Dayang has ongoing jobs worth RM627mil

KUALA LUMPUR: Main board-bound Dayang Enterprise Holdings Bhd hopes to secure some of the RM600mil worth of domestic oil and gas projects it has tendered for before year-end, managing director Tengku Yusof Tengku Ahmad Shaharuddin said.
The Miri-based company, in which main board-listed Naim Cendera Holdings Bhd owns 45% interest, currently counts Petronas Carigali Sdn Bhd, Sarawak Shell, Sabah Shell, ExxonMobil and US-based Murphy Oil as its clients.

Speaking to reporters at the prospectus launch yesterday, Tengku Yusof said as at the end-of last year, Dayang had secured a letter of award for the provision of hook-up and commissioning of Petronas Carigali facilities up to 2010.

He estimated the job, which would be shared among five parties, to be worth RM500mil.
Tengku Yusof said the provision of hook-up and maintenance – a new segment – contributed 2% to Dayang’s revenue last year, which the company hoped to increase this year.

Dayang recorded a net profit of RM28.85mil on revenue of RM127.1mil for the financial year ended Sept 30, 2007.

At present, its ongoing contracts are worth about RM627mil, which would last about three years. The company has to date completed offshore topside maintenance contracts totalling RM934mil.

In its prospectus, Dayang has forecast net profit at RM45.2mil on revenue of RM183.2mil for the 15-month financial period ending Dec 31.

On an annualised basis, net earnings per share (EPS) would be 10.27 sen based on the enlarged share capital post-listing compared with EPS of 8.2 sen for FY2007.

Dayang has also forecast a net dividend per share of 3.65 sen, or a net yield of 2.52%, with a net dividend cover of 2.81 times.

On the initial public offering (IPO) proceeds totalling RM124.5mil, Tengku Yusof said some 41%, or RM51.45mil, would be used to partly finance the construction of a new vessel and purchase new machinery and equipment, while the remaining RM60mil would be used to fully redeem its Islamic medium term notes.

Tengku Yusof said with the third workboat in hand and with daily charter rates at US$15,000 to US$17,000, Dayang could reap an additional RM15mil in revenue annually.

The company’s biggest revenue contributor is offshore topside maintenance services, which accounted for RM66.3mil, or 52.1% of group revenue, in FY2007.

Shares in Dayang, scheduled for listing on April 28, are being offered at an IPO price of RM1.45 each. A total 17.6 million shares would be made available to the public, 8.5 million shares to eligible directors, employees and business associates, while 59.7 million shares would be placed out to identified investors.

(StarBiz Online)