Dialog net profit up to RM94mil on JVs - The Star

Dialog net profit up to RM94mil on JVs
17 May, 2017
Source: The Star


Group also posts 42.2% higher revenue for Q3
"Further development of the Pengerang Deepwater Terminal will provide more opportunities for us."

PETALING JAYA: Dialog Group Bhd saw its net profit for the third quarter ended March 31 jump 19.6% to RM94.4mil, boosted by higher contributions from its joint ventures (JVs), particularly in the Pengerang Independent Terminals.

The group also reported a 42.2% higher revenue for the quarter to RM913.6mil.

In its announcement to the stock exchange, the group said its share of JV results for the quarter rose by 90.7% year-on-year to RM28.6mil from RM15mil last year.

It said its Malaysian operations remained busy during the quarter with engineering, construction and fabrication activities from various ongoing projects such as the Pengerang Deepwater Terminal Phase 2, Jetty Topside works for Samsung in Pengerang and the construction of a plasticiser plant for UPC Chemicals in Kuantan.

"The group's international operation also recorded higher revenue in the current financial quarter against the same quarter last year, attributed to increased engineering and construction activities in Singapore and higher sales in specialist products and services in India, Russia and the Middle East," it added.

Dialog Group, which is an integrated technical services provider to the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry, said the higher revenue from its Malaysian and international operations had resulted in a higher net profit after tax for the group.

Year-to-date, the group's net profit was also up 23.1% to RM267.1mil, while revenue jumped 33.4% to RM2.4bil.

Moving forward, the group said it was confident that its business model was well-structured and could withstand the current oil price volatility and currency movements.

The group said it would continue looking for new opportunities to enhance its recurring income streams.

"With the ongoing operations of Pengerang Deepwater Terminal phase one and the current construction of phase two, the group is now working towards securing new potentiS partners for phase three, which will include the development of more petroleum and petrochemical storage terminals.

"Further development of the Pengerang Deepwater Terminal will provide more opportunities for us," it said.

It added that it was also developing an industrial estate with a land area of about 170 acres to support the development of further downstream petroleum and petrochemical industries in Pengerang.

In the upstream sector, the group said it was on the lookout for viable production assets for possible acquisition.

"Barring any unforeseen circumstances, the group is optimistic that it will continue to deliver a healthy performance for the financial year ending June 30, 2017," it said.