KUALA LUMPUR (Nov 11): Dialog Group Bhd reported a 43.6% jump in net profit to RM164.64 million or 2.92 sen per share in its first financial quarter ended Sept 30, 2019 (1QFY20), from RM114.64 million or 2.03 sen per share in the year-ago quarter.
This was despite a 6.5% contraction in quarterly revenue to RM645.76 million from RM690.89 million in 1QFY190, the group’s exchange filing today showed.
In its filing, Dialog explained it achieved better earnings during the quarter, on stronger performance of all activities within its Malaysian operations, besides the higher share of profit from joint ventures and associates.
Its international operations too recorded higher profitability, contributed by higher engineering and construction activities and increased specialist products and services sales.
Additionally, Dialog said it booked an RM28.5 million non-cash fair value gain, rising from a business combination of a jointly-controlled entity to a subsidiary.
Dialog remains confident that its business model is well structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements. The group said its performance should remain on a positive trajectory for its current financial year ending June 30, 2020 (FY20).
For its midstream sector, Dialog said its Phase 3 land reclamation progress at Pengerang Deepwater Terminals (PDT) remains on track and is scheduled for completion in end-2019, while the construction of a storage terminal, common tankage facilities and deepwater marine facilities have also begun and completion is expected in mid-2021.
“In addition to Dialog Terminals Langsat 1 and 2 with a total capacity of 647,000 cubic metre (m3), Dialog Terminals Langsat 3 has commenced partial operations for its 120,000 m3 storage facility in August 2019.
“We are planning to expand Dialog Terminals Langsat 3 into a 300,000 m3 storage facility, in line with our strategy to grow sustainable and recurring income,” it said.
As for its downstream sector, Dialog said it will continue to leverage on its strengths in integrated technical services comprising engineering, procurement, construction & commissioning (epcc), plant maintenance & catalyst handling services, and specialist products and services.
“With the completion of the PDT Phase 2 and the refinery projects at RAPID, we are now actively involved in the plant maintenance services for these projects, in addition to other existing projects.
“In the upstream sector, the group continues to develop new reserves from the existing contracts and at the same time, [is] actively looking for opportunities to increase our development and production services and assets,” it added.
Shares of Dialog settled one sen lower today at RM3.43 apiece, bringing a market capitalisation of RM19.34 billion. The stock has risen 22.5% from its low of RM2.80 in January. It is currently hovering at the record high level.