This article first appeared in The Edge Financial Daily, on May 19, 2016.

KUALA LUMPUR: Dialog Group Bhd, an engineering company in the oil and gas, petrochemical and chemical industries, reported that its net profit for the third quarter ended March 31, 2016 (3QFY16) fell by 3.58% to RM78.92 million, from RM81.85 million a year ago, due to slower upstream activities and lower sales of specialist products and services.

Earnings per share for the quarter declined to 1.52 sen, from 1.65 sen, its bourse filing yesterday showed, while revenue fell by 4.23% to RM641.40 million, from RM669.76 million a year ago.

The group declared an interim dividend of one sen per share for the quarter under review, which will be payable on June 28.

Dialog said its Malaysia operation remained busy with engineering, construction and fabrication activities from various ongoing projects, though these were partially offset by slower upstream activities and lower sales of specialist products and services.

Internationally, earnings were better than in 3QFY15, due to higher fabrication activities in New Zealand and engineering and construction activities in Singapore.

“The group’s share of joint-venture profit for the current quarter was also higher when compared to [the] same period last year. This was mainly attributable to increased contributions from Pengerang Independent Terminal, which has fully leased out its storage capacity since 1QFY16,” Dialog said.

For the nine months ended March 31, 2016 (9MFY16), net profit grew 2.6% to RM217 million or 4.22 sen per share, from RM211.5 million or 4.28 sen per share in 9MFY15.

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

“In addition, strong demand for storage facilities for petroleum products reinforces the group’s strategy to further develop and invest in Pengerang Deepwater Terminal for the long term,” it said, adding that it will continue to benefit from long-term recurring income when additional tank terminal facilities start operations.

On the upstream sector, the group said production enhancement activities continue to be carried out in the Bayan field, and D35, J4 and D21 clusters, while it seeks viable production assets which may become available.

It is cautiously optimistic that it will continue to deliver a healthy performance in FY16.