Perdana Petroleum’s low vessel utilisation drags Dayang into the red for 1QFY17
KUALA LUMPUR: The low vessel utilisation of Perdana Petroleum Bhd (Perdana Petroleum) dragged its parent company, Dayang Enterprise Holdings Bhd (Dayang), into the red as the latter posted a loss of RM42.6 million for the first quarter of financial year 2017 (1QFY17).
According to the team over at MIDF Amanah Investment Bank Bhd (MIDF Research), the loss came as a surprise and was largely due to a meagre vessel utilisation rate of 24 per cent from Perdana Petroleum.
The research arm said the figure was a huge decrease from the 58 per cent utilisation rate observed in 4QFY16 and 50 per cent rate in 1QFY16, and had led to total losses from Perdana Petroleum at RM45.9 million.
“The lower than expected utilisation rate was due to some vessels undergoing maintenance and upgrading works, apart from the season monsoon factor,” explained the research arm.
Due to this, MIDF Research trimmed its earnings forecast for Dayang by FY17 and FY18 downwards by 40.5 and 8.35 per cent respectively.
Meanwhile, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) saw a 31 per cent decrease in Dayang’s FY17 earnings to RM44.1 million and a 27 per cent increase in FY18 to RM93.2 million.
These results were derived by factoring in a reduced stake in the loss-making Perdana Petroleum by Dayang who has recently announced that it would take a private placement of up to 10 per cent of the total number of its issued shares.