Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
19
Although things may look challenging for the OSV
market in the near term, the acquisition of Perdana
is a strategic long term play which will boost our
competitiveness when bidding for the next round
of HUCC (Hook-up, Construction & Commissioning)
tenders. In themeantime, wewill continue establishing
new synergies with our most recent subsidiary as we
look towards our long term objective of becoming the
market leader in HUCC and topsides maintenance
(TSM) services within the region. In the near future, it is
possible that we may divest our holdings in Perdana
while still maintaining control of the company in order
to pare down our borrowings.
Financial Review
Regrettably, the financial year ended Dec 2015 (FY15)
marks the first year in our history where profits failed
to see a year-on-year increase. Revenue decreased
from RM877mil in FY14 to RM779mil in FY15 owing
to a slower intake of work orders and lower vessel
utilization. Similarly, profit after tax was down from
FY14’s record high of RM181mil to RM170mil in FY15.
It should be noted that we made a fair value gain
of RM108mil from the acquisition of Perdana but this
was offset by Perdana’s FY15 net loss of RM118mil. The
Message to Our Shaholders
(cont’d)
Group’s combined order book (including Perdana’s)
of more than RM3.8bil should sustain our earnings until
2018 though it will be fairly difficult to predict short
term revenue figures or subsequent profits during such
turbulent times.
As expected, Dayang’s share price has continued
to slump in line with the falling oil price due to poor
market sentiment. About a year ago, Dayang’s share
price was trading at above RM2.80 when the Brent
crude oil price was above USD80 per barrel. On 21
January 2016, Dayang’s share price traded at a
low of RM0.99 when the Brent crude oil price dived
below USD30 per barrel. The share price has since
rebounded to the RM1.40 mark as at 3 March 2016,
which goes to show that Dayang’s share price is very
much tied to the ups and downs of the global crude
oil price.
A dividend payment of 3.5sen per share was
declared and paid in April 2015. Unfortunately, the
board has decided not to pay another dividend
for the second half of 2015 in order to preserve our
funds. The Group’s net gearing ratio for the year
ended at 1.5 times which we envisage will be pared
down progressively through better management of
the Group’s vessel portfolio and various synergistic
strategies that have been put into action as well as
through the divestment of our stake in Perdana.
