Dayang expects recovery on higher oil prices

KUALA LUMPUR: Dayang Enterprise Holdings Bhd, an oil and gas services company, says its revenue and earnings tumbled in the last quarter as the Covid-19 pandemic resulted in slower work orders and higher operating cost.

The company predicted a “healthier” year for the industry in 2021, based on the higher price of crude oil and the vaccine rollout.

“Going forward, we are of the opinion that the outlook of the company as well as oil and gas industry will be healthier in 2021 on the premises that crude oil price would remain at current levels, which are reasonable to incite oil majors to undertake planned capital expenditure,” Dayang said in a filing with Bursa Malaysia yesterday.

“We also expect that the economic activities would be back to normal with the inoculation vaccine programme by the government,” it added.

The company said its outstanding on call order book, valued of Rm2.7bil, would provide strong earnings visibility “over the next few years.”

Dayang posted a net profit of Rm13.1mil in the last quarter ended Dec 31 compared with Rm78.2mil made a year ago.

The company said its vessel utilisation rate dropped to 44% compared with 62% in the third quarter.

“The relatively low vessel utilisation is partly due to lagged effects of oil majors’ capex reduction in addition to the adverse monsoon weather,” it said.

Revenue declined 44% to Rm158.2mil from Rm285mil previously. For the full year, net profit was Rm57.6mil, or 5.4 sen a share.