Revenue for the quarter declined 3.3% YoY to RM522m from RM540m recorded last year 

By SHAHEERA AZNAM SHAH 

DIALOG Group Bhd’s earnings fell 11.6% year-on-year (YoY) in its fourth-quarter ended June 30, 2021 (4Q21), to RM138.54 million due to lower revenue from its Malaysia’s operations as it prioritised internal midstream terminal assets. 

Revenue for the quarter declined 3.3% YoY to RM522.14 million from RM539.94 million recorded last year. 

Its earnings per share for the quarter fell to 2.46 sen from 2.78 in 4Q20. 

The oil and gas services provider closed the financial year with net profit dropping 13.8% YoY to RM543.14 million and revenue down 30.1% YoY to RM1.61 billion. 

The group’s operations continued to be busy with the development of its internal midstream assets. 

The construction works on 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 the end-2021. 

“The focus on the development of the group’s own internal midstream terminal assets during the financial year resulted in the lower reported revenue for Malaysia operations,” Dialog stated in an exchange filing yesterday. 

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

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 a storage capacity of 430,000 cu m dedicated to BP Singapore Pte Ltd has commenced its commercial operations in March 2021,” it said. 

Dialog’s revenue from international operations declined due to reduced business activities amid the Covid-19 pandemic. 

However, net profit was higher, mainly contributed by fabrication activities. 

Dialog intends to focus on integrated technical services comprising engineering, procurement, construction and commissioning and plant maintenance and catalyst handling services, and specialist products and services in the downstream sector. 

“With the completion of Pengerang Deepwater Terminals Phase 2 and the refinery projects at Refinery and Petrochemical Integrated Development, we are now actively involved in the plant maintenance services for both new and existing plants in the region,” it said. 

Dialog is taking a proactive measure in cashflow management of its upstream assets due to the disruption in demand for petroleum products caused by the pandemic. 

The group remains optimistic about the upstream sector despite an extremely challenging environment and is confident it will continue to contribute positively to the group’s results. 

“Barring any unforeseen circumstances, the group is confident its performance will remain profitable for the financial year ending June 30, 2022,” it said.