Dayang Enterprise earnings fall

PETALING JAYA: Dayang Enterprise Holdings Bhd saw its net profit plunge 97% to RM1.12 million in the third quarter ended Sept 30, 2017 (Q3), from RM36.17 million in the previous corresponding quarter.
In a filing with Bursa Malaysia today, the group said this was due to lower profit margins from lower charter rates and taking into account expenses such as net unrealised foreign exchange loss as well as impairment loss.
Revenue for the quarter increased 4.5% to RM212.8 million, compared with RM203.63 million in the same period last year, mainly due to higher work orders received and performed.
For the nine months period, it registered a net loss of RM89.68 million, against a net profit of RM7.84 million a year ago, while revenue grew 2.5% to RM521.73 million, from RM509.04 million previously.
Dayang said the net loss was mainly due to an impairment loss on property, plant and equipment of RM50.4 million, impairment loss on receivables of RM1.4 million and net realised/unrealised forex loss of RM32.5 million as compared to a net realised/unrealised forex gain of RM7.4 million in the corresponding period-to-date.
On its prospects, the group said the board remains cautious and vigilant in its pursuit for more contract replenishment and also a longer term charter opportunity for its fleet of vessels.
“At the same time, it is important that the management be directed to focus diligently in improving the group cashflows and the sustenance of the group in a very challenging market environment.”
Dayang slipped 3 sen or 4.69% to 61 sen today with 1.89 million shares traded.