Dialog’s earnings up 18% in 2Q

Dialog Group Bhd’s net profit for the second quarter ended Dec 31, 2018 (2QFY19) rose 18.16% year-on-year (YoY) to RM136.78 million due to lower operating expenses during the quarter.

In an exchange filing yesterday, the oil and gas service provider and storage terminal operator noted growth was achieved despite a 28.9% YoY decrease in revenue to RM609.6 million for the current quarter.

Revenue from the company’s Malaysian operations for the quarter was lower primarily due to near completion of the engineering, procurement, construction and commissioning works in the Pengerang Deepwater Terminal Phase 2 projects in Johor.

The segment’s net profit for the current quarter was higher mainly due to cost savings realised on completed projects and increased share of profit in joint ventures and associates.

Its international operation’s revenue was higher compared to the corresponding quarter last year, but recorded a lower net profit mainly due to reduced margins as a result of increased market competition.

Dialog executive chairman Tan Sri Dr Ngau Boon Keat said the group has continued to deliver on its commitment to grow sustainable recurring income and enhance shareholders’ value.

“The group has continued to make progress for Phase 3 as well — land reclamation activities are in progress and scheduled for completion at the end of 2019 — and we are in active discussions with potential customers for Phase 3,” he said in a statement yesterday.

Barring any unforeseen circumstances, the group is confident its performance will remain strong for the financial year ending June 30, 2019. — TMR