding estimated call-out contracts of RM1.9 billion as at December 2023.

“During this period, we focused on the planning and strategies for upcoming 2024 executions, namely our ‘maintenance, construction and modification’ (MCM), ‘hook-up and commissioning’ (HUC) and the newly secured Asset Integrity Findings (AIF) projects. Our offshore service vessels (OSV) fleet also underwent routine maintenance and renewal of approvals in preparation for a busy 2024,” it said.

Dayang shares closed unchanged at RM2.23, valuing the group at RM2.58 billion. The group, which is 24.22%-owned by Sarawak-based Naim Holdings Bhd, has seen its shares climb by 39% this year. At its last close, the group traded at price-earnings ratio of 11.8 times, with a dividend yield of 1.31%.