Dialog’s Q3 net profit jumps 5%, thanks to Malaysian operations

PETALING JAYA: Dialog Group Bhd’s net profit for the third quarter ended March 31, jumped 5.1% to RM151.04 million from RM143.71 million a year ago mainly attributable to the Malaysian operations which saw higher contributions from the group’s terminal business, in particular, Dialog Terminals Langsat 1, 2 and 3, and Pengerang Independent Terminal (PITSB).

During the quarter, Dialog Terminals Langsat 3 had commenced operations for its 120,000 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 total to 770,000 cbm and 1,780,000 cbm respectively, and are currently fully leased out.

Its revenue, however, fell 20.6% to RM505.43 million versus RM636.61 million last year.

For the nine-month period, Dialog’s net profit increased 19.9% to RM473.69 million from RM395.13 million while its revenue decreased 9% to RM1.76 billion from RM1.94 billion in the previous year’s corresponding period.

Looking ahead, Dialog said it 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.

With Phase 1 and Phase 2 of PDT already in operation, the entry into the Long Term Storage Agreement with BP Singapore Pte Limited for Phase 3 of Pengerang Deepwater Terminals is expected to catalyse the further development of PDT in the coming years.

The Phase 3-land reclamation has been completed and the construction of a storage terminal, common tankage facilities and deepwater marine facilities are currently ongoing and expected to commence commercial operations in mid-2021.

The group is also planning to expand Dialog Terminals Langsat 3 into a 300,000 m3 storage facility, in line with its strategy to grow sustainable and recurring income.

“In the downstream sector, we will continue to leverage on our strengths and established track record in integrated technical services comprising engineering, procurement, construction & commissioning, 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 also now actively involved in the plant maintenance services for these projects, in addition to other existing projects,” it said.

In the upstream sector, following the drop in the oil price and production cut by oil producers, the group is taking proactive steps in its cash flow management of its upstream assets together with respective partners accordingly.

source https://www.thesundaily.my/business/dialog-s-q3-net-profit-jumps-5-thanks-to-malaysian-operations-IK2408785