KUALA LUMPUR (Nov 21): Oil and gas services provider Dayang Enterprise Holdings Bhd (KL:DAYANG) said it will continue to deliver outstanding performance after posting a record high net profit for its third quarter, which surged 76.67% year-on-year.

The Sarawak-based group made a net profit of RM134.94 million for the third quarter ended Sept 30, 2024 (3QFY2024) compared with RM76.38 million in 3QFY2023, on higher vessel utilisation and improved daily charter rates for both its vessels and third-party ones amid a shortage of vessels for support vessels for offshore production and operation activities.

A favourable foreign exchange rate from the strengthening of the ringgit against the US dollar also lifted its earnings, the group said in a bourse filing.

Revenue for 3QFY2024 jumped 30.48% to RM448.51 million from RM343.76 million, which was also attributed to more work contracts being awarded by oil majors received under its topside maintenance business, besides the stronger for offshore support vessels. No dividend was declared.

For the first nine months of FY2024, the group's net profit more than doubled to RM294.28 million from RM125.13 million in the corresponding three months in FY2023, exceeding FY2023's RM218.92 million net profit. Revenue jumped 51.13% to RM1.15 billion — again surpassing FY2023’s total revenue of RM1.11 billion — from RM761.91 million.  

Vessel utilisation rates improved to 76% during the nine months under review, from 60% in the same period last year, it added.

Dayang said it had secured three new contracts for a primary period of five years recently, with an option to extend for another five years (5+3+2). The estimated value of these call-out contracts is RM4 billion for the initial five years, raising its existing estimated call-out contracts to RM5.3 billion, it said.

"We will continue to participate in new tender activities and with a good execution track record, we believe we [will] be able to secure more tenders in the future," Dayang said. "We will remain prudent in managing business affairs while continuing to deliver outstanding performance," it added.

Dayang shares dipped two sen or 0.91% to close at RM2.18 on Thursday, valuing the company at RM2.52 billion. Year to date, the stock has gained over 36%.