Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (May 14): Dialog Group Bhd saw its net profit for the third quarter ended March 31, 2019 (3QFY2020) rise 5.1% year-on-year (y-o-y) to RM151.04 million, from RM143.71 million previously, following the better performance from its Langsat Terminals and Pengerang Independent Terminal (PITSB).

In a bourse filing, the group also announced it would be declaring its first interim dividend for FY2020 of 1.20 sen (payable on June 25).

“During the current financial quarter, Dialog Terminals Langsat 3 had commenced operations for its 120,000 cubic metre (cbm) storage facility and PITSB Phase 1E had also commenced its operation for its 430,000 cbm storage facility expansion. With these, the storage capacity at Dialog Terminals Langsat 1, 2 and 3 and PITSB totals to 770,000 cbm and 1,780,000 cbm respectively, and is currently fully leased out,” it said.

However, Dialog's international net profit contribution declined due to reduced supply base activities in Saudi Arabia and lower margins earned on specialist products and services sales, as well as engineering and construction activities performed.

Despite the better net profit, its quarterly revenue declined 20.61% y-o-y to RM505.34 million, from RM636.61 million previously.

Cumulative net profit for nine months ended March 31, 2019 (9MFY2020) stood 19.88% higher y-o-y at RM473.69 million, from RM395.13 million. Revenue for the period was 8.96% lower at RM1.76 billion, from RM1.94 billion previously.

On its prospects, Dialog noted its position as a technical service provider that is diversified across upstream, midstream and downstream in the oil and gas and petrochemical industries, will allow it to sustain itself through periods of economic uncertainty, oil price volatility and currency movements.

“While the world is suffering from the economic downturn due to Covid-19 global pandemic which had caused the oil and gas prices to drop sharply, Dialog has maintained a very prudent approach and taken proactive steps in managing the group’s finances. Capital expenditure and operating expenses have been reviewed and cost reduction measures are ongoing without jeopardising our operations and service delivery to customers,” it said.

Dialog shares closed 0.6% or two sen lower at RM3.33, giving it a market capitalisation of RM18.79 billion.

      Print
      Text Size
      Share