Dialog makes RM510mil profit in FY18

The research firm believes that Dialog is likely to proceed with a further expansion of its tank terminal capacity of 1.2m cu m gradually (expected to start in 2022) as demand for petroleum products and crude oil storage space would be strong upon completion of the many petrochemical facilities in the area.

KUALA LUMPUR: Dialog Group Bhd is adding new storage tank terminals, boosting its lucrative core logistics business, as full year earnings tops the half-a-billion ringgit mark for the first time.

The group said it is building new storage facilities at the Pengerang Deepwater Terminals and Langsat Terminal, both in Johor.

The expansion, Dialog told Bursa Malaysia in a filing on Thursday, is in line with the group’s strategy to grow sustainable and recurring income.

Net profit grew 11% to RM114.8mil in the last quarter ended June 30, despite a 37% drop in revenue to RM607mil. The growth in quarterly profit lifted its full year earnings to RM510mil, or 9.06 sen a share.

Dialog said it will pay a final dividend of 1.8 sen a share, boosting its full year payout to 3.2 sen a share.

Barring any unforeseen circumstances, the group is optimistic that its performance will remain strong for the financial year ending June 30, 2019,” it said.

Apart from the logistics business, Dialog is also active in the upstream sector of the oil and gas industry. The Group said it is on the lookout for viable production assets, which may become available for possible acquisition.