Latest Quarterly Result
Quarterly Report For The Financial Period Ended 31 December 2019
Financials Archive
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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Third Quarter ended 31 December 2019 (Unaudited)
Condensed Consolidated Statement of Financial Position As at 31 December 2019 (Unaudited)
Review of Financial Performance
The Group's performance for the current quarter under review versus the corresponding quarter of the previous financial year is tabled below:
Comparatively, there was no increase in the Group's revenue for the current quarter ended 31 December 2019 as compared to the corresponding quarter of the preceding year. The group made a profit before tax of RM119.7 million for the current quarter as compared to profit before tax of RM131.2 million in the corresponding quarter ended 31 December 2018.
Whilst revenue remain constant, profit before tax for the current quarter decreased by RM11.5 million ie.9% . The Group recorded a lower profit before tax in the current quarter as a result of a one-off professional fees relating to the debt restructuring amounting to RM3.7 million as well as an allowance of impairment loss of PPE of RM2.8 million as compared to the reversal of impairment loss on PPE of RM20.8 million in the corresponding quarter.
The profit after tax in the current quarter has taken into account current year tax expense of RM37.2 million and deferred tax expense of RM5.3 million.
In the opinion of the Directors, the results for the current quarter have not been affected by any transactions or events of a material nature which have arisen between 31 December 2019 and the date of this report.
The Group's performance for the current financial period-to-date under review versus the corresponding previous financial period-to-date is tabled below:
Revenue increased by 12% from RM937.6 million in the previous corresponding year-to-date to RM1.05 billion in the current year-to-date. The higher revenue in the current year as compared to the preceding year is mainly due to higher value of work order received and performed in the current year.
The Group's gross profit has increased by 29% from RM385.4 million in the preceding year to RM499 million for the current year ended 31 December 2019 mainly due higher profit margin on work orders received and performed during the current financial year as compared to the preceding year.
The Group has accounted for a gain on bargain purchase of RM18.8 million arising from the acquisition of a new subsidiary and a net realised/unrealised foreign exchange of RM1.1 million in the current year as compared to a net realised/unrealised foreign exchange gain of RM11.4 million in the preceding year. The profit before tax in the preceding year has also taken into account of amortization expenses of RM12.5 million. This has resulted in the lower profit before tax of RM220 million in the preceding year as compared to the higher profit before tax of RM335.2 million in the current year.
Prospects
Financial year 2019 has indeed turned out to be a great success as we achieved the best ever annual profits in the long history of Dayang. In spite of the external uncertainties and multiple headwinds from all directions, we have grown from strength to strength to hit the significant milestone, registering a massive 44% growth for our 2019 profits after a stellar performance in 2018. The strong growth momentum has been envisaged as we maintained and carefully executed our business plan throughout the year.
This remarkable achievement comes on the back of the robust work orders for the Maintenance, Construction and Modifications Contract (MCM) and Topside Maintenance Services works under the Pan Hook-up and Commissioning Contract (Pan HUC). Consequently, vessel utilisation also came in stronger at 70% for 2019, as compared to 64% in 2018. Without exaggeration, this set of strong positive result was achieved thanks to essentially a good team work from every member of the company's work force; a clear display of team work working at its best and teamwork working at its finest.
Another important aspect was in the second half of 2019, more work orders with higher values were issued and executed as job momentum continued to pick up strongly. Therefore not surprisingly, for the very first time in our long history, Dayang Group is able to achieve our annual revenue exceeding the RM1 billion mark. Presumably, the combined strength and the synergistic collaboration between Dayang and its subsidiary, Perdana Petroleum is working well.
Further, the ability to win two I-HUC contracts in December 2019 from Petronas Carigali reaffirmed the trust, confidence and support of our esteemed clients, especially Petronas. In early Feb 2020, we added on another contract by CARIGALI-PTTEPI Operating Company Sdn. Bhd. for the provision of modification works for Block B-17 & C-19 and B-17-01 for a period of three years with two years extension option. Both these replenishments of new contracts has increased our order book to an estimated RM4.5 billion to last us until 2023. This will positively enhance our prospects and earnings visibility over the next three years. We remain upbeat on the company's future prospects as Dayang will leverage on its strong execution track record to ride on the ramp-up in business activities.
After the completion of the group-wide debt restructuring, Dayang is now ready to embark on long-term growth plans to further maximise shareholder value given our more efficient capital structure. We are confident that our strong cash flow generation and healthier balance sheet will propel us to greater heights going forward and we should therefore be able to reward our faithful shareholders who have remained steadfast with us throughout this journey.
The Board remains committed in ensuring the Group continues to excel and to deliver yet another distinctive set of good result in the company's business.