KUALA LUMPUR (Feb 14): Dialog Group Bhd’s net profit in the second quarter of financial year ended Dec 31, 2017 (2QFY18) grew 26.71% to RM115.76 million compared with RM91.36 million a year earlier thanks to its Malaysian operations and higher contributions from its joint ventures (JVs) and associates.

In a filing with Bursa today, Dialog explained that in November last year, its associate company — Pengerang LNG (Two) Sdn Bhd achieved its commercial operation and received the first commercial Liquefied Natural Gas (LNG) cargo at its newly commissioned regasification terminal at the Pengerang Deepwater Terminal.

Quarterly revenue came in flat at RM857.43 million from RM856.78 million.

The integrated technical services provider to the upstream, midstream and downstream sectors in oil, gas and petrochemical industry said the revenue from its Malaysian operations increased by 9.5% contributed by the midstream and downstream activities in particular engineering, construction and plant maintenance services for various projects.

In line with the higher revenue, the net profit contribution from Malaysian operations for the current reporting quarter grew by 24.9%, according to Dialog.

Dialog’s 2Q net profit rose 27% on higher contribution from Malaysian operations and JVs. For the cumulative six-month period ended Dec 31, 2017 (6MFY18), Dialog’s net profit rose 60.22% to RM276.69 million from RM172.69 a year ago. Revenue clocked in 8.33% higher at RM1.64 billion in 6MFY18 against RM1.51 billion previously.

Outside Malaysia, Dialog’s operations remained challenging in 2QFY18 contributed by lower sales of specialist products and services in India, Russia, and Australia, reduced engineering and construction activities in Singapore and fabrication activities in Australia and New Zealand.

Going forward, Dialog remains confident that its strategy and well-structured business model can withstand the current oil price volatility and currency movements.

“The group's financial track record has proven that Dialog’s business is well risk-managed and sustainable,” it said.

Dialog said the on-going operation of the 1.3 million m3 Pengerang Deepwater Terminal Phase 1 is now being expanded by an additional 430,000 m3.

“The construction of Phase 2 is on schedule. We are also securing new potential partners for Phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals,” it added.

Dialog’s shares closed five sen or 1.92% higher at RM2.66, with 8.06 million shares done, giving it a market capitalisation of RM14.99 billion. Over the past 12 months, the counter has gained about 73.7%.