Destini Falls 5.6% As Net Profit Halved In 4Q

KUALA LUMPUR (Feb 28): The share price of shipbuilder and maintenance provider Destini Bhd dropped by 5.6% to 59 sen as at 11.30am today as its net profit more than halved to RM5.65 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from
RM11.99 million a year earlier.

The group’s net profit for the whole year also dropped by 7% to RM30.7 million, despite almost doubling its revenue to RM685.6 million during the year, as it recognised contributions from an increase in aviation and marine activities.

“In FY2017, Destini saw commendable performance from [its] aviation business which took on as the highest contributor to the group in terms of profit,” said Destini in a statement accompanying the results, which was announced late Tuesday.

“This came from its maintenance, repair and overhaul services as well as the supply of six reconnaissance helicopters by the Ministry of Defence for the Malaysian Armed Forces,” the statement added.

Destini is currently sitting on an orderbook of RM935 million, mostly from its contract to build three offshore patrol vessels for the Malaysian Maritime Enforcement Agency (MMEA) in a partnership with TH Heavy Engineering Bhd.

Its board of directors has also approved a dividend policy of between 30% and 40% of its net income of any financial years.

Minister of Finance Inc unit Aroma Teraju Sdn Bhd is the second-largest shareholder in the engineering specialist firm.