KUCHING: Dayang Enterprise Holdings Bhd has recorded a 42 per cent increase in group net profit, rising to approximately RM311.1 million for the financial year ended December 31, 2024, compared to RM218.98 million in FY2023 — an increase of RM92.1 million.
This growth was largely driven by improved vessel utilisation, better margins from vessel chartering, and an increase in contract work from oil majors. The strong earnings were in line with revenue growth, which rose to RM1.47 billion from RM1.11 billion in FY2023. Dayang’s earnings per share increased to 26.87 sen, up from 18.91 sen previously. In the current financial year, Dayang’s offshore topside maintenance services (TMS) segment generated a turnover of RM872 million (FY2023: RM666.5 million), while the marine charter segment contributed RM526.3 million (RM382.6 million).
Dayang attributed the 32 per cent growth in group revenue for FY2024 to improved daily charter rates, higher margins from vessel chartering, an increase in third-party vessel charters, and additional work orders/contracts awarded by oil majors. Vessel utilisation rates for the year under review increased to 68 per cent, up from 58 per cent in FY2023. “In addition to the better margins from the revenue streams mentioned above, the higher profit before tax (RM503.2 million vs RM337.4 million in FY2023) was also due to lower finance costs, as the group accepted a new secured term loan to fully redeem the Sukuk Murabahah on November 14, 2023.
“The profit before tax recorded for the current year also reflects a net realised/unrealised foreign exchange gain of RM10.4 million, partially offset by an impairment loss on property, plant, and equipment of RM41.7 million, as well as a net realised/unrealised foreign exchange loss of RM12.1 million and an impairment loss on goodwill of RM6.0 million recorded in the corresponding period,” Dayang stated in explanatory notes accompanying its financials.
However, in 4Q2024, Dayang reported a sharp decline in net profit, which plunged by nearly RM77 million to RM16.8 million (4Q2023: RM93.79 million) as revenue dropped to RM316.7 million (RM351.1 million). The company attributed the lower revenue in the current quarter to the monsoon season, which reduced vessel utilisation rates to 48 per cent, down from 55 per cent in the corresponding quarter of 2023.
“Fewer work orders/contracts awarded by oil majors under topside maintenance contracts also contributed to the lower revenue,” it added.
According to Dayang, the group’s pre-tax profit for 4Q2024 declined to RM41.1 million (4Q2023: RM139.9 million), mainly due to: A net realised/unrealised foreign exchange loss of RM29.6 million as a result of the weakening ringgit, an impairment loss on property, plant, and equipment of RM1.9 million, and an increase in depreciation charges by RM13.3 million in the current quarter.
In contrast, 4Q2023 saw a reversal of an impairment loss on property, plant, and equipment of RM41.7 million, along with a net realised/unrealised foreign exchange gain of RM7.6 million, which was partially offset by an impairment loss on goodwill of RM6 million. Compared to the immediate preceding quarter (3Q2024), Dayang’s earnings weakened significantly in 4Q2024. Quarter-onquarter, group net profit dropped by RM118.1 million (-88 per cent) to RM16.8 million (3Q2024: RM134.9 million), while revenue declined by RM131.8 million (-29 per cent) to RM316.7 million (RM448.5 million).
“The lower revenue in the current quarter was mainly due to a lower vessel utilisation rate of 48 per cent, compared to 85 per cent in the preceding quarter, in line with seasonal monsoon trends, which limited vessel chartering activities and reduced work orders received and performed under the topside maintenance contracts.
“The profit before tax for the current quarter (RM41.1 million vs RM222.3 million in 3Q2024) includes an impairment loss on property, plant, and equipment of RM1.9 million and a net realised/ unrealised foreign exchange loss of RM29.6 million, compared to a net realised/unrealised foreign exchange gain of RM49.9 million in the preceding quarter,” the company stated.
Dayang remains optimistic about robust activity across the oil and gas industry, spanning the upstream, midstream, and downstream segments. The company’s positive outlook is primarily driven by expectations of global and domestic economic growth, which is expected to support stable crude oil prices.
“Starting in 2025, the group has begun working on three new maintenance, construction, and modification (MCM) contracts that were recently secured.
As the first quarter is typically a weaker period, most work during this time is focused on planning and scheduling project execution. “With an estimated call-out contract value of approximately RM5.2 billion over the next five years, the group will continue to enhance productivity, improve efficiency in contract execution, and actively participate in new tender opportunities. “We will remain prudent in managing business affairs while continuing to deliver strong performance,” the company added. Meanwhile, Dayang has appointed two new nonindependent directors — Wong Ping Eng and Zahirudin Khab Asghar Khan — effective February 20, 2025.
Wong, 51, has over 27 years of experience in management and financial accounting. She previously served as Naim Holdings Bhd’s deputy managing director from 2013 to 2020, before opting for early retirement. Naim is the largest shareholder of Dayang. Wong is also an independent non-executive director of Gadang Holdings Bhd and serves as an advisor/executive director to several private companies.
Zahirudin, 72, previously served as an executive at Malayan Banking Bhd and was a senior manager at Bintulu Development Authority (BDA), where he oversaw property development and management of shophouses and industrial estates, as well as investment promotion to drive economic growth in Bintulu until 1997. Currently, he also serves as a director in several private limited companies. In addition, Dayang announced the resignation of independ
