The Borneo Post
Dayang sees record quarterly result in 3Q
MIRI: Dayang Enterprise Holdings Bhd (Dayang) achieved its recordhigh quarterly result in the third quarter of 2014 (3Q14) with RM58 million in profit after tax, representing a year-on-year growth of 81 per cent.
This is a significant milestone for the group as the strong earnings underlined its excellent operational track record by executing work orders to the best of its ability.
Group managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin said he was exceedingly pleased with the results but remained cautious on its near term outlook.
He said the group is confident of maintaining its profits should the company be successful in securing the new EPCC contract going forward.
“We are also delighted to report a 91 per cent y-o-y increase in profit before tax (excluding share of results of associate) to RM63.7million, as a result of the high profit margin contribution from the work orders performed,” he said yesterday.
“It improved strongly to 27 per cent compared to 19 per cent in the corresponding period last year.” This performance came on the back of RM236 million revenue in 3Q14 representing a 38 per cent y-o-y growth, which is also the highest ever in Dayang’s history.
This commendable turnover is largely attributable to the Pan Malaysia hook-up commissioning (HUC) projects for Shell, Murphy and Nippon.
The HUC jobs are now on full swing after the exhaustive preparatory works undertaken since the Group secured those contracts in May, 2013.
Also, the higher level of operating activities contributed to the strong quarterly performance as resources have been fully deployed to carry out the HUC jobs.
Meanwhile, Tengku Yusof also commented its associate, Perdana Petroleum Bhd which contributed RM6.6million in profits to Dayang’s bottom line, representing 11 per cent of its 3Q14 earnings.
“Dayang’s fundamentals remain strongly intact and for the remaining quarter of this year, there is no doubt that the group is on track of achieving another record year,” it added.
“Looking forward, Dayang’s remain positive of the group’s
We are also delighted to report a 91 per cent y-o-y ncrease in profit before tax (excluding share of results of associate) to RM63.7million, as a result of the high profit margin contribution from the work orders performed. Tengku Datuk Yusof Tengku Ahmad Shahruddin, Dayang Enterprise group managing director
long term prospects, thanks to the RM4.2 billion order book which will underpin our earnings visibility until 2018, notwithstanding the declining crude oil prices and uncertainties in the global market.” Dayang continues to participate in tendering for new jobs with a view of replenishing its order book.
Its current tender book remains at RM800 million.
The managing director is also fairly confident that capex spending from the oil companies to continue, especially in maintenance of the aging facilities to remain intact given the need to maintain production.