Dayang Ends With 8-Sen Premium in Debut

By Zuraimi Abdullah

MIRI-based Dayang Enterprise Holdings Bhd opened 23 sen higher than its offer price of RM1.45 and topped the active list on its debut on Bursa Malaysia’s main board yesterday.

Dayang, Sarawak’s first oil and gas company to be listed, ended the day with an eight-sen premium at RM1.53. It was the most active stock with a total of 41.5 million shares traded.

“It’s quite a milestone to be the first oil and gas services company from Sarawak to be listed on the stock exchange, joining 635 other companies on the main board,” said Dayang managing director Tengku Yusof Tengku Ahmad Shahruddin.

The listing exercise helped Dayang raise RM124.5 million.

A total of RM51.45 million of the proceeds will be used to partly finance the company’s new vessel and purchase of new machinery and equipment. Another RM60 million is to redeem its Islamic medium- term notes.

Tengku Yusof said Dayang’s total contracts tendered had increased to RM800 million currently from RM595 million as at March 31 this year.

It recently tendered for a topside work contract for an oil major worth some RM200 million.

“If secured, the contract will further boost Dayang’s bottomline,” he said.

The company now has an order book of RM627 million to keep it busy for the next three years.

Jobs for Petronas Carigali account for 70 per cent of Dayang’s total contracts. Other clients are Sarawak Shell, Sabah Shell, ExxonMobil and US-based Murphy Oil.

Dayang has to date completed contracts totalling RM934 million.

The company has forecast a RM45.2 million net profit in the fifteen months ending December 2008.

Year-to-date net profit has already exceeded the forecast at RM49.6 million.

Dayang attributed the performance to the increase in works for offshore topside maintenance services. It is currently servicing 309 platforms in Malaysia.

(c) 2008 New Straits Times. Provided by ProQuest Information and Learning. All rights Reserved.