Dayang to resume strong growth momentum post GE13, bags Sarawak job

KUCHING: Dayang Enterprise Holdings Bhd (Dayang) is expected to resume its strong growth momentum now that the 13th general election (GE13) has been concluded and smoother contract flows is expected for the group.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a research note yesterday, Dayang recently announced that it had secured a contract worth RM313.6 million from Murphy Sarawak Oil Co Ltd for the provision of hook-up, commissioning (HUC) and topside major maintenance services for the latter’s offshore assets.

“This contract is for the duration of five years, starting from 2013 to 2018, with an optional one year contract extension,” it explained.

Additionally, it highlighted, “In our initiation coverage report, we have conservatively assumed Dayang to secure only RM1 billion worth of contracts in 2013, primarily from Shell Malaysia’s HUC works.

“As such, with the inclusion of this contract win from Murphy, we increase our new orderbook assumption to RM1.5 billion.”

MIDF Research further opined positively that the passing of GE13 and the incumbent government once again securing a five-year ruling mandate, would pave way for smoother contract flows that could sustain the growth momentum of Dayang since the start of the year.

As such, it said, “We are overall bullish on the oil and gas sector and expect Dayang to be one of the key beneficiaries this year.”