Kuala Lumpur: Keyfield International Bhd, an offshore support vessel (OSV) provider, is adopting a cautiously optimistic outlook for the financial year ending December 31, 2025 (FY2025), despite a slower-than-usual start to the year and broader macroeconomic uncertainties.
According to BERNAMA News Agency, Group Chief Executive Officer and Executive Director Datuk Darren Kee Chit Huei said the company’s performance would continue to hinge on fleet size, utilisation rates, and daily charter rates, which are the key metrics that drive both revenue and profitability. Kee emphasized these factors as essential for increasing revenue and maintaining the company’s bottom line.
For the first quarter ended March 31, 2025 (1Q2025), Keyfield International posted a lower net profit of RM20.68 million compared with RM30.30 million in the same period last year, while revenue declined by 18.5 per cent to RM86.75 million from RM106.39 million, mainly due to reduced vessel revenue. The group’s revenue from its vessels fell by 10.3 per cent, or RM8.3 million, to RM72.6 million from RM80.9 million year-on-year, while revenue from third-party vessels declined by RM11.4 million (44.7 per cent) to RM14.1 million.
Kee noted that while FY2024 was a strong year, FY2025 started slowly due to monsoon season disruptions, which typically result in lower vessel utilisation during the first quarter. He explained that this is a common issue faced by all vessel companies during this period, highlighting that several of their vessels were still operational despite the challenges.
Despite global uncertainties, including the ongoing tariff war and a slight decline in oil prices, Kee said business operations remained unaffected. He affirmed that there was nothing adversely affecting their vessels currently, and noted that Keyfield International’s exposure to overseas income was minimal.
Addressing scheduled vessel dry docking in the first quarter, Kee said the company has intentionally chosen this off-peak period to minimise financial impact, although he acknowledged that delays at Labuan Shipyard had posed challenges. Geographically, 95 per cent of Keyfield’s operations are in Malaysia, with vessels active in Sabah, Sarawak, Kemaman, and the joint development area between Malaysia and Thailand. The company also operates in India and the Middle East.
Recently, Keyfield International’s subsidiary Keyfield Offshore Sdn Bhd entered into a memorandum of understanding with PT Elnusa Trans Samudera (ETSA) to explore marine services opportunities in Indonesia’s oil and gas sector. Kee revealed the acquisition of a cable-laying barge set to begin work in Saudi Arabia as part of plans to increase international presence, aiming to expand further into the Middle East.
On the local OSV sector, Kee pointed to an ageing fleet and a potential shortage of vessels as reported by Petronas. He highlighted Keyfield’s advantage with its younger fleet, countering the trend of limited investment in new OSVs by other players. Keyfield currently owns 15 vessels with an average utilisation rate of 80.4 per cent last year, although a slightly lower rate is anticipated for FY2025 due to the slow start and dry-docking schedules. Kee mentioned that current contracts in hand total RM420 million.
Discussing the company’s capital strategy, Kee noted that Keyfield raised RM200 million through a sukuk issuance last December, part of a RM1 billion AA3-rated sukuk programme. The company has not fully utilised these bond proceeds and maintains a clean balance sheet with strong internal cash flow. Keyfield targets a 20 per cent net profit payout as dividends, although last year’s payout was around 39 per cent. For FY2024, the total dividend payout was 11 sen per share, representing a payout ratio of 38.9 per cent, nearly double the initial target.
Kee also expressed the company’s intention to diversify into non-oil and gas sectors, aiming for such activities to contribute around 20 per cent of total revenue in the medium term. The newly acquired cable-laying barge in Saudi Arabia marks a step towards this goal. Kee reiterated a ‘cautiously optimistic’ stance on the OSV market, noting stable demand for accommodation vessels due to their essential role in offshore maintenance, affirming their continued bullish outlook despite fluctuating oil prices.