Dayang Enterprise earnings down in Q3

PETALING JAYA: Dayang Enterprise Holdings Bhd’s net profit slumped 57.9% to RM36.17 million for the third quarter ended Sept 30, 2016 versus RM85.95 million in the previous corresponding period, mainly due to the absence of fair value gain from the remeasurement of equity interest held in an associate, which was recorded in the same period last year.

Revenue rose 5.8% from RM192.42 million to RM203.63 million for the quarter under review.

Dayang Enterprise was also affected by the amortisation expenses of intangible assets amounting to RM4.3 million.

In a filing with the stock exchange, the oil and gas firm said the improvement of oil price to about US$50 per barrel currently brings some reprieve to the O&G sector, but stressed that oil majors definitely have to address the problems of corrosion on oil and gas assets in order to maintain asset integrity and operability, to sustain or even enhance production.

Dayang Enterprise is optimistic that maintenance activities for the oil and gas industry will still be resilient and the longer term prospects are still intact considering the group’s healthy order book estimated at around RM3 billion to last at least until 2018 and an outstanding tender book of about RM4 billion.

Its nine-month net profit dropped 95% from RM155.69 million to RM7.84 million on the back of an 8.6% drop in revenue from RM556.9 million to RM509.04 million.