KUALA LUMPUR (Nov 17): Dayang Enterprise Holdings Bhd’s third quarter net profit surged 178.67% to RM52.9 million, from RM18.98 million a year earlier, mainly driven by increased work orders and contracts from oil majors.

Also contributing to the jump in earnings are higher vessel utilisation rates, and a RM7.4 million insurance claim received for an incident involving Dayang Topaz in 2020, the Sarawak-based oil and gas service provider said in a bourse filing.

Earnings per share for the third quarter ended Sept 30, 2022 (3QFY22) rose to 4.57 sen, from 1.64 sen for 3QFY21.

Quarterly revenue climbed 51.16% to RM338.34 million from RM223.84 million, thanks to strong economic recovery from the Covid-19 disruptions in 2021, as well as favourable oil prices.

The group also announced an interim dividend of 1.5 sen, payable on Dec 14.

For the first nine months of FY22, Dayang posted a net profit of RM108.68 million, compared with a net loss of RM30.45 million in the same period of FY21, as revenue grew 62.94% to RM761.89 million, from RM467.58 million.

On prospects, Dayang said most of its resources in the fourth quarter are in the midst of demobilising and in preparation for FY23.

Citing the monsoon season, Dayang said the expectation is that activities relating to the group’s nature of work in the form of maintenance, construction and modification (MCM) and hook-up and commissioning (HUC) would drop, given the safety of its vessels’ personnel.

“During this time, preparation, maintenance, upgrading and planning will be carried out to get ourselves ready for 2023. We work very closely with our client on the look ahead for the 2023 programme.

“At the same time, while the MCM contract, with improved rates, has been extended till the end of 2023, we expect new tenders to be issued imminently,” the group said.

As of September, Dayang’s outstanding estimated call-out contracts is about RM1.58 billion.

Going forward, Dayang expects to participate actively in the tender activities, as the group is of the view that its clients will continue to capitalise on the high oil price environment to increase their productivity and profitability.

“We believe the group will be one of the main beneficiaries for additional activities in the space of MCM and HUC leveraging on our strong execution track record. We will remain prudent in managing business affairs, while continuing to deliver outstanding performance,” it added.

Dayang’s share price ended two sen or 1.59% higher at RM1.28 on Thursday (Nov 17), bringing the group a market capitalisation of RM1.48 billion.