Dayang Enterprise Holdings Bhd posted a net profit of RM131.44 million in the second quarter ended June 30, 2024 from RM64.69 million a year earlier on higher vessel utilisation rates and improved daily charter rates.

KUALA LUMPUR (Aug 22): Sarawak-based oil and gas (O&G) services firm Dayang Enterprise Holdings Bhd's (KL:DAYANG) net profit more than doubled to RM131.44 million in the second quarter ended June 30, 2024 (2QFY2024) from RM64.69 million a year earlier, on higher vessel utilisation rates and improved daily charter rates.

It also recorded a net foreign exchange (forex) gain of RM900,000 in the current quarter compared with a net forex loss of RM18.7 million in 2QFY2023.

This resulted in a higher earnings per share of 11.35 sen for 2QFY2024 compared with 5.59 sen for 2QFY2023.

Revenue for the quarter rose 49.1% to RM455.84 million from RM305.73 million a year ago, on higher vessel utilisation rates of 91% in the current quarter compared with 72% in 2QFY2023.

"The shortage of offshore support vessels for offshore production and operations activities continue to be the main reason for higher demand and improved daily charter rates for both own and third-party vessels. In addition, more work orders/contracts being awarded from oil majors received under topside maintenance contracts also contributed to higher revenue generated," said Dayang in a filing with Bursa Malaysia on Thursday.

The group also declared a first interim dividend of three sen per share, amounting to RM34.7 million, for the financial year ending Dec 31, 2024 (FY2024), payable on Sept 18.

The strong quarterly performance lifted the group's net profit for the first six months ended June 30, 2024 (1HFY2024) to RM159.34 million, more than quadrupling from RM48.75 million a year earlier, while revenue jumped 68.1% to RM702.96 million from RM418.15 million.

Dayang said the 2QFY2024 performance reflects the robust activities in the maintenance, construction and modification (MCM) and hook-up and commissioning (HUC) projects, coupled with higher vessel utilisation rates.

"We are confident that we can sustain the similar performance in 3QFY2024 given the overall industry optimism supported by stable crude oil price. For FY2024, the earnings visibility will remain fairly strong with an outstanding estimated call-out contracts of about RM1.39 billion.

"Moving forward, we continue to wait for the results of the new umbrella contracts for MCM and HUC. We will remain prudent in managing our business affairs while continuing to deliver outstanding performance," it added.

Shares of Dayang closed 5.45% or 15 sen lower at RM2.60 on Thursday, valuing the group at RM3.01 billion. The stock has gained 62.5% year-to-date.