“Despite anticipation of a seasonally weaker first quarter in 2023 (1Q23), we remain upbeat on Dayang Enterprise’s outlook for 2023, premised on the back of robust work orders and better revision rates,” said RHB Research.
PETALING JAYA: Dayang Enterprise Holdings Bhd
’s recent contract win from PETRONAS Carigali Sdn Bhd will support the group’s earnings in the quarters ahead, say analysts.
RHB Research said the development provided better certainty over Dayang Enterprise’s vessel utilisation in financial year 2023 (FY23).
“Daily charter rates (DCRs) are also guided to be better. Despite anticipation of a seasonally weaker first quarter in 2023 (1Q23), we remain upbeat on Dayang Enterprise’s outlook for 2023, premised on the back of robust work orders and better revision rates,” said RHB Research.
In a filing with Bursa Malaysia yesterday, the oil and gas support services contractor said its wholly owned subsidiary, DESB Marine Services Sdn Bhd, had been awarded a contract for the provision of its accommodation workboat (AWB), Dayang Berlian, by PETRONAS Carigali.
With a duration of 207 days from Feb 17, the contract has an option to extend up to 90 days.
RHB Research said this was Dayang’s fourth AWB contract win year-to-date, following charter contract wins for other AWBs, namely, Dayang Ruby, Dayang Opal and Dayang Zamrud, at the end of last month.
“We understand the DCRs are now above RM70,000 to RM90,000 per day depending on the specification and vessel conditions. This represents a decent improvement from the RM50,000 to RM70,000 per day range a year ago,” said the research house.
It noted that Dayang Enterprise’s subsidiary, Perdana Petroleum is projected to post a higher year-on-year vessel utilisation rate in 1Q23.
However, on a quarter-on-quarter basis, the group is expected to register a lower vessel utilisation rate as in 4Q22, Perdana Petroleum has a utilisation rate of 60%.
“Overall, the full-year vessel utilisation could potentially improve to 65% (from 59% in 2022) as quarterly utilisation is likely to accelerate to more than 80% from 2Q23 to 3Q23 backed by higher upstream activities.
“Most vessels are either on spot charters and short-term contracts, and we also understand that six vessels will be chartered to Dayang Enterprise for its in-house jobs,” it said.
