KUALA LUMPUR (Feb 20): Dayang Enterprise Holdings Bhd (KL:DAYANG) posted an 82.1% fall in net profit for the fourth quarter, dragged by foreign exchange (forex) loss and the absence of a reversal of impairment loss.

Net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) fell to RM16.81 million from RM93.79 million a year earlier, according to the Sarawak-based oil and gas (O&G) services provider’s bourse filing on Thursday.

The lower bottomline was due to Dayang booking a forex loss of RM29.6 million versus a forex gain of RM7.58 million in 4QFY2023 — a negative forex impact of RM37.17 million. Further, the group recognised a reversal of impairment loss of RM41.7 million in 4QFY2023.

Quarterly revenue slipped 9.8% year-on-year to RM316.68 million from RM351.08 million. Dayang Enterprise attributed the lower revenue to the monsoon season. It said vessel utilisation rate dropped to 48% from 55%.

A final dividend of seven sen per share was declared, payable on March 17. This brings total dividend payout for FY2024 to 10 sen per share versus 4.5 sen per share for the previous year.

Despite the decline in 4Q earnings, Dayang Enterprise's full-year net profit still stood at a record high RM311.09 million, up 42.1% from RM218.98 million in FY2023.

Revenue rose 31.9% to RM1.47 billion versus RM1.11 billion previously.

Dayang said the group anticipates robust activity in the O&G industry in FY2025, primarily driven by expectations of global and domestic economic growth which it said should support stable crude oil prices.  

“With estimated call-out contract value of about RM5.2 billion in the next five years, the group will continue to enhance productivity and improve efficiency in the execution of the contracts while actively participating in new tender opportunities,” the group said.

“We will remain prudent in managing business affairs while continuing to deliver outstanding performance,” it added.

Shares in Dayang ended one sen or 0.5% lower at RM1.99, valuing the group at RM2.3 billion.