PETALING JAYA: Dayang Enterprise Holdings Bhd
is anticipated to record decent earnings this year, on the back of improved job orders and vessel utilisation rates.
Hong Leong Investment Bank (HLIB) Research said it sees improved job orders from oil majors amidst elevated oil prices.
“We see improved job contract value across the board for the entire oil and gas service provider value chain and better projected blended vessel utilisation rates in financial year 2023.
“However, the group may not register a net profit growth this year because of significant project delays from a major client in the first quarter of 2023.
“Also, we highlight that the Safina Project Phase 2 tender has been delayed from mid-2023 to end-2023,” said HLIB Research in a report.
Dayang offers offshore maintenance services, minor fabrication operations, offshore hook-ups and the commissioning and chartering of marine vessels.
Meanwhile, RHB Research expects Dayang’s earnings to pick up sequentially in the second and third quarters of this year, backed by seasonally stronger work orders and vessel utilisation.
“Dayang stands a good chance to win a portion of the newly tendered asset integrity backlog clearance project which could be awarded by the fourth quarter of 2023.”
RHB Research also said Dayang guided that sufficient notice would be given to the company whenever there is a vessel shortage.
In such a situation, Dayang said it would be allowed to source its own vessel with a minimal management charge to clients.
“This would resolve the vessel availability issue. The three delayed projects were scheduled to kick start this year: one in May and two in August.
“With the issue being resolved, we see lesser project delay risk and expect Dayang’s work orders to pick up sequentially in the second and third quarters of this year.”
On the marine charter segment, RHB Research said that utilisation could reach 70% in the second quarter of this year (from 26% in the first quarter) and potentially hit 80% in the third quarter.
“Full year vessel utilisation guidance remains unchanged at 60% to 65% while the daily charter rate has increased 7% to 10% on average year-on-year.”
