Oil and gas contractor Dialog sees quarterly net profit up 27%

The second-quarter net profit of Dialog Group Bhd, ended Dec 31, 2017, came in at RM115.76mil – up 26.71% from the same period a year ago.

Revenue, however, remained almost unchanged at RM857mil.

The higher profit achieved in the quarter was mainly attributable to its Malaysian operations and the increased contributions from joint ventures (JVs) and associates.

For the first half of the current financial year, net profit stood at RM276.69mil versus the RM172.6mil in the previous year.

“In November 2017, the group’s associate company, Pengerang LNG (Two) Sdn Bhd, achieved its commercial operation and received the first commercial liquefied natural gas cargo at its newly commissioned regasification terminal at the Pengerang Deepwater Terminal. This contributed to a higher share of JV and associate results for the current quarter,” the company said in its notes accompanying its financial results filed with the stock exchange.

It said revenue was contributed by midstream and downstream activities, in particular engineering, construction and plant maintenance services for various projects. In addition, it also included the consolidation of Langsat Terminals, which became subsidiaries in September last year.

“In line with the higher revenue, the net profit contribution from Malaysian operations for the current reporting quarter grew by 24.9%.”

Its international operations remained challenging and recorded a lower revenue of 22.7% against the same quarter last year.

This was contributed by lower sales of specialist products and services in India, Russia and Australia, reduced engineering and construction activities in Singapore and fabrication activities in Australia and New Zealand, it added.

As for prospects, it said the company would continue to grow its core businesses with recurring income, especially in expanding its terminal business.

(EOG)

Subscribe to Get the Latest Updates from EOG  Please click here