“Daya revealed that it is working on a very large fund-raising exercise comprising a 15% private placement, rights with warrants issuance, convertible bonds and senior debt financing worth a cumulative RM950mil,” it said in a research note following a meeting with the company.
Although the OSCVs are expected to cost $140mi each, Daya emphasised that it would reap savings of $15,000 per day per vessel under an ownership model compared with the current lease model. Daya's net gearing will rise to less than two times for 0.3 times currently after the fund raising exercise.
The research report also noted $9m in cost overruns Daya had incurred during the fourth quarter “attributable to human error” in capturing costs for its Tapis enhanced oil recovery (EOR) project. However with the Tapis EOR project nearly completed (96%) as at end-December 2013, Kenanaga expects no more cost overruns in 2014.
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