Dialog Group quarterly net profit up 18percent to RM137mil on cost savings
15 Feb 2019
Source: The Star
PETALING JAYA: Dialog Group Bhd's net profit for the second quarter ended Dec 31 jumped 18.2% to RM136.8mil.
This was despite a 28.9% decrease in revenue from RM857.4mil in the previous corresponding quarter to RM609.6mil.
The oil and gas services provider said revenue was lower mainly due to the near-completion of engineering, procurement, construction and commissioning works in the Pengerang Deepwater Terminal (PDT) phase two projects.
Net profit was higher as a result of cost savings realised on completed projects and an increased profit share in joint ventures and associates for the quarter.
The group's operating profit including joint ventures and associates of RM258.3mil was 18% higher than the corresponding period of last year. Basic earnings per share for the quarter was 18.5% higher at RM2.43.
The ongoing operations of PDT phase one is being expanded by 430,000 cu m while phase two, the dedicated petroleum and petrochemical terminal for the Refinery and Petrochemical Integrated Development (Rapid) project, commenced its initial stages of commercial operations in November last year.
Dialog is also expanding Langsat Terminal (Three) Sdn Bhd into a 300,000-cu m storage facility in addition to Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd's capacity of 647,000 cu m.
Executive chairman Tan Sri Dr Ngau Boon Keat said in a statement that the group is pleased to have continued to deliver on its commitment to grow sustainable, recurring income and enhance shareholder value.
"With the completion of the PDT Phase 2A and 2B and the refinery projects at Rapid, we are now actively involved in the plant maintenance services for these projects.
"The group has continued to make progress for phase three as well. Land-reclamation activities are in progress and scheduled for completion at end 2019," he said.