KUALA LUMPUR (May 23): Dayang Enterprise Holdings Bhd fell into the red in the first quarter ended March 31, 2023 (1QFY2023), posting a net loss of RM15.95 million compared with a net profit of RM13.76 million a year ago.

Losses per share stood at 1.38 sen, compared with earnings per share of 1.19 sen posted in the first quarter ended March 31, 2022 (1QFY2022), according to a bourse filing on Tuesday (May 23).

Meanwhile, revenue for the quarter slumped 29.80% or RM47.72 million to RM112.42 million this quarter, from RM160.14 million in 1QFY2022, due to fewer work contracts being awarded, and lower vessel utilisation, which is typical during the monsoon season.

“Although revenue reduced by [29.8%], gross profit has seen a larger reduction of approximately 76% [to RM10.06 million from RM66.89 million] as a result of higher operating expenditure impacted by inflation, pre-mobilization cost and some vessel maintenance incurred,” the group added.

On its prospects for the remainder of the year, Dayang Enterprise said it had started to mobilise its assets and resources to offshore execution from March as the monsoon season ends.

“In the next quarter, we will continue to work closely with our clients on their planning execution and potential new projects in the space of maintenance, construction and modification (MCM) and hook-up and commissioning (HUC).

As at March 2023, our outstanding estimated call-out contracts is at about RM1.3 billion. We are encouraged by the positive development in the industry.” the group said.

Dayang Enterprise shares closed two sen or 1.46% lower at RM1.35, giving the group a market capitalisation of RM1.56 billion.