Friday 29 Mar 2024
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KUALA LUMPUR (May 12): Dialog Bhd’s net profit surged 65.2% to RM81.8 million for the third quarter ended March 31, from RM49.5 million in the corresponding quarter, despite perceived gloomy prospects of the oil & gas industry.

Dialog attributed the jump on Dialog’s earnings to contributions from its upstream activities, mainly as a result of production sharing contract (PSC) operations for three fields D35, D21 and J4, located offshore Sarawak.
 
Its quarterly revenue grew 4.9% to RM669.8 million, from RM638.3 million a year ago.

In a statement to Bursa Malaysia, Dialog (fundamental: 2.1; valuation: 0.5) declared an interim single tier dividend of 10% per share of 10 sen each for the financial year ending June 30, 2015.

For the nine-month period, net profit grew 29.3% to RM211.5 million, from RM163.6 million in the same period last year, but revenue fell 6.6% to RM1.78 billion, from RM1.91 billion a year earlier.

Besides better results in upstream activities, Dialog recorded higher fabrication activities in various projects during the current period. However, the better results were offset by lower sales in specialist products and services, it said.

On the International front, Dialog said revenue for both current quarter and year-to-date were lower by 21%, against the same period last year.

This was mainly attributable to low activities in engineering, construction and plant maintenance in Singapore, fabrication in Australia and New Zealand, and lower sales of specialist products and services in India and Brunei.

On prospects ahead, Dialog is working towards securing new potential partners for subsequent phases of the Pengerang Deepwater Terminal, which include the development of more petroleum, petrochemical and LNG storage facilities.

It said development activities are also being aggressively pursued for the D35, J4 and D21 fields, to rejuvenate and increase oil production under the PSC.

Dialog ended down 1 sen or 0.6% to RM1.60 today, giving it a market capitalisation of RM8.09 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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