KUALA LUMPUR: Daya Materials Bhd has exited offshore subseas business after completing its US$100 million sale of Daya Global 1 Pte Ltd to Siem OCV Pte Ltd.
Chief executive officer Datuk T.S. Lim said Daya is channelling resources into infrastructure especially rail-related projects.
It is in the midst of negotiating with the relevant parties to secure contracts relating to rail engineering, Lim added.
Daya yesterday said the disposal would reduce its debts by 62 per cent ot RM406.9 million from RM660.0 million to RM253.1 million as at December 31, 2016.
The move was strategic for it to strengthen its financial position, the company added.
“This is the beginning of our turnaround plan and we are both optimistic and excited about the group’s future.
“Our exit from the offshore subsea business will allow us to focus on our core and profitable businesses and our financial results will no longer be dragged down by this loss-making business,” Lim said in a statement.
Daya expects its future earnings drivers to be coming from the infrastructure, construction and downstream oil and gas segments.
“We will be looking to further strengthen our position in the construction sector which has been a profitable segment of the Group.
“We are also expecting our downstream oil and gas business to continue to perform well given its positive contribution to the Group’s profitability, on the back of our established performance track record and market presence.” Lim said.