KUALA LUMPUR: Tank farm operator Dialog Group Bhd delivered its best-ever quarterly net profit on higher contributions from joint ventures and associates, terminal business, as well as increased plant services activities.
For the second quarter ended Dec 31, the group achieved a 15.5% increase in net profit to RM158mil from RM136.8mil a year ago.
Revenue improved 0.4% to RM612.3mil, the company said in a filing with Bursa Malaysia.
“As a leading integrated technical service provider that is diversified across the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry, Dialog 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, ” it said.
“Barring any unforeseen circumstances, the group is confident that its performance will remain on a positive trajectory for the financial year ending June 30,2020 (FY20).”
Dialog is the developer of the Pengerang Deepwater Terminals (PDT) in Johor.
“With Phase 1 and 2 of PDT already in operations, the entry into the long-term storage agreement with BP Singapore Pte Ltd for Phase 3 is another significant milestone, ” it said.
The company said it has completed land reclamation at Phase 3 and the construction of a storage terminal, common tankage facilities and deepwater marine facilities are targeted for completion by the middle of 2021.
Meanwhile, the nearby Dialog Terminals Langsat 3 has commenced full operations for its 120,000-cubic-metre storage facility in January 2020.
“We are planning to expand Dialog Terminals Langsat 3 into a 300,000-cubic-metre storage facility, in line with our strategy to grow sustainable and recurring income, ” it said.
Dialog Terminals Langsat 1 and 2 has a total capacity of 647,000 cubic metres.
“In the upstream sector, the group continues to develop new reserves from the existing contracts and at the same time, actively looking for opportunities to increase our development and production services and assets, ” it said.
In the downstream sector, Dialog said it would continue to leverage on its strengths and established track record.
“With the completion of the PDT Phase 2 and the refinery projects at RAPID (Refinery and Petrochemical Integrated Development), we are now actively involved in the plant maintenance services for these projects, in addition to other existing projects, ” it said.
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