KLSE (MYR): DAYANG (5141)
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GHL000
14 posts
Posted by GHL000 > 2021-09-20 18:29 | Report Abuse
the current quarter ended 30 June 2021, the Group has recorded a higher revenue of RM159.7 million and
loss before tax of RM32.9 million, as compared to revenue of RM84.1 million and a loss before tax of
RM33.5 million in the first quarter of 2021.
The increase in revenue in the current quarter as compared to the immediate preceding quarter is mainly
attributable to higher vessel utilisation at 51% as compared to 20% in the first quarter of 2021, which first
quarter of the year is typically affected by the monsoon weather.
The lower loss before tax of RM32.9 million in the current quarter has taken into account an additional
allowance for impairment loss on PPE of RM27.9 million (see Note A13) and a net realised/unrealised foreign
exchange loss of RM0.1 million, as compared to a net realised/unrealised foreign exchange loss of RM3.2
million recognised in the preceding quarter.
B3. Prospects
The second quarter of 2021 performance has been very challenging as the Group business continued to be
affected by various restrictive Movement Control Order (“MCO”) imposed by the Government of Malaysia to
contain the spread of COVID-19 pandemic. Concurrently, strict adherence to the standard operating
procedures of COVID-19, including the requirement of 14-day quarantine periods for workforce movement
to/from offshore has also resulted in higher operating costs.
However, the vessel utilisation came in stronger at 51%, as compared to 20% in the first quarter of 2021.
Together with ongoing vaccination efforts, this has lent further optimism that the pandemic can be contained
in the coming few months. As such, we believe that the outlook in third quarter of 2021 will improve
considerably as crude oil price has also stabilised at a healthy level which bodes well for the oil and gas
industry. In addition, our order book remains strong at an estimated value of RM2.3 billion, which will ensure
healthy earnings visibility over the next few years.
We will continue to be vigilant and exercise due care and prudence in the running and administration of the
company’s business. We remain confident that our strong execution track record and a healthy balance sheet,
will sustain the Group through this challenging period.