Further to the shareholders\u2019 approval at the Extraordinary General Meeting convened on 21 June 2017, Daya Materials Berhad (\u201cDMB\u201d or the \u201cGroup\u201d) has today completed the disposal of its offshore subsea construction vessel, Siem Daya 1 (\u201cSD1\u201d) via the disposal of the Group\u2019s wholly-owned subsidiary, Daya Global 1 Pte Ltd (\u201cDG1PL\u201d) to Siem OCV Pte Ltd (\u201cSiem OCV\u201d), an indirect wholly-owned subsidiary of Siem Industries Inc for a total consideration of USD$100 million (equivalent to approximately RM418.5 million).\u00a0<\/p>\n
The disposal of SD1 marks the Group\u2019s exit from its offshore subsea business and is a strategic move for DMB to strengthen the financial position of the Group as the disposal will significantly reduce the Group\u2019s debts by approximately 62% or RM406.9 million from RM660.0 million (as at 31 December 2016) to RM253.1 million, resulting in a significant reduction in its gearing level, as well as enhancing its financial position.\u00a0\u00a0<\/p>\n
The completion of this disposal will also relieve the Group\u2019s interest expense of approximately RM19 million per annum.\u00a0 Further, all vessel-related operating expenses and depreciation will be eliminated completely, whereby during the last financial year 2016, these expenses amounted to RM35 million.\u00a0<\/p>\n
\u201cThis is the beginning of our turnaround plan and we are both optimistic and excited about the Group\u2019s future. Our exit from the offshore subsea business will allow us to focus on our core and profitable businesses and our financial results will no longer be dragged down by this loss-making business. We are now channelling the Group\u2019s resources into infrastructure, especially rail-related projects and are in the midst of negotiating with the relevant parties to secure contracts relating to rail engineering.\u00a0 The successful completion of those negotiations and implementation of those contracts will contribute positively to the Group\u2019s earnings over the next few years.\u00a0 In line with our strategy, our wholly-owned subsidiary Daya OCI Sdn Bhd had on 15 September 2017, entered into a Memorandum of Understanding with Mimos Semiconductor Sdn Bhd, a wholly-owned subsidiary of MIMOS Berhad to collaborate in the provision of a crowd management and passenger system, comprising of information technology data transfer, security information capabilities, monitoring, management and recording of mass people and materials movement for rail or non-rail services systems.\u00a0 Going forward, we foresee the Group\u2019s earnings drivers to be coming from the infrastructure, construction and downstream oil and gas segments.\u00a0 We will be looking to further strengthen our position in the construction sector which has been a profitable segment of the Group.\u00a0 We are also expecting our downstream oil and gas business to continue to perform well given its positive contribution to the Group\u2019s profitability, on the back of our established performance track record and market presence.\u201d said Group Chief Executive Officer, Datuk T. S. Lim.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Further to the shareholders\u2019 approval at the Extraordinary General Meeting convened on 21 June 2017, Daya Materials Berhad (\u201cDMB\u201d or the \u201cGroup\u201d) has today completed the disposal of its offshore subsea construction vessel, Siem Daya 1 (\u201cSD1\u201d) via the disposal of the Group\u2019s wholly-owned subsidiary, Daya Global 1 Pte Ltd (\u201cDG1PL\u201d) to Siem OCV Pte […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-1065","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=1065"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1065\/revisions"}],"predecessor-version":[{"id":6177,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1065\/revisions\/6177"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=1065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=1065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=1065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}