Keyfield’s 2023 net profit jumps 115.7pc to RM105.5m

Main Marketbound Keyfield International Bhd’s net profit surged 115.7 per cent to RM105.5 million for the financial year ended Dec 31, 2023, up from RM48 million in the previous year.

Its revenue also increased 82.3 per cent to RM430.4 million compared to RM232.2 million in the previous financial year.

Keyfield attributed this growth to contributions from its self-propelled accommodation workboats and third-party vessels.

In the fourth quarter of 2023, Keyfield recorded a total of 665 chartered days for its own vessels, representing a utilisation rate of 72.3 per cent compared to 447 days in the fourth quarter of 2022, representing a utilisation rate of 69.4 per cent, as well as an increase in the average daily charter rate (DCR) of 16.6 per cent.

“The higher number of chartered days was mainly contributed by ‘Keyfield Lestari’, ‘Blooming Wisdom’ and ‘Keyfield Helms 1’,” it said in a statement.

In the fourth quarter of 2023, the offshore accommodation provider reported that third-party chartered days totalled 540 days, up from 331 days in the fourth quarter of 2022.

“The DCR for third-party vessels increased by 6.2 per cent in the fourth quarter of 2023 compared to the same period in 2022,” it noted.

Based on Keyfield’s enlarged share capital of 800 million ordinary shares post-initial public offering (IPO), the full-year 2023 profit after tax and minority interest gives an earnings per share of 13.2 sen.

At the IPO price of 90 sen, this translates into a price-to-earnings ratio of 6.8 times.

Keyfield is set to be listed on April 22.

etary Fund about a weakening global economy, Ferlito remarked that it is inevitable.

“The fact that people got used to it (subsidies) does not mean it is a good one. It is appropriate to move forward,” he added.

Ferlito said with targeted subsidies in place, prices will increase, at least in the short run. However, they will reflect the actual structure of the economy.

“It will take time for the system to adjust but the sooner we start, the better,” he said.

Economist Dr Geoffrey Williams said cutting fuel subsidies is the only way to achieve a significant impact on the government’s subsidy bill.

Putrajaya spent a total of RM62.11 billion in subsidies last year, according to the Auditor General’s Report.

For 2023, Malaysia has projected a total subsidy bill of about RM81 billion.

“The petrol and diesel subsidies should be cut in stages, beginning with diesel for non-commercial customers. This will have the least impact on the economy and inflation,” said Williams.

He said Malaysians may have to wait until later in the year to see how and when the subsidy for RON95 petrol is removed for the general public.

This may be delayed if oil prices rise due to tensions in the Middle East.

“The targeted subsidies can free up RM5.3 billion to RM9.2 billion for social spending where it is needed. So this is essential,” he said. Williams stressed that the timing will never be right based on growth alone; the government must consider domestic factors and the tight fiscal position.

The government wants to ensure that the people still have enough disposable income.

He said subsidies are unsustainable at current levels, so subsidy rationalisation must begin now.

“If the subsidy rationalisation is done in stages, it will have only a small impact on inflation, which has actually been falling for many months. So, any effect should be minimal and gradual, and the targeted subsidies for low-income groups through the Central Database Hub (Padu) will raise their income and help them cope.”

Putra Business School economic analyst Assoc Prof Dr Ahmed Razman Abdul Latiff said it is important for the government to start managing its fiscal deficit.

He said targeted subsidies will allow the government to channel funds to initiatives that will have a long-term impact.

“The government wants to ensure that the people still have enough disposable income. At the same time, the government can reduce its subsidy expenditure, especially given the potential rise of oil prices due to the Iran-Israel conflict.”

Razman said reducing subsidies will cause inflation to rise.

However, since the current inflation rate is low, the government is willing to take the risk.

Yesterday, Economy Minister Rafizi Ramli reaffirmed Malaysia’s intention to push ahead with plans to reduce petrol subsidies this year to address the fiscal deficit.

He said the government was on track to concentrating its aid on helping the poor.

The minister emphasised the need to carefully manage subsidy reductions, especially with inflation risks.

He also highlighted plans to gradually phase out blanket subsidies for RON95 fuel, which consumed a significant portion of last year’s subsidy budget.

ASSOC PROF DR AHMED RAZMAN ABDUL LATIFF Putra Business School economic analyst