KUALA LUMPUR (Nov 23): Dayang Enterprise Holdings Bhd posted its best quarterly net profit in about three years after the integrated oil and gas service provider logged a net profit of RM76.38 million for its third quarter ended Sept 30, 2023 (3QFY2023), compared to RM52.90 million in the same quarter last year.

The improved financial performance was achieved on the back of better margins from vessel chartering and a much lower other expenses attributed by net realised/unrealised foreign exchange loss exposure, the group's bourse filing on Thursday showed. The last time the group recorded a net profit around this level was in the fourth quarter of FY2019, when its net earnings came in at RM78.23 million.

Quarterly revenue rose 1.6% to RM343.76 million against RM338.34 million, underpinned by improved daily charter rates (DCR) of vessels and more work order or contracts being awarded by oil majors received under topside maintenance contracts.

Hence, earnings per share for 3QFY2023 rose to 6.60 sen from 4.57 sen. The group also declared a single tier dividend of 1.5 sen per share, to be paid on Dec 20.

For the first nine months of FY2023, the group's net profit rose 15.13% to RM125.13 million from RM108.68 million in the corresponding period in FY2022, as it saw higher utilisation rates for vessels with better margins. Revenue, however, was little changed at RM761.91 million compared with RM761.89 million previously.

For the fourth quarter of FY2023, the group is expecting lower activities as the monsoon season kicks in, saying its emphasis is on the safety of its offshore crew and assets.

“During this period, we will be working closely with our clients to plan for future activities to be undertaken in 2024. As at September 2023, our outstanding estimated call-out contracts stand at about RM950 million.

“Moving forward, we are in the midst of tendering for contracts that we normally undertake upon expiry of various existing contracts. We will remain prudent in managing our business affairs while continuing to deliver outstanding performance,” said Dayang.

Shares in Dayang closed three sen or 1.65% lower at RM1.79 on Thursday, giving the group a market capitalisation of RM2.07 billion.

Year to date, the stock has soared 35.61%.