PETALING JAYA: Dialog Group Bhd’s net profit for the first quarter ended Sept 30, 2019 jumped 43.6% to RM164.64 million from RM114.64 million a year ago, contributed by strong performance of all activities within the Malaysian operations.
The group’s share of profit on joint ventures and associates was also higher. The international operations also recorded a higher net profit while the group booked a RM28.5 million non-cash fair value gain arising from business combination of a jointly controlled entity to a subsidiary.
However, its revenue dropped 6.5% to RM645.76 million compared with RM690.89 million in the corresponding quarter last year.
Dialog said it remains confident that its business model is well structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements.
Looking forward in the midstream sector, the group said the ongoing development of Pengerang Deepwater Terminals (PDT) will continue to take centre stage.
With Phase 1 and Phase 2 of PDT already in operation, the entry into the long-term storage agreement with BP Singapore Pte Ltd for Phase 3 of PDT is expected to catalyse the further development of PDT in the coming years.
The Phase 3 land reclamation progress remains on track and is scheduled for completion at the end of 2019. The construction of a storage terminal, common tankage facilities and deepwater marine facilities have also begun and completion is expected in mid-2021.
In the downstream sector, Dialog will continue to leverage on its strengths and established track record in integrated technical services comprising engineering, procurement, construction & commissioning, plant maintenance & catalyst handling services, and specialist products and services.
In the upstream sector, the group continues to develop new reserves from the existing contracts and at the same time, actively looking for opportunities to increase our development and production services and assets.
Barring any unforeseen circumstances, the group is confident that its performance will remain on a positive trajectory for the financial year ending June 30, 2020.
