Keyfield Forecasts Stable DCR, Eyes OSV Market Upside Despite Global Challenges – Kenanga IB

KUALA LUMPUR, April 16 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) expects Keyfield International Bhd’s daily charter rate (DCR) in the local offshore support vessel (OSV) market to remain stable or slightly lower year-on-year, supported by tight supply and rising demand despite global macroeconomic challenges.

Nevertheless, the investment bank has maintained a positive view on Keyfield, citing its more competitive fleet based on vessel age and specifications.

“We believe it will be one of the first to capture potential upsides in the OSV market when the global macro environment recovers.

“The group is also targeting its non-oil and gas vessel segment to contribute approximately 20 per cent of total revenue in the medium term, in line with its strategy to reduce reliance on the upstream oil and gas cycle,” Kenanga IB said in a research note today.

On Monday, Keyfield acquired a 2023-built cable-laying barge — to be renamed Keyfield Blessing — for US$20.6 million (RM90.8 million) from Taizhou Sanfu Ship Engineering. The acquisition includes a one-year bareboat charter agreement, with an optional one-year extension, valued at US$9.1 million assuming full-term execution, with Dejing Group.

Kenanga IB also raised its earnings forecasts for Keyfield’s financial years 2025 (FY2025) and 2026 (FY2026) by five to six per cent, reflecting accretive income from Keyfield Blessing, assuming a DCR of RM56,000 for bareboat charter.

“For charter durations, we assume eight months and 12 months, respectively, for FY2025 and FY2026,” it added.

-- BERNAMA