KUALA LUMPUR (May 15): Keyfield International Bhd (KL:KEYFIELD)’s net profit fell 31.7% for the first quarter ended March 31, 2025 (1QFY2025) to RM20.68 million from RM30.3 million, dragged by lower fleet utilisation rates, increased off-hire costs and maintenance fees.

In a bourse filing, the offshore support vessel provider said the first quarter of each year is traditionally its weakest quarter due to seasonal monsoon, and so the majority of its offshore activities, especially maintenance, are carried out. This quarter was no difference, as it had conducted additional maintenance work on vessels during off-hire periods to ensure readiness for the next chartering cycle. 

Revenue for the quarter fell 18.5% to RM86.75 million from RM106.39 million, with fleet utilisation dropping to 44.1% in 1QFY2025 from 67.1% in the same period last year.

This was because many charter projects for 2025 had been delayed and started later in the year as customers extended charter projects to complete offshore work before the end of 2024.

In addition, nearly half of its 14-vessel fleet was unavailable for charter for extended periods in 1Q. This was because four of them had to undergo scheduled five-year dry-docking for special surveys, which is an industry requirement, while another two were being readied for operations. Delays from external equipment suppliers and shipyard equipment breakdowns further extended the days needed for its vessels' maintenance.

The group declared a dividend of one sen per share for 1QFY2025, unchanged from the previous year, to be paid on June 13.

Keyfield said it is cautiously optimistic for FY2025, underpinned by strategic fleet expansion and international diversification. It said its vessel expansion strategy, launched in 2022 and recalibrated to align vessel capabilities with market demand, continues to perform effectively.

While offshore activities in Malaysia remain a driver for its business, the group is gradually reducing its reliance on domestic oil and gas projects to avoid dependence on one segment of customers.

Recent international contracts, including power cable-laying in Saudi Arabia, are opening new growth avenues, it said.

It would also continue to pursue the acquisition of suitable vessels to support expansion in both existing and new markets, underpinned by its robust balance sheet with zero-net gearing, it added.

Its order book now stands at RM446.7 million, of which RM283.5 million is to be realised in FY2025.

Keyfield shares were down five sen or 2.6% at RM1.91, valuing the company at RM1.54 billion. Year-to-date, the stock has fallen 12.4%.