Dialog 2Q net profit up 18% on cost savings, higher JV contributions

This article first appeared in The Edge Financial Daily, on February 15, 2019.
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KUALA LUMPUR: Dialog Group Bhd’s second-quarter (2Q) net profit rose 18.15% to RM136.78 million, from RM115.76 million a year earlier, thanks to cost savings realised on completed projects and increased share of profit in joint ventures (JVs) and associates.

Earnings per share for the quarter ended Dec 31, 2018 rose to 2.43 sen from 2.05 sen previously, the oil and gas industry player said in a filing with Bursa Malaysia.

The higher earnings, it said, were recorded despite revenue falling 28.9% to RM609.61 million, from RM857.43 million previously, mainly dragged by the group’s Malaysian operations due to the near completion of the engineering, procurement, construction and commissioning works in the Pengerang Deepwater Terminals (PDT) Phase 2 projects.

Total net profit for the first two quarters came to RM251.42 million, down 9.13% from RM276.69 million a year earlier. Half-yearly revenue also fell 20.51% to RM1.3 billion from RM1.64 billion.

“We are pleased to report that the group has continued to deliver on its commitment to growing sustainable, recurring income and enhancing shareholders’ value,” Dialog executive chairman, Tan Sri Dr Ngau Boon Keat, said in a separate statement.

“With the completion of the PDT Phase 2A and 2B, and the refinery projects at Rapid, we are now actively involved in the plant maintenance services for these projects.

“The group has continued to make progress for Phase 3 as well — land reclamation activities are in progress and are scheduled for completion at end of 2019, and we are in active discussions with potential customers for Phase 3,” Ngau added.

“Barring any unforeseen circumstances, the group is confident that its performance will remain strong for the financial year ending June 30, 2019,” Ngau further added.