KUALA LUMPUR (Oct 17): Dialog Group Bhd executive chairman Tan Sri Dr Ngau Boon Keat said the oil and gas support services provider is optimistic that activities will pick up in current financial year ending June 30, 2022 (FY22) and that the company intends to accelerate its digital transformation to reinforce its competitiveness in anticipation of an "extremely challenging” Covid-19 pandemic-driven economic environment.
In Dialog’s latest annual report, which was filed with Bursa Malaysia on Friday (Oct 15), Ngau said although the global economic outlook is showing signs of improvement, the impact of the prolonged Covid-19 outbreak and spread of new variants of the pandemic are dampening the overall outlook and it is uncertain how long this will last.
"Overall, the economic environment is expected to remain extremely challenging in the short- to medium term.
"The outlook for oil demand has also shifted due to rapid changes in behaviour caused by the pandemic and the global focus towards a more sustainable low-carbon future.
"We are optimistic that activities will pick up in FY22, and will continue to build and strengthen our competencies by investing and multi-skilling our workforce to ensure we remain efficient and competitive. Alongside the investment in our people is also our investment in technology. Dialog has long leveraged on technology to differentiate ourselves from our competitors,” he said.
Barring any unforeseen circumstances, the group is optimistic of positive performance in FY22, according to him.
In view of the extremely challenging economic environment in the short- to medium term, Ngau said Dialog will remain focused and steadfast in the pursuit of key long-term strategies, which had helped the group weather different economic cycles in the past.
The strategies include Dialog's diversification across the upstream, midstream and downstream businesses of the energy sector, expansion into renewables, including clean and green energy, besides long-term recurring income growth across all businesses, he said.
Dialog’s strategies include “active recruitment, development and retention of talent, cultivating strong relationships with stakeholders including customers, suppliers, partners, bankers, regulators and government authorities and development of proprietary technology for use in our businesses,” he said.
At Bursa on Friday, Dialog’s share price closed unchanged at RM3 for a market value of about RM16.95 billion, based on the company’s 5.65 billion issued shares.
Dialog saw 10.62 million shares traded at between RM2.92 and RM3.06.