Dayang Enterprise registers RM71 million after-tax profit

MIRI: Upstream oil and gas services provider Dayang Enterprise Holdings Bhd posted a record after tax profit of RM71.4 million last year, doubling earnings per share compared to forecast figures.

In a statement released after its AGM held at Imperial Hotel here yesterday, its managing director Tengku Yusof Tengku Ahmad Shahruddin said earnings attributable to shareholders was 20.3 sen per share compared to 10.3 sen forecast in its IPO prospectus.

The Miri-grown and public-listed group has a good year and its impressive performance also earned shareholders handsome dividends of 14 sen per share amounting to 51.4 per cent of its total distributable earnings for 2008.

This dividend payment offers very adequate short-term financial returns to investors as well as maintaining reasonable returns for future growth.

On outlook and current year’s prospects, Tengku Yusof said Dayang Enterprise would concentrate on its core business and delivering on its order book of contracts worth RM500 million which would last until 2012.

The group would sustain and maintain its contracts and business for offshore topside maintenance and hook-up and commissioning works and provision of vessels charter and marine services.

Dayang Enterprise is expecting delivery of its fourth workboat and fifth vessel by July this year, in line with its target of 15 vessels by 2012.

According its deputy chairman and founder James Ling Suk Kiong, the group is on a good track and still has much room for growth and expansion, but the primary focus is training its competitive edge on potential contracts in Malaysia.

The group has been relatively unaffected by the topsy-turvy oil prices, and it has the competitive edge of having two sprawling stockyards in Labuan, vessels, sizeable pool of technical and offshore workers and sound management .

“We are quietly confident as we have the experience of over 20 years in this business, the capacity and resources in our core businesses and we have no borrowings (from bank).

“We believe we have what it takes to sustain and grow our company in a profitable and responsible manner,” he added.

Major clients such as Shell and Petronas would continue to spend on integrity of production platforms and ensure that they are primed for maximising production if oil prices turn lucrative.

The world oil price shot up to US$147 per barrel at its peak before plummeting last year, and recently eased back to US$60 level.

The group has posted an after tax profit of RM11.1 million from the revenue of RM45.1 million in the first quarter of this year, but Tengku Yusof said the business environment had changed compared to a year ago.

He was, however, optimistic that business activities would pick up in the second and third quarters this year, and the board of directors might discuss further dividend payout if the half year earnings remained robust.

The company has a paid up capital of RM176 million, and a healthy balance sheet of net assets of RM316.3 million, zero gearing and cash of RM100 million in its kitty.

Asked if the group plans to expand abroad, he replied: “We are having our hands full now in Malaysia as there are still a lot of opportunities here, and will only review it at the end of 2009.”

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