Dyna-Mac Holdings NO4 has reported earnings of $10.1 million for the 2HFY2022, 4.2 times higher than the earnings of $2.4 million in the same period the year before.
The higher earnings were attributable to several factors including the higher revenue for the half-year period, higher gross profit margin, higher other income and lower finance expenses.
Earnings for the FY2022 also surged by 138.7% y-o-y to $13.4 million.
2HFY2022 revenue increased by 47.1% y-o-y to $167.4 million due to higher progress achieved for the projects carried out during the period and the FY2022.
Gross profit surged by 76.8% y-o-y to $19.1 million due to the higher revenue and higher gross profit margin (GPM) which increased by 1.9 percentage points y-o-y to 11.4%.
Other income increased by 5.0% y-o-y to $3.5 million mainly due to higher interest income and partially offset by lower forex gain and income earned from scrap
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Finance expenses fell by 97% y-o-y to $2,000.
Profit before tax surged 8.5 times to $8.5 million.
FY2022 revenue increased by 32.4% y-o-y to $291.5 million.
FY2022 gross profit increased by 41.8% y-o-y to $31.6 million. GPM increased by 0.7 percentage points y-o-y to 10.8%.
Other income fell by 16.5% y-o-y to $5.9 million.
Finance expenses fell by 90.1% y-o-y to $14,000.
Profit before tax surged by 182.6% y-o-y to $11.8 million.
As at Dec 31, 2022, cash and cash equivalents stood at $185.4 million.
The group’s net orderbook came in at $412.3 million as at Dec 31, 2022 with completion and deliveries stretching till 2024.
A final cash dividend of 0.29 cents per share has been recommended, making this the first dividend proposed since FY2014. This dividend is payable on May 11.
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In its statement, the group says it continues to be prudent in its spending but it will also focus on capital expenditures that will improve its productivity as well as replacing older equipment. The free cashflow will also be put aside for potential yard expansion.
It is also optimistic for the future as the long-term industry fundamentals for the offshore oil and gas remain sound underpinned by sustained crude oil prices and projected increases in offshore exploration and production spending.
“We are pleased to report that our team continues to deliver an improved set of results for the full year ended Dec 31, 2022 despite the competitive operating environment,” says Lim Ah Cheng, executive chairman and CEO of Dyna-Mac. “We would like to thank our employees and subcontractor partners for their hard work and commitment throughout the year.”
“Looking forward, 2023 will continue to be a busy year for Dyna-Mac as we are gradually ramp up production capacities to meet growing demands. Our team will continue to remain focused on ensuring that all our projects are completed within budget and on schedule and meeting high standards of quality, safety and reliability,” he adds. “Dyna-Mac will be on the lookout for opportunities to further expand our yard and business operations and to position the Group to pursue new businesses to achieve sustainable growth. We will also explore inorganic growth opportunities.”
Shares in Dyna-Mac closed 0.3 cent higher or 1.55% up at 19.6 cents on Feb 21.
