Dayang secures RM4bil offshore contracts

KUCHING: The three new major offshore topside maintenance contracts awarded to Dayang Enterprise Holdings Bhd by oil majors recently are worth an estimated RM4bil, says group managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin.

Its wholly-owned subsidiary, Dayang Enterprise Sdn Bhd (DESB), was awarded contracts for the provision of Pan-Malaysia offshore maintenance, construction, modification (MCM) and hook-up and commissioning (HUC) services for Package A3, Sarawak Asset (SKA Oil), and Package A5, Sabah Asset (SBA Southern), by PETRONAS Carigali Sdn Bhd.

The third contract won by DESB is for MCM & HUC services for Package B4 from Sarawak Shell Bhd/Sabah Shell Petroleum Co.

Dayang did not reveal the value of the these contracts in its announcements last November, only stating that the contract sum would be based on the work orders to be issued by PETRONAS Carigali and Shell.

Tengku Yusof said these new contracts are for a primary period of five years, with an option for another five years.

“Together, the group has four running contracts, including asset integrity facilities that will provide earnings visibility for the next 10 years,” he stated in the company’s 2024 annual report.

He added that Dayang is currently awaiting the outcome of various tender submissions for new contracts it made last year.

For financial year ended Dec 31, 2024 (FY24), Dayang reported a 32.91% jump in group revenue to RM1.47bil (FY23: RM1.11bil), with the topside maintenance division contributing RM941.8mil (FY23: RM730.4mil).

The MCM business generated RM771.9mil in revenue.

Year-on-year, the marine segment generated higher revenue of RM526.3mil, driven by high vessel utilisation rate of 68% and improved daily charter rates for all types of vessels, including third-party vessels.

On prospects for FY25, Tengku Yusof said the global economic outlook this year remains cautiously optimistic, outlook, with growth anticipated despite potential challenges.

“For the oil and gas industry, we initially anticipated the oil price to stabilise between US$65 and US$70 per barrel. However, taking into account the recent tariff imposed by America, the price of oil has become volatile.

“We still believe our segment of platform maintenance will be least affected as not to avoid any disruption in oil production. The group’s resilience, bolstered by three secured contracts for the next five years, positions the group for continued success.

“The expected increase in capital expenditure from clients aiming to enhance oil and gas production is a promising sign that demand for our services in topside maintenance and offshore support vessels will remain strong,” he added.

In March and April 2025, Dayang’s wholly-owned subsidiary, DESB Marine Services Sdn Bhd, secured work orders from oil majors for the charter of several offshore supply vessels.

These include the provision of two accommodation workboats – Dayang Berlian and Dayang Pertama – to PETRONAS Carigali for 975 days, with an option to extend up to 890 days, and 244 days, with an option to extend up to 60 days, respectively.

DESB Marine was also awarded a contract by SEA Hibiscus Sdn Bhd for the charter of one accommodation workboat for 110 days, with two extension options of up to 30 days each, and another contract from Hibiscus Oil & Gas Malaysia Ltd for the provision of one workboat for 30 days, with two extension options of up to 30 days each.