[RAM] RAM Ratings affirms Keyfield's AA3 IMTN rating; outlook stable

RAM Ratings has affirmed the AA₃/Stable rating on Keyfield International Berhad’s (Keyfield or the Group) RM1 bil Islamic Medium-Term Notes (IMTN) Programme (2024/2054), reflecting the Group’s strong market position and financial profile, underpinned by its balance sheet strength and resilient debt protection metrics.

Keyfield is a leading provider of offshore support vessels (OSVs) to Malaysia’s oil and gas sector, with a particular focus on accommodation work boats or barges. The Group’s competitive advantage is underpinned by its strong operating performance, a young fleet with an average age of eight years (versus the industry average of  13.2 years), and strong presence in the Dynamic Positioning 2 (DP2) vessels segment, owning seven of the 12 available domestically. 

Keyfield’s top line jumped 59.6% y-o-y to RM687.2 mil in FY Dec 2024 (FY Dec 2023: RM430.5 mil), exceeding our expectations due to higher utilisation rates and increased daily charter rates. Operating profit margins also remain healthy at 52.3% in FY Dec 2024, well above its peers. However, softer demand for OSVs amid lower oil prices and scheduled vessel maintenance caused revenue to decline 32.8% y-o-y to RM351.1 mil in 9M FY Dec 2025 (9M FY Dec 2024: RM522.2 mil). Gearing ratio and funds from operation debt coverage ratio stood at 0.31 times and 0.84 times, respectively as of end-September 2025, reflecting a strong balance sheet and robust debt-servicing capacity.

To mitigate risks associated with the cyclical domestic OSV market, which is closely tied to the activities of national oil company Petronas Nasional Berhad, Keyfield is diversifying both geographically and sectorally. Initiatives include deploying vessels to the Middle East and expanding into the submarine power cable laying segment. While domestic OSV demand is anticipated to remain relatively stable after following a peak in 2024, recent declines in crude oil prices may exert further pressure on the market over the near term. We nevertheless expect the Group’s solid financial profile to enable it to withstand challenging market conditions.


Analytical contacts
Chew Wei Li
(603) 2708 8301
weili@ram.com.my

Thong Mun Wai
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munwai@ram.com.my

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