Dialog’s 3Q earnings down to RM136m

by HARIZAH KAMEL / graphic by MZUKRI MOHAMAD

DIALOG Group Bhd’s earnings for the third quarter ended March 31, 2021 (3Q21), contracted 9.85% year-on-year (YoY) to RM136.17 million as revenue fell to RM405.17 million from RM505.43 million posted in the same period last year.

The focus on the development of the group’s own internal midstream terminal assets during the quarter resulted in the lower revenue for its Malaysian operations.

The construction works of the 430,000 cu m storage capacity under Phase 3A of Pengerang Deepwater Terminals was completed in March 2021 as scheduled, while the 85,000 cu m capacity expansion of Dialog Terminals Langsat 3 is scheduled for completion by end-2021.

Earnings per share for the quarter was 2.41 sen, while revenue fell 19.84% YoY to RM405.18 million due to the group’s focus on the development of its internal midstream terminal assets for Malaysian operations.

Despite the lower revenue and net profit reported in the downstream activities, Dialog saw increased contributions from its recurring income business such as midstream terminals.

The storage capacity of Dialog Terminals Langsat and Pengerang Independent Terminals Sdn Bhd, at 770,000 cu m and 1,780,000 cu m respectively continued to be fully leased out.

The newly commissioned Dialog Terminals Pengerang 5 with storage capacity of 430,000 cu m dedicated to BP Singapore Pte Ltd commenced its commercial operations in March 2021, the company stated in its exchange filing yesterday.

On the international front, revenue reported for the quarter was lower than the corresponding quarter last year, due to reduced business activities as a result of the challenging market and economic downturn due to the prolonged Covid-19 pandemic.

Net profit from international operations was higher contributed by favourable performance from fabrication activities, the company noted.

Dialog is confident it will remain profitable for the financial year ending June 30, 2021 (FY21), as its business model is well-structured to manage and sustain through periods of economic uncertainty, oil price volatility and currency movements.

The group has reviewed both its capital expenditure and operating expenses, as well as implementing ongoing cost-reduction measures without jeopardising its operations and service delivery to customers.

Dialog declared an interim dividend of 1.2 sen per ordinary share, to be paid on June 29, 2021.