1.5b MCM contract will push up profit next q

18. Prospects

Generally, the offshore support vessels (“OSV”) market in the first three quarters of 2017 has been weak and for the last quarter of 2017, the Board envisages that the Group’s vessel utilization will continue to remain sluggish in view of the impending monsoon. However, going into 2018 it is expected that the Group’s vessel utilization rate will be better than that of 2017 as a substantial number of the Group’s fleet will be earmarked for Dayang’s offshore maintenance and hook-up contracts with various oil majors where activities are already projected to be ramping high.

Sabah EOR announcement wil b within next 43 days

New Saudi king will mess up d Middle East Oil price goin up usd 100 again

https://www.msn.com/en-my/news/world/why-saudi-arabia-and-iran-are-bit...
18/11/2017 15:43

New Saudi king will mess d Middle East Oil price goin yp usd 100 again

https://www.msn.com/en-my/news/world/why-saudi-arabia-and-iran-are-bitter-rivals/ar-BBF6Cyq?li=BBr8Mk9&ocid=MYDEC2016

Now u know hw many enemies u make

U don't simply said Not me though I like to say same

No la don't worry la whole 1.5b umbrella to Dayang

If wat u say can bid tat mean Dayang can bid in d other 4 umbrella No bad oso Total 5b of contract

Umbrella contract to 4 parties mean under tat scope of work umbrella 4 can bid

One MCM umbrella to jz 1 party mean to jz 1 party

Umbrella meaning is d scope of works not d type of contract

Think umbrella meaning under one scope

Jz my 2 cent correct me if wrong

But though d MCM contract value is expected to b 1.5b if oil price is low Petronas wil not sweat its platforms hence wil not nid a lot of MCM thus low work orders issued

Tat mean Dayang no nid to bid to beat Sernegy to d work orders

Oil portion all under Dayang

No don't agreed

Dayang win tis..... Package A or Sarawak Offshore Oil Portion

Oil portion


MCM win. As speculated since the introduction of PETRONAS’ Maintenance, Construction and Modification (MCM) work packages which replace the previous Hook-up and Commissioning (HUC) packages, Dayang has emerged as one of the project winners. Although no definitive value was given to the 5-year Package A or Sarawak Offshore Oil Portion of the MCM works, we believe that the total contract value is worth more than RM1b. The contract is effective from 20 September 2017 to 19 September 2022.

For all OG 0.05 is frm sentiments

Deri hw d whether at platform today? I saw Deepwater Horizon in TV last week so scary

Perdana relisted at least 0.435 No problem

Like to know bot cum or bot ex better?

Verdict

Taking d lowest 0.63 n d highest 0.72 yesterday

As long as Perdana relisted at least 0.435

BOT CUM BETTER

Contra ppl watch oil price Longer term ppl watch Sabah EOR

Hong Leong TP 1.20 so 0.80 no problems

Like to know bot cum or bot ex better?

Follow DPM Sabah EOR announcement wil b within d next 47days

So big q to sell at 0.70 who is tat wat is d story?

Like those good old days

If due to high oil price Petronas go all out to sweat its assets thn MCM value full 1.5b

Deri u r working offshore at d platform?

Jz telling story of extreme to illustrate better

No put in good money for crab

When oil price usd 20 platform is a desert abondance

We maintain Buy with unchanged TP of RM1.20 based on SoP.

Dayang - Waiting for the Better

Author: HLInvest | Publish date: Tue, 10 Oct 2017, 10:29 AM

Highlights

As expected, the company was awarded with Maintenance, Construction & Modification (MCM) Package A from Petronas Carigali on 20th Sept 2017. Contract duration would be for a firm 5 years (Sept 2017- to Sept 2022) with 1 year optional extension.
However, the contract value was not announced as the details of the work scope for the contract is dependent on the final work orders issued (which may vary dependent on market conditions) during the contract period.
Our channel checks and our back-of-the-envelope calculation shows that the portion that Dayang had secured is in the excess of circa RM1bn or higher, which represents a significant boost to its current orderbook of circa RM3bn.
The proposed dividend-in-specie in form of Perdana shares has been approved by shareholders in EGM held on 9th Aug 2017. Completion of the exercise has been postponed from its original target of early Sept 2017 as per circular, as Bursa Malaysia is still determining the pricing of Perdana shares upon share distribution.
We believe that the pricing process is trickier for Perdana as its last traded price was at RM1.55/share, which was way back in 2014. It is understood that the deal would be completed before end of 2017 and it is expected to give Dayang’s shareholders a decent yield from the distribution.
Based on our valuation of RM0.31/share for Perdana, the yield would be at 13% based on latest Dayang share price. We opine that the final value of Perdana share price would be significantly higher due to its steep discount to last traded price and improvement in vessel utilisation.
Overall, 2018 will be a better year for Dayang group as HUC work orders is expected to pick up, backed by RM3bn orderbook.
In addition, we also expect Perdana’s vessel utilisation to improve on the back of higher activities especially in the maintenance segment.
Forecasts
Unchanged.
Risks
Fluctuation in oil price.
Rating
BUY ↔
Completion of incoming corporate exercise represents a catalyst for the company with high dividend yield expected to be generated from distribution of dividend-in-specie. Medium term outlook is positive for the group riding on incoming contracts to be dished out in the sector.
Valuation
We maintain Buy with unchanged TP of RM1.20 based on SoP.

Source: Hong Leong Investment Bank Research - 10 Oct 2017

Now oil price high MCM value oso follow high Good for Dayang

Oil price high higher production higher uses more maintenance If oil price usd 20 platforms left to rot MCM contracts 0 value

Value not known now bcos of oil price If oil price continue to go up Petronas wil sweat its assets as such need more maintenance for those assets versi versa

Those MCM under difference packages No more competitive bidding Jz wait for work orders from Petronas

Dericlock u r so wrong R u sure u in O&G?

Satisfactory

Perdana not yet

Yes wil start at 0.535 but 10,000,000 q to buy 0 selling

Bank shd taken last Perdana price n discount by like 50%

Wow tis may be d reason ppl selling like crazy

battosai123 u margin call whn adjust down tomorrow? Bank no value for Perdana shares?

-0.29 ex 0.535 Dayang tis price possible?

Last 2 hours

OrlandoOIL Tis is d ppl to push Dayang ex to limit up Tuesday

einvest88 belif better sapu Dayang after ex
10/11/2017 16:11

Dayang tomorrow limit up around 0.83 so fast no chance to buy

0.80 new strong support

Dividend worth 0.24 to 0.27

There is no quarrel Dayang is good even very good O&G wit 4.5b contracts

Jz not same view like split 45 55 on either to buy now or ex tomorrow

In a week time after ex everybody wil buy Dayang n oso Perdana cos oil price fly

Jz c Hibiscus d very very very good O&G n all d other lousy O&G oso fly

HaHa Hibiscus goin to go higher thn Dayang 6 figures profit getting bigger n bigger