KUALA LUMPUR (Aug 18): Dialog Group Bhd’s net profit for the fourth quarter ended June 30, 2020 grew 11.3% to RM156.68 million from RM140.71 million a year earlier, mainly due to the strong performance of its Malaysian operations.
Revenue rose 20.2% to RM539.94 million from RM449.34 million. The group recommended a final dividend of 1.9 sen per share for the financial year ended June 30, 2020 (FY20), bringing its total dividend payout for the year to 3.1 sen per share — as opposed to 3.8 sen for FY19.
For the full FY20, its net profit stood at RM630.36 million, up 17.6% from RM535.84 million, though revenue slipped 3.5% to RM2.3 billion from RM2.39 billion.
In a bourse filing, the group said its Malaysian operations recorded higher contributions from the group’s terminal business, especially Dialog Terminals Langsat 1, 2 and 3, and Pengerang Independent Terminals Sdn Bhd (PITSB).
It said Dialog Terminals Langsat 3 had commenced operations for its 120,000m3 storage facility, while PITSB Phase 1E had also commenced operations of its 430,000m3 storage facility expansion.
“With these, the storage capacity at Dialog Terminals Langsat 1, 2 and 3 and PITSB totals to 770,000m3 and 1,780,000m3 respectively and are all fully leased out,” Dialog said.
Meanwhile, its international operations saw revenue growth of 9.6% year-on-year, although net profit for the segment fell 5.7% due to lower margins amid a challenging market and intense competition.
Going forward, the group is confident of weathering through periods of economic uncertainty, oil price volatility and currency movements.
“While the world is suffering from the economic downturn due to Covid-19, which has 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 rose one sen or 0.27% to RM3.66 today, giving it a market capitalisation of RM20.56 billion.