As a result of the strong operational performance in the fourth quarter of 2018, Dayang has also recorded one of the highest quarterly profit after tax in our history. This is largely attributable to better cost control, improved efficiency and streamlined project management. It is also evidently positive that vessel utilisation came in stronger at 73%in the fourth quarter, compared to a utilisation rate of 51% for the fourth quarter a year ago. Our fleet utilisation has been gradually improving since the first quarter of 2018 when it was as low as 27%. We are particularly delighted to note that the synergistic collaboration between Dayang and its subsidiary, Perdana Petroleum has indeed worked out satisfactorily and this should reinforce our position to be the leading integrated MCM player.
DAYANG ENTERPRISE HOLDINGS BHD (712243-U) P a g e | 24 B3. Prospects (Cont’d) Barring any unforeseen circumstances, we are optimistic that the strong earnings trend will be sustainable, premised on our fairly sizable order book of RM3 billion to last us at least until 2023. Notwithstanding the volatility in oil price, we remain upbeat on the company’s future prospects as Dayang has emerged stronger after going through one of the most challenging period over the past few years. We are confident that our balance sheet will continue to be strengthened as the impressive financial performance in 2018 has clearly demonstrated. After securing a larger portion of the Pan MCM contracts estimated at RM1.5-2.0 billion from multiple production sharing contractors in Malaysia this year, Dayang has also started to look at international expansion to further grow the company. In November 2018, Dayang together with Gujurly Inzener, its local partner in Turkmenistan, via a joint venture company, were awarded a contract for the provision of facilities maintenance support for Petronas Carigali (Turkmenistan) Sdn Bhd. The value of this contract which is estimated to be around USD100 million covers a three-year period effective from 01 January 2019 to 2021 (with an option to extend for a further period of one year). This contract is expected to contribute positively to Dayang’s profitability. As for our subsidiary Perdana Petroleum Berhad (PPB), the proposed debt restructuring scheme with the financial institutions under the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia is still in progress. Once this restructuring is finalised, PPB and Dayang Group should emerge stronger than before. We are hopeful that Dayang will return to its glorious days in the not-too-distant future as we carefully execute our long-term business plans. The Board will remain vigilant and continue to exercise due care and prudence in the running and ad ministration of the company’s business.
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- Balance Sheet, Generally Accepted Accounting Principles, DAYANG ENTERPRISE HOLDINGS BHD