Dialog 3Q earnings up 20pc on stronger JV results - The Edge Financial Daily


Dialog 3Q earnings up 20pc on stronger JV results
17 May, 2017
Source: The Edge Financial Daily

 

Dialog 3Q earnings up 20% on stronger JV results
BY SUPRIYA 5URENDRAN

KUALA LUMPUR: Dialog Group Bhd's net profit for the third financial quarter ended March 31,2017 (3QFY17) rose 20% to RM94.4 million from RM79.92 million a year ago, on higher contributions from the group's joint ventures (TVs), particularly from the Pengerang Independent Terminals.

Its share of JV results for the quarter climbed91% to RM28.6 million from RM15 million a year ago, it said in a Bursa Malaysia filing yesterday. Overall 3QFYI7 revenue grew 42% to RM913.6 million from RM641.4 million.

It declared a dividend of 1.2 sen per share, to be paid on June 29, compared with the one sen it paid out for 3QFYI6.

Dialog said its operations in Malaysia stayed busy during 3QFY17, with engineering, construction and fabrication activities from various ongoing projects, such as Pengerang Deepwater Terminal Phase 2, jetty topside works for Samsung in Pengerang, and the construction of a plasticiser plant for UPC Chemicals i (M) Sdn Bhd in Kuantan.

Its international operations also recorded higher revenue due t to increased engineering and construction activities in Singapore, and higher sales of specialist products and services in India, Russia and the Middle East.

For the nine months ended March 31,2017, net profit climbed 24% to RM267.91 million from RM217 million, while revenue gained 33% to RM2.42 billion from RM1.S2.

On prospects, Dialog said with the ongoing operations of Pengerang Deepwater Terminal Phase and current construction of Phase 2, the group is now working towards securing new potential partners for Phase 3, which will include the development of more petroleum and petrochemical storage terminals.

Further development of the terminal will provide more opportunities for its engineering, construction, fabrication and plant maintenance services, it said

The group is also developing an industrial estate of about 170 seres (63.8ha) that would support the development of further downstream petroleum and petrochemical industries in Pengerang.

As for upstream, it is on the Lookout for viable production assets for acquisition. It is optimistic about continuing to deliver a healthy performance for full FY17.


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