Dyna-Mac net profit down 18.4% in Q3 amid intense competition

DYNA-MAC Holdings, which fabricates topside modules for the oil and gas industry, has posted a net profit of S$142,000 in the third quarter, down 18.4 per cent from the same period a year earlier. 

Revenue in the three months ended Sept 30 fell 6.6 per cent to S$36.2 million, due mainly to higher project progress achieved in the third quarter last year compared to this one.

Dyna-Mac had a net order book of S$96.3 million as at Sept 30, comprising existing and new projects with completion and deliveries extending into the third quarter of 2020.

On Monday, Dyna-Mac once again assured shareholders that it is business as usual. Dyna-Mac's founder Desmond Lim passed away on Oct 26 and the board will give an update in due course once a new chairman and chief executive is appointed. 

Dyna-Mac added that it is encouraged by the increase in enquiries received from long standing customers and new potential customers, though the market remains challenging with intense competition. "We are navigating the current market conditions cautiously and strive to manage our costs to align with our level of business activity and to position ourselves for new business opportunities."

Third-quarter earnings per share was 0.01 Singapore cent, down from 0.02 Singapore cent in the third quarter last year.

Net asset value per share was 10.34 Singapore cents as at Sept 30, from 10.24 Singapore cents as at Dec 31 last year.

Dyna-Mac shares rose 0.1 Singapore cent or 0.7 per cent to S$0.143 on Monday before results were released after market close.