By SULHI KHALID / Pic By dialogasia.com
DIALOG Group Bhd’s net profit rose 43.6% year-on-year (YoY) to RM164.64 million in the first-quarter financial year ended Sept 30, 2019 (1QFY20) from RM114.64 million recorded the year prior, on healthy performances across its business operations.
However, the integrated technical service provider’s revenue declined 6.5% YoY to RM645.76 million in 1Q20 from RM690.89 million previously, it said in an exchange filing yesterday.
The group’s international operations also recorded a higher net profit after tax in the current financial quarter, contributed by higher engineering and construction activities and increased specialist products and services sales.
Moving forward, the ongoing development of Pengerang Deepwater Terminals (PDT) will continue to take centre stage in the midstream sector.
“PDT offers a compelling value proposition for the establishment of strategic hub operations given its ideal location and one-stop integrated hub offering.
“The construction of a storage terminal, common tankage facilities (including shared infrastructure) and deepwater marine facilities (Jetty 3) have also begun and completion is expected in mid-2021,” the group said.
Approximately another 500 acres (202.3ha) is available for development, the technical service provider is still in the early stages of developing PDT into the largest petroleum and petrochemical hub for the Asia-Pacific region.
Meanwhile, in the downstream sector, the group will continue to leverage on its established track records in integrated technical services comprising engineering, procurement, construction and commissioning, plant maintenance and catalyst handling services, and specialist products and services.
On the upstream side, the group continues to develop new reserves from existing contracts.
At the same time, it’s actively looking for opportunities to increase its development and production services and assets.
In July this year, the group secured a Groupwide Master Service Agreement from Petroliam Nasional Bhd (Petronas), the national oil firm.
The agreement covers integrated plant turnaround works and daily maintenance work on mechanical static for Petronas’ plants group-wide.
“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,” it said.
Shares of Dialog closed 0.29% or one sen lower yesterday at RM3.43, valuing the group at RM19.35 billion.
The group provides a range of services including logistics, engineering and construction, fabrication, and maintenance.