KUALA LUMPUR (May 27): Keyfield International Bhd (KL:KEYFIELD), an oil and gas (O&G) services provider listed just last month, reported its net profit more than quadrupled in the first quarter from a year earlier, thanks to higher vessel utilisation and charter rates.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM30.3 million compared to RM7.41 million in 1QFY2023, Keyfield said in an exchange filing. Earnings per share rose to 6.05 sen from 1.48 sen per share. Revenue surged 92% year-on-year to RM106.39 million from RM55.4 million.

The results “will set the tone for the year,” said chief executive officer Datuk Darren Kee Chit Huei. The first quarter is traditionally weaker than other quarters due to monsoon in the South China Sea where Keyfield operates, he noted.

The increase in utilisation rates was due to its own vessels being chartered out earlier in 2024 compared with 2023 to support customer’s offshore activities. The increase in daily rates meanwhile is indicative of the improved market conditions for Keyfield’s vessel chartering business, it said in a statement.

The company now will focus on carrying out the remaining jobs worth RM675 million, of which RM370.9 million is for the rest of this year, Kee said. “This figure is before additional charter projects which we are still bidding for,” Kee said.

“We are well-placed to ride on the upcycle of the market which we operate in, especially with the current shortage of suitable vessels to support offshore activities," he added.

Keyfield also declared its first interim dividend of one sen per share amounting to RM8 million for FY2024, to be paid on June 24.

The company was listed on the Main Market on April 22 after raising RM188.06 million.

Keyfield mainly charters accommodation vessels and provides related onboard services such as accommodation, catering, housekeeping, laundry and medical support services to national O&G corporation Petronas and other contractors in the industry.

More than one-third of the proceeds from the IPO has been earmarked for settlement of balance purchase consideration for 500-passenger barge Blooming Wisdom and another one-third will go towards redeeming cumulative redeemable non-convertible preference shares in Keyfield.

The company plans to also use 18.6% of the proceeds to settle the balance purchase consideration for Helms 1 platform supply vessel, the prospectus showed. The balance will go towards repayment of bank borrowings, fund working capital, and to defray listing expenses.

Shares in Keyfield settled up one sen or 0.42% to RM2.37 on Monday, valuing the group at RM1.9 billion.