KUCHING (March 25): Dayang Enterprise Holdings Bhd (Dayang) has secured charters for three accommodation work boats, each with contract durations exceeding two years and options for further extension.
The contracts of three long-term work orders from Petronas Carigali is for the charter of its accommodation work boats Opal, Zamrud, and Ruby, with respective start dates on 23 January, 7 February, and 20 February 2025.
The firm charter durations range from 1,005 to 1,043 days, with an additional optional extension of up to 829 days.
While the contract value was not disclosed, researchers with Kenanga Investment Bank Bhd (Kenanga Research) estimate the daily charter rates (DCRs) to be at least RM80,000.
This is based on comparable recent charters awarded to its subsidiary, Perdana Petroleum Bhd (Perdana Petroleum).
“Based on recent market benchmarks, including Perdana’s charter secured in August 2024 with implied DCR of RM86,928 to RM95,082 – we estimate the secured charters could be priced at a conservative DCR of RM80,000,” it said in its notes today.
“This is consistent with our existing assumptions of 82 per cent vessel utilisation and DCR of RM81,000 for AWBs.”
Assuming a 26 per cent net margin (our assumption for the marine division), each charter could contribute at least RM6 million in profit after tax (PAT) annually, further strengthening Dayang痴 earnings visibility heading further into financial year 2025 (FY25).
Kenanga Research continues to like Dayang due to the sustained ramp-up in upstream maintenance activities as well as the anticipated expansion in project margins due to better contract terms secured.
Dayang’s net cash balance sheet allows for more potential expansions, and its marine division set to benefit from the boom in OSV up-cycle.
“The award reinforces Dayang’s strong position in the maintenance-focused offshore support segment and supports its vessel utilisation outlook in FY25.
“We maintain our forecasts (as we have already imputed 82 per cent vessel utilisation for its vessels for FY25 and FY26), target price of RM3.31 per cent, and outperform call.”
-Agency
