Keyfield International (KEYFIELD) has delivered impressive results for the first half of FY24, surpassing expectations with record-breaking performance. The company achieved a core net profit of RM100.3 million, a significant 169% increase year-on-year, driven by higher charter rates, increased vessel utilisation, and a strong contribution from third-party vessels. This result represents 66.2% of our full-year forecast, reflecting robust operational performance.
Analysts have raised their FY24 and FY25 net profit forecasts by 26% and 4%, respectively, adjusting average DCR assumptions to RM120,300 for FY24 and RM130,300 for FY25, with OUTPERFORM call. The target price has been lifted by 4% to RM3.18, based on an 11x FY25 price-to-earnings ratio, reflecting the company's premium positioning due to its younger fleet and higher specifications.
Revenue surged by 89% year-on-year, propelled by a 20% increase in daily charter rates (DCR) and a rise in vessel utilisation to 96.9% from 93.8% the previous year. The addition of third-party vessel revenue saw a dramatic 257% increase in charter days, driven by heightened demand for anchor handling tug & supply (AHTS) vessels following KEYFIELD's appointment as an AHTS panel contractor for Petronas in April 2024. The company also declared an interim dividend of RM0.03 per share, bringing the cumulative dividend to RM0.04.
Quarter-on-quarter, KEYFIELD's topline grew by 87%, reflecting seasonal peaks in vessel utilisation post-monsoon and increased DCR. Core profit rose by 131%, with operating costs increasing at a slower pace.
The offshore provider is poised for continued growth as it enters the peak season for the offshore support vessel (OSV) market. The recent addition of the Keyfield Itqan and Keyfield Aulia to the fleet is expected to enhance income from the fourth quarter of FY24 onwards. The company's fleet expansion and continued high DCRs are expected to drive further earnings growth, with supply remaining tight and client demand increasing.
