The Board of Directors of Dyna-Mac Holdings Ltd. (“Dyna-Mac” and together with its subsidiaries, the “Group”) wishes to announce that the Group has secured a fabrication project from China Merchants Heavy Industry (Jiangsu) Co. Ltd. (“CMHI”), for a total provisional contract sum of S$114 million.
The contract with CMHI is for the supply, fabrication and construction of topside modules to be executed by Dyna-Mac’s joint venture company (“JVCo”) in China.
The new contract award following JVCo’s successful completion and loadout of the FPSO SEPETIBA topside modules is a testament to the JVCo’s win-win partnership in providing a onestop solution, i.e. modules and vessel, for our clients. Beyond the partnership on FPSO topside modules, the Group is also working closely with CMHI to pursue LNG and green energy modules projects.
Adding this project from CMHI, the Group’s order book stands at S$442 million as at the date of this announcement, with deliveries up to year 2023.
Revenue increased by $55.0m from $51.4m in the first half year ended 30 June 2020 (“1H2020”) to $106.4m in the half year ended 30 June 2021 (“1H2021”). The increase was mainly due to higher progress achieved for the projects carried out in 1H2021 (as opposed to production stand-down in 2Q2020). Gross profit/(loss) improved from $0.3m gross loss in 1H2020 to gross profit of $11.5m in 1H2021. The gross profit was mainly due to higher recognition of revenue as stated above.
Cash and cash equivalents increased by $37.2m from $46.2m as at 31 December 2020 to $83.4m as at 30 June 2021 mainly derived from higher collection during the period
Notwithstanding the COVID-19 pandemic, the Group has benefitted from the resurgence of the FPSO market, illustrated through the various contracts won for a total amount of S$319m as announced in 1H2021 to date. With the recent fabrication contract award from China Merchants Heavy Industry (Jiangsu) Co. Ltd., the Group is also strengthening its the Project Management Team in China for contract execution. At the same time, the Group continues to explore projects in the green energy space
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