Dialog Q1 earnings up 20%

PETALING JAYA: Dialog Group Bhd's net profit for the first quarter ended Sept 30, 2015 increased 20% to RM60.07 million from RM49.91 million a year ago on higher revenue contribution from its local operations.
Revenue saw a slight 1.0% drop to RM536.37 million compared with RM541.55 million in the previous year.
Dialog said revenue from Malaysia operation was higher mainly contributed by the engineering and construction activities from on-going projects. But this was offset by lower sales in specialist products and services and upstream activities, resulting to a drop in net profit contribution from Malaysia operation for the quarter.
On the international operation, revenue for the current financial quarter was lower against same period last year. Despite the lower revenue, international operation recorded a higher net profit, mainly attributable to higher fabrication activities in New Zealand and better margins on sales of specialist products and services which are mostly denominated in US dollar.
"The drop in oil prices will lower the overall costs of processing, manufacturing and production of a wide range of petroleum and petrochemical products. This would have a positive impact on the midstream and downstream sectors of the oil and gas industry.
"The current oil price development reinforces the group's strategy to develop and invest in the Pengerang Deepwater Terminal for the long term," Dialog said.
It said the demand for storage facilities is strong for crude oil and products.
It said that further development of the Pengerang Deepwater Terminal will provide more opportunities for the group's engineering, procurement, construction, commissioning and fabrication services.
"The group will continue to benefit from long term recurring rental income derived from additional tank terminal facilities when they go in to operations," it said.