Wednesday, January 15, 2014

Daya Materials Bhd - more contracts and record profits


With an existing orderbook of RM1.5bil, there are possibilities for more contracts and record profits.

It won two major charter contracts from Norway. The earnings from these contracts are set to be realized in 2014.

In the 2000s, Daya has been more focused on the downstream oil and gas (O&G) segment. It chugged along, growing organically until 2013, when it entered the offshore construction segment.

It formed Daya Offshore Construction Bhd (DOC) in September 2012. The arrival of vessels Siem Daya 1 and Siem Daya 2 proved to be Daya’s inflection point.

On Aug 16 2013, Daya clinched a seven year charter contract from Technip for the provision of a subsea construction vessel. This project will run for 100 to 175 days per annum commencing in 2014 with an estimated value of RM250mil to RM440mil.

On Sept 3 2013, Daya won again with Technip, when it secured another three-year contract for a period of 100 to 175 days with an estimated value of RM100mil to RM176mil.

Contributions from the North Sea are set to climb starting from the first quarter of 2014, as contributions from Siem Daya 1 and Siem Daya 2 kick in. Daya’s revenue could further increase should Reach Energy Bhd, in which Daya has made an investment as an initial investor, acquire O&G assets overseas.

Reach Energy is set to become Malaysia’s fourth special purpose acquisition company once it gains the approval for a listing from the Securities Commission.

No comments:

Blog Archive

Followers

Disclaimer:
Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.