Dayang En­ter­prise earn­ings down in Q3

The Sun (Malaysia) - - SUNBIZ -

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.

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