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Dialog Q2 earnings up 15.5% to RM158m

13 Feb 2020 / 21:03 H.

PETALING JAYA: Dialog Group Bhd’s net profit for the second quarter ended Dec 31, 2019 rose 15.5% to RM158.01 million from RM136.78 million a year ago, underpinned by the Malaysia operations which saw higher contributions from the group’s share of profit on joint ventures and associates, terminal business and increased plant services activities.

Its revenue was RM612.31 million, a 0.4% increase from RM609.61 million previously.

For the six-month period, Dialog’s net profit soared 28.3% to RM322.65 million from RM251.42 million, but revenue fell 3.3% to RM1.26 billion from RM1.3 billion in the previous year.

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.

“Looking forward in the midstream sector, the ongoing development of Pengerang Deepwater Terminals (PDT) will continue to take centre stage for oil, gas and petrochemical players who are looking to capture Asia Pacific demand growth over the next 30 years. PDT offers a compelling value proposition for the establishment of strategic hub operations given its ideal location and one-stop integrated hub offering.”

With Phase 1 and Phase 2 of PDT already in operations, the entry into the long term storage agreement with BP Singapore Pte Limited for Phase 3 of PDT is another significant milestone in this direction and is expected to catalyse the further development of PDT in the coming years. The Phase 3 - land reclamation has completed and the construction of a storage terminal, common tankage facilities (including shared infrastructure) and deepwater marine facilities (Jetty 3) have also begun and completion is expected in mid-2021.

“With another 500 acres available for development, we are still in the early stages of developing PDT into the largest petroleum and petrochemical hub for the Asia Pacific that we have envisioned it to be.”

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