KUALA LUMPUR (Aug 20): Dayang Enterprise Holdings Bhd (KL:DAYANG) said it expects offshore activities to remain firm for the rest of the year, after the oil and gas services provider’s net profit more than halved in the second quarter on fewer work orders, lower vessel utilisation and weaker chartering income.
Demand for offshore maintenance, construction and support services is supported by sustained vessel utilisation and a relatively stable crude oil price environment, the company said in a bourse filing on Thursday.
Net profit for the three months ended June 30, 2026 (2QFY2026) fell 57.2% to RM32.84 million from RM76.64 million in the same quarter a year earlier.
Revenue dropped 39.7% to RM161.18 million from RM267.35 million mainly due to fewer work orders and contracts being converted by oil majors under topside maintenance contracts. Vessel utilisation rate was also lower at 58% versus 64% in 2QFY2025.
The decline was compounded by lower third-party vessel chartering and ancillary income, mainly from catering as well as mobilisation and demobilisation activities, and operational disruption involving one of the group’s workboats.
Profit was also weighed down by the absence of a RM19.6 million net realised and unrealised foreign exchange gain recorded a year earlier.
No dividend was declared for the quarter under review.
For the cumulative six months ended June 30, 2026 (1HFY2026), net profit declined 38.9% year-on-year to RM54.36 million, while revenue dropped 30.3% to RM293.53 million.
Despite the weaker first-half performance, Dayang Enterprise said earnings visibility remains strong, backed by an order book of about RM4.72 billion, which provides revenue visibility over the near to medium term.
“Looking ahead, the group remains well-positioned to participate in upcoming contract awards, leveraging its established track record, operational capabilities, and long-standing relationships with clients,” it added.
Shares of Dayang Enterprise ended two sen or 1.3% lower at RM1.52 on Thursday, valuing the company at RM1.76 billion.