Dayang poised to reap profit margin from new AWB purchase
As for daily charter rate, the group's management anticipates it be around RM80,000.
Dayang intends to acquire a new 60-tonne AWB with a capacity of 239 passengers at about RM130mil to replace an ageing vessel.
The boat will be constructed by Shin Yang Group Bhd with completion targeted by the third quarter of financial year 2027 (3Q27).
]The acquisition will be financed through a 60:40 equity-to-debt ratio.
'Management anticipates a daily charter rate of circa RM80,000 and expects a 22% profit margin from the AWB.
'With full utilisation projected for 2028, we see the vessel acquisition as a strategic move to enhance Dayang's competitiveness in tender bids and optimise operational efficiency,' Phillip Capital Research said in a report.
Despite a bad monsoon in the 1Q25, the research firm expects vessel utilisation rate to improve in the 2Q25 with Dayang's fleet operating at full capacity.
Meanwhile subsidiary Perdana Petroleum Bhd 's fleet has been operating at 80% since April this year.
According to the research firm, Dayang's current order book stood at RM5.1bil (versus RM5.2bil in 4Q24), and revenue recognition is expected to accelerate in the coming quarters following the completion of the maintenance, construction, and modification contract transition phase in March.
'We expect Dayang's strong order book will keep the group busy over the next four years until 2029.
'The RM3bil worth of offshore platform decommissioning tender – covering 31 platforms across Sabah, Sarawak, and Peninsular Malaysia over three years – is currently under commercial evaluation.
'We gathered that Sapura Energy Bhd is one of the bidders for the Sabah and Peninsular Malaysia areas.'
The research firm said Dayang's management noted that the decommissioning contract allows for operational flexibility.
Given its strong local presence, Dayang is well-positioned to secure the Sarawak package, it added. Trading ideas: Alliance, LSH, LYC, 7-Eleven, RHB, Master Tec, Mah Sing, CIMB, Capital A, SKP, Yinson, Berjaya, BAT, Bintulu, Bank Islam
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