Daya Materials aims restructuring plan submission in August

PETALING JAYA: Practice Note 17 (PN17) company Daya Materials Bhd is targeting to submit its regularisation plan to Bursa Malaysia Securities Bhd no later than the end of the third quarter of this year, before the deadline of March 2019.

Speaking to reporters after its AGM today, Daya Materials CEO and executive vice-chairman Datuk Lim Thean Shiang said the group is in the midst of engaging with stakeholders and finalising the appointment of a principal adviser.
“As far as the board is concerned, we have already sat and discussed in detail about this plan. What we want to be clear about is that everyone will have the same objective to bring this company back. Some will have to sacrifice certain position, for example, bondholders … we are negotiating as well,” he explained.
The company was admitted into the PN17 category in February after its shareholder equity shrank to below 25% of its issued capital as at Dec 31, 2017.
Daya Materials, which has RM600 million worth of order book and tender book, offers polymer and technical services to both the upstream and downstream of the O&G industry.
Citing the limitations of the previous government’s tendering system, Lim noted that there is still a lack of clarity in the direction of the new government, and this he said may only become more apparent next year.
He is, however, hopeful that the new government’s policy will provide a leveled playing field for bidders.
The group is also eyeing for rail-related projects, but has yet to make any bidding at the moment.
Asked of financial performance going forward, Lim expects better earnings in the second quarter of this year as the current order book will keep the company busy for the next five years.
It reported a higher net profit of RM2.06 million in the first quarter ended March 31 against RM1.87 million recorded a year ago, with revenue growing to RM90.42 million from RM57.37 million.
Daya Materials recently entered into a master agreement with Schlumberger Logelco Inc for the provision of non-explosive radial cutting torch, perforating torch cutter and related energetic and thermite based solutions services in Russia. Both parties also looking at some 12 countries as potential markets.
In February, it also signed a memorandum of understanding with Papua New Guinea-based Kumul Petroleum Holdings Ltd (KPHL) for the provision of services and products to KPHL for its oil and gas (O&G) projects in the country.