Dayang Enterprise bottom line more than doubles

PETALING JAYA: Dayang Enterprise Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2016 more than doubled to RM47.09 million from RM16.48 million a year ago due to lower expenses incurred.
In a filing with Bursa Malaysia yesterday, the company said the expenses incurred a year ago include property, plant and equipment (PPE) written off of RM68.5 million compared with only RM3.6 million impairment loss on PPE during the quarter under review.
Revenue for the quarter fell 16.27% to RM185.61 million from RM221.67 million a year ago due to lower vessel utilisation rate and work orders received and performed.
For the financial year ended Dec 31, 2016, net profit fell 68.10% to RM54.93 million from RM172.17 million a year ago while revenue dropped 10.78% to RM694.65 million from RM778.58 million a year ago.
The company expects the gradual recovery of crude oil price to augur well for the sector.
“The measures taken by Opec and non-Opec members to curb production output have certainly stabilised crude oil prices and this should encourage oil majors to increase spending in 2017. If this happens, it will invariably provide more opportunities for the service providers of maintenance services and OSV chartering business. As such, it is in this area that the group anticipates a better prospect for the current year,” it said.
The company has a remaining order book of RM2.8 billion to last until 2018.