Dialog profit jumps by a third

17 Aug 2017
Source: The Star

Full-year earnings and revenue also surge to a new high

PETALING JAYA: Oil and gas contractor Dialog Group Bhd said its net profit in the fourth quarter ended June 30 jumped by almost a third to RM103.5mil, lifting its fullyear earnings to a new high of RM370.6mil.

Revenue for the full year climbed 34% to RM3.39bil.

The group, in a filing with Bursa Malaysia, said its performance during the year was underpinned by tank farm and deepwater terminal joint-venture projects in Johor.

"With the ongoing operations of the Pengerang Deepwater Terminal Phase 1 and the current construction of Phase 2, the group is now working towards expanding Phase 1 as well as securing new potential partners for Phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals," it said.

The group said it is optimistic that it will continue to deliver a "strong performance" for the financial year ending June 30, 2018.

It added that Phase 3 of the terminal project and future phases will be developed on approximately 800 acres comprising reclaimable land and the buffer zone.

"Further development of the Pengerang Deepwater Terminal will provide more opportunities for the group's engineering, construction, fabrication and plant maintenance services," it said.

In the upstream sector, Dialog said it is actively developing new reserves from the existing contracts.

"At the same time, the group is also on the lookout for viable production assets, which may become available for possible acquisition," it said.

During the financial year under review, Dialog said its midstream and downstream segments in Malaysia were busy with activities in the engineering, construction and fabrication works from various ongoing projects such as the Pengerang Deepwater Terminal Phase 2, Jetty Topside works for Samsung in Pengerang and the construction of the plasticiser plant for UPC Chemicals in Kuantan.

"These well-executed activities had contributed to the higher results delivered by the Malaysian operations despite the slower upstream activities experienced during the financial year," it said.

The group's international operation also recorded better performance in the current financial year compared to last year, primarily driven by the increased downstream activities in Singapore and Saudi Arabia.

Dialog is one of the country's leading integrated technical services provider to the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry.

The company said it is "confident that its business model is well structured and can withstand" the current oil price volatility and currency fluctuations.

"The group's financial track record has proven that the business is well risk-managed and sustainable," it said.