KUALA LUMPUR: Dayang Enterprise Holdings Bhd's net loss widened more than 22-fold year-on-year (YoY) to RM21.89 million in the second quarter (Q2) ended June 30, 2021, from a net loss of RM0.98 million incurred previously.
In an exchange filing today, the company said this was due to an additional allowance for impairment loss on property, plant and equipment of RM27.9 million and a net realised/unrealised foreign exchange loss of RM0.1 million.
Its Q2 revenue eased 6.6 per cent to RM159.69 million YoY from RM170.95 million, mainly attributed to lower vessel utilisation at 51 per cent, resulting from delayed work orders/contracts being awarded from oil majors during the period.
Dayang Enterprise slipped into the red for the first half period with a net loss of RM49.43 million from a net profit of RM8.34 million, while revenue decreased 28.9 per cent to RM243.75 million from RM343.00 million.
The company is optimistic that the government can contain the pandemic in the remaining months with the ongoing vaccination efforts.
"We believe the outlook in the third quarter of 2021 will improve considerably as the crude oil price has also stabilised at a healthy level which bodes well for the oil and gas industry."
Dayang Enterprise's order book remained strong at about RM2.3 billion, ensuring healthy earnings visibility over the next few years.
"We will continue to be vigilant and exercise due care and prudence in the running and administration of the company's business.
"We remain confident that our strong execution track record and a healthy balance sheet will sustain the group through this challenging period," it added.