Dayang reaches major milestone in its international expansion
KOTA KINABALU: Dayang Enterprise Holdings Bhd (Dayang) through its wholly owned subsidiary, Dayang Enterprise Sdn Bhd, has secured a significant breakthrough by winning its maiden overseas contract in Turkmenistan.
The group has been awarded the contract for the provision of facilities maintenance support for Petronas Carigali (Turkmenistan) Sdn Bhd which will be undertaken with its local partner, Gujurly Inzener via a joint venture company.
The successful overseas penetration into Turkmenistan is envisage to herald better days for Dayang Group in the future, the company said in its press release on Friday.
The contract will cover a three-year period effective from January 1, 2019 with an option to extend for a period of one year, and this is expected to contribute materially to Dayang’s profitability which is on the verge of a strong turn around after a lackluster performance over the past two years due to the severe downturn in the oil and gas industry.
Commenting on the major feat, group managing director Datuk Yusof Tengku Ahmad Shahruddin said: “This contract win is a significant milestone for Dayang Group to bring the company to greater heights by leveraging on our undisputed market leading expertise in topside major structural maintenance and hook-up commissioning and EPCC services.
“Dayang is fairly confident that this is only the beginning of its international expansion which was envisaged to be a strong earnings contributor to the group going forward.”
He said strong execution track record throughout the years with various oil majors in Malaysia has lent credence to the company’s international foray, apart from having a close working relationship with Petronas since 1991 which speaks volume of its excellent delivery.
Dayang looked forward this Turkmenistan contract to serve as a springboard for further expansion of its geographical presence.
As at September 30, 2018, Dayang’s outstanding order book stands at RM3.1 billion which will underpin clear earnings visibility at least over the next three years.
Its latest 3Q18 results have marked its strongest quarterly profits in recent years, and this has only been contributed from work orders in Malaysia.