DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
20
We would also like to take this opportunity to proudly
declare that in 2015, Dayang was listed by Forbes
Asia as one of the “200 Best Companies under a
Billion (USD)”. A total of eleven Malaysian companies
were named and Dayang was one of only two O&G
companies that made it into the list.
Review of Operations
East Malaysian operations were cut back in FY15
especially with regards to our Shell HUC contract.
HUC and TSM activities for Petronas Carigali were
also reduced in East Malaysia but this has been
compensated by increased maintenance activity in
West Malaysia as well as our recent venture into the
realmof EPCC contracts which stands for Engineering,
Procurement, Construction and Commissioning.
On that note, our RM280mil maiden EPCC project
(Bardegg-2 and Baronia EOR) is currently in full swing
and should continue to be an addition to our revenue
stream for FY16. Ongoing contracts with the rest of
our other clients, namely Nippon Oil and Murphy
Oil, have remained relatively unaffected during this
down-cycle.
Unsurprisingly, the OSV sector is struggling to stay
afloat due to a reduction in offshore activities which
has led to lowered demand for vessels. Circumstances
were further aggravated by an accompanied drop
in vessel charter rates towards Q3 and Q4 last year.
Operational resilience and a thorough understanding
of marginal and breakeven costs will be the emphasis
going forward especially for our capital intensive
marine charter subsidiaries.
We are delighted to announce that major contracts
won in FY15 include a two-year Facilities Improvement
Project (FIP) for Petronas Carigali worth RM250mil and
a one year extension on our TSM contract with the
same client. At this point in time, we are tendering for
an additional RM350mil worth of contracts.
Though cost optimisation will be the company’s major
focus in the immediate future, we will not do so at
Message to Our Shareholders
(cont’d)
