KUALA LUMPUR (May 21): Dayang Enterprise Holdings Bhd (KL:DAYANG) expects stronger financial and operational performance in the coming quarters after posting a 74.8% jump in first-quarter earnings, supported by higher vessel utilisation and more intensive offshore activity execution.

The oil and gas services provider said offshore activities are expected to remain active through early fourth quarter ahead of the monsoon season, supporting revenue visibility and operational momentum.

Net profit for the quarter ended March 31, 2026 (1QFY2026) rose to RM21.52 million from RM12.31 million a year earlier, despite revenue declining 14% to RM132.35 million from RM153.82 million.

The higher earnings were mainly attributed to improved margins following the completion of projects under its hook-up and commissioning (HUC) contracts, which carried lower operating costs and reduced reliance on third-party vessel chartering expenses.

The decline in revenue was primarily due to fewer work orders and contracts executed under its topside maintenance segment.

Still, the group recorded a marked improvement in vessel utilisation rates, which rose to 45% from 26% a year earlier.

Dayang said the higher utilisation was driven mainly by increased deployment of its anchor handling tug supply (AHTS) vessels, supported by project continuity and spillover work from late 2025, as well as sustained demand from ongoing offshore campaigns that extended vessel engagements into the first quarter of 2026.

However, utilisation of its accommodation work barges remained affected by monsoon-related disruptions and cost optimisation measures undertaken to mitigate inflationary pressures stemming from geopolitical tensions in the Middle East.

The group declared a first interim dividend of seven sen per share, unchanged from a year earlier. The entitlement date is set for June 10.

As at March 2026, Dayang’s outstanding estimated call-out contracts stood at RM4.78 billion.

On outlook, the group said it remains mindful of ongoing geopolitical uncertainties and potential supply chain disruptions, but continues to actively pursue tender opportunities while selectively exploring adjacent business segments to support medium-term growth.

“Management remains focused on disciplined capital allocation, operational efficiency and prudent risk management, with the objective of delivering sustainable returns to shareholders,” it said.

Shares of Dayang closed six sen or 3.2% lower at RM1.80 on Thursday, giving the group a market capitalisation of RM2.08 billion. The stock has risen 7.8% year to date.