Higher profit attributed to the completion of major projects, improved productivity and increase in volume of projects undertaken
OFFSHORE oil and gas contractor Dyna-Mac Holdings’ net profit more than doubled to S$38.8 million for the first half of 2024, from S$10.2 million in the corresponding period earlier.
In a bourse filing on Tuesday (Aug 6), the company attributed the higher profit to the completion of major projects, improved productivity and increase in volume of projects undertaken.
This comes as revenue grew 42.5 per cent to S$259.7 million in H1, from S$182.3 million a year ago. The revenue growth was due to the completion of major projects during the first half of the year, it said.
The company also achieved a healthy increase in other income, totalling S$7.6 million in H1 2024, which was a 116.3 per cent increase from S$3.5 million in H1 2023. The rise was mainly due to higher interest income, forex gain and increases in scrap income.
The company said it remains optimistic on the future growth opportunities for its floating production storage and offloading vessels operations, supported by its current order book, which stands at S$681.3 million as at end-June with deliveries scheduled till FY2026.
It is also looking to strengthen its market position by exploring opportunities in adjacent sectors, including carbon capture and storage technologies, and hydrogen solutions.
The company’s recent acquisition of Exterran Offshore and the securing of JTC land adjacent to the current facility has led to the expansion of capacity and upgrading of yard facilities. This has provided the company with the flexibility and capability to pursue larger contract-sized projects to further build on its order book, boost productivity and strengthen its operational capabilities, it added.
Dyna-Mac shares closed at S$0.52, up 3 per cent or S$0.015 on Tuesday, before the results were released.
