KUALA LUMPUR: Dialog Group Bhd’s net profit for the third quarter ended March 31, 2022, slipped to RM133.07 million from RM136.17 million a year ago mainly due to higher project cost.
Revenue was up 46.5 per cent to RM593.43 million from RM405.18mil a year ago, contributed by both Malaysian and International operations which saw increased business activities.
The oil and gas integrated service provider declared an interim dividend of 1.30 sen versus previous corresponding period of 1.20 sen per ordinary share for financial year ending June 30, 2022 to be paid on June 28, 2022.
“The higher revenue reported by the Malaysian operations in the current quarter and financial year to date was attributable to increased activities in the upstream, midstream and downstream oil and gas sector,” it said in a stock exchange filing.
“The upstream activities benefited from the higher oil price and Dialog Terminals Pengerang (5) Sdn Bhd (DTP5) storage tanks which were commissioned in February 2021 contributed to higher revenue for the midstream business.”
On the International front, the group reported higher revenue for the current quarter and financial period to date with increased engineering, construction and plant service activities in Singapore and higher sales of specialist products and services in various countries.
The group registered lower earnings per share of 2.36 sen for the third quarter versus 2.41 sen previously.
As for prospects, the ongoing COVID-19 pandemic and the Ukraine conflict have clouded global economic outlook with signs of (further) deterioration, the company said.
It will maintain a very prudent approach to manage risk and take proactive steps to manage 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,” the filing said.
“In the upstream business, the general outlook for the oil market is improving after the demand disruption caused by the COVID-19 pandemic and the war in Ukraine.
“We will continue to build our knowledge and experience in the upstream business and actively look for opportunities for our development and production services and assets, while incorporating new technologies along the way to help to manage greenhouse gas emissions,” it said.
As for the midstream business, the ongoing development of Pengerang Deepwater Terminals into the largest petroleum and petrochemical hub for Asia Pacific region will remain its focus.
The group is confident that its performance will remain profitable for the financial year ending June 30, 2022. – BK