Clean balance sheet strengthens flexibility despite softer earnings year
KUCHING: Dayang Enterprise Holdings Bhd has cleared all its bank borrowings, entering 2026 with a clean balance sheet and stronger financial flexibility.
Group managing director Tengku Dato Yusof Tengku Ahmad Shahruddin said the group ended 2025 free of borrowings and encumbrances.
“This strengthened balance sheet enhances the group’s financial flexibility and position the group well to pursue future growth opportunities while maintaining prudent capital management. The group continues to maintain healthy liquidity supported by its strong operating cash flows and disciplined capital deployment,” he said.
However, earnings softened in FY2025, with after-tax profit falling to RM231.7 million from RM364.6 million, as revenue declined to RM938.1 million from RM1.47 billion.
Tengku Yusof said the shift reflects fewer contracts secured and weaker marine conditions.
“The performance of the topside maintenance division was mainly attributed to the lower number of contracts secured by the group during the financial year while the marine division’s performance was impacted by a lower vessel utilisation rate of 56 per cent as compared to 65 per cent in FY2024, softer daily charter rates (DCR) across all vessel categories, and reduced contribution form third-party vessels,” he said.
Topside maintenance remained the main contributor at 53.78 per cent of revenue, while the marine division made up 46.22 per cent.
Even so, the group held its margins at about 43 per cent.
Operationally, Dayang stayed active, executing projects and bidding for new work, with several tenders still pending.
“The group also strengthened its long-term operational capacity through the construction of a new accommodation work boat, which is currently under development. The new vessel is expected to enhance the group’s offshore support capabilities and improve operational efficiency in serving offshore maintenance and hook-up commissioning activities.
“This strategic investment reflects the group’s continued commitment to expanding its marine fleet and positioning itself to capture future offshore opportunities,” he said.
With an order book exceeding RM4 billion, the group expects to sustain momentum.
Tengku Yusof said FY2026 will be shaped by global uncertainty, particularly geopolitical tensions driving oil price volatility.
“While such conditions may create challenges and fluctuations in the market, higher oil prices are generally expected to support increased upstream oil and gas activities as operators continue to invest in sustaining and enhancing production levels. This is anticipated to drive demand for the group’s topside maintenance and offshore support vessel services,” he added.
Executive chairman Datuk Hasmi Hasnan said the group is repositioning for long-term value.
“While the global and domestic oil and gas services landscape continued to evolve, the group remained steadfast in strengthening its strategic foundations, enhancing operational capabilities and preparing for emerging industry shifts,” he said.
He described the weaker results as cyclical, not structural.
“Looking ahead, we envision Dayang not only merely as a service provider but as a strategic partner powering Malaysia’s long-term energy agenda.
“We will intensify efforts to enhance operational efficiency, strengthen cost competitiveness and ensure uncompromising safety performance. These remain the pillars upon which our long-term resilience is built.
“The industry is entering a new era defined by digital enablement, data driven maintenance and more intelligent asset deployment. The group is exploring strategic investments in digital tools, analytics and fleet optimisation technologies to unlock productivity gains and reduce operating costs.
“Our long term success will be shaped by our people. We are committed to strengthening capabilities, developing future ready talent and cultivating a culture built on innovation, accountability and shared purpose. As the sector evolves, human capital will be our greatest competitive advantage,” he added.
He said the group is also strengthening sustainability reporting and governance practices.
