Dyna-Mac H1 profit surges on better utilisation of capacity, improved productivity
Yong Jun Yuan
MAINBOARD-LISTED Dyna-Mac Holdings , which fabricates topside modules and structures for the offshore oil and gas industry, saw its net profit more than treble to S$10.1 million for the first half of 2023, from S$3.1 million a year earlier.
This comes as revenue grew 46.9 per cent to S$182.3 million in the same period, from S$124 million a year ago.
In a bourse filing on Tuesday (Aug 8), the company attributed the revenue growth to higher progressive recognition of projects executed in the first half of this year.
The group also saw higher margins due to better utilisation of capacity as it intensified land use, improved productivity and tightened cost controls.
Meanwhile, the company also saw other income rise 40 per cent to S$3.5 million year-on-year as a result of higher interest income, although it was partially offset by a decrease in government grants.
Although the global geopolitical and economic environment remains fragile, the group said it remains optimistic about offshore oil and gas activities.
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It added that it is pursuing a JTC lease for a piece of land along Gul Road, and has been granted a temporary occupation licence for soil investigation purposes.
The land will provide additional capacity for current and future projects, such as carbon capture and storage, as well as hydrogen or ammonia’s exotic piping.
As at June 2023, the group has a net order book worth S$542.7 million.
Dyna-Mac shares closed down 1.2 per cent or S$0.005 at S$0.41 on Tuesday, before the results were released.
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