Dayang Enterprise 3Q profit falls 23% yoy to RM32m

by **Cals** Tue 26 Nov 2013, 18:18

Business & Markets 2013

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 26 November 2013 17:49

KUALA LUMPUR (Nov 26): Dayang Enterprise Holdings Bhd’s net profit fell 23% year-on-year (y-o-y) to RM32 million in the third quarter ended Sept 30, 2013, from RM41 million a year ago.

But revenue rose 35% y-o-y to RM171 million from RM127 million.

In a statement to Bursa Malaysia, the oil and gas service provider said the lower profit was due to mobilisation costs incurred in the execution of the PAN HUC contracts as compared to the previous corresponding quarter.

Dayang said the higher revenue is mainly due to higher value of work orders received and performed in the current quarter for the hook-up, commissioning and topside major maintenance services.

For the nine-month period, profit chalked up RM126 million from RM88 million a year earlier, while revenue raked in RM371 million versus RM317 million in the previous corresponding quarter.

Dayang said the higher profit for the nine-month period was mainly due to the reclassification of fair value reserve to profit or loss on remeasurement of available-for-sale investment as an equity-accounted associate. This was absent a year ago.

The firm said the larger revenue is mainly due to higher fleet utilisation and higher revenue from hook-up, commissioning and topside major maintenance services.

“The directors remain positive of the group’s prospects for the remaining quarter of the year as we have on-going contracts of above RM4 billion to last at least until 2018,” said Dayang.