KUALA LUMPUR: Dialog Group Bhd
will navigate the challenging economic environment in the short to medium term by investing in and multi-skilling its workforce to build and strengthen its competencies, ensuring continued efficiency and competitiveness.
“In addition to the investment in our people, we are also stepping up our digital transformation initiatives which will reinforce our competitiveness.
“Barring any unforeseen circumstances, the group is optimistic of its positive performance in the financial year ending June 30, 2025,” Dialog said in a filing with Bursa Malaysia.
In the fourth quarter ended June 30, Dialog’s net profit rose 9.2% to RM138.4mil compared with RM126.8mil in the same corresponding quarter last year.
Revenue jumped 17.4% to RM810.1mil against RM690mil achieved a year ago. Its earnings per share climbed to 2.45 sen from 2.25 sen a year prior.
For the full year, Dialog posted a net profit of RM575.03mil, up 12.6% from RM510.5mil while revenue rose 5% to RM3.15bil against RM3bil last year.
Dialog has declared a final cash dividend of 2.80 sen per share, amounting to about RM158mil.
The total dividend for the current financial year is higher than the company's dividend payout policy of at least 40% of profit attributable to shareholders of RM575mil.
The group noted that, in the upstream business, the oil market outlook is improving following disruptions in demand caused by global events.
“Against this backdrop, the group will continue to grow its existing upstream business through the rejuvenation, development, and operatorship of oil and gas fields.
“In line with Dialog’s diversification strategy, the increased upstream activity provides the opportunity to participate in other parts of the value chain in the field development cycle, particularly in the provision of engineering and specialist technical services,” Dialog said.
In the downstream business, Dialog will continue to leverage on its strengths and established track record in integrated technical services comprising engineering, procurement, construction & commissioning (EPCC), plant maintenance & catalyst handling services, and specialist products and services.
“Given the current market uncertainties and challenges, including geopolitical conflicts in Ukraine and Gaza, inflationary pressures, supply chain disruptions, and increasing material and labour costs, the group will conduct thorough risk assessments for new projects and strategically pursue opportunities that align with our risk management framework and strategic goals. The group will exercise caution and selectivity, particularly in the bidding process for lump-sum EPCC contracts,” it said.
Dialog said the group via its associate company, Morimatsu Dialog (Malaysia) Sdn Bhd is expanding its fabrication facilities in Pengerang with an investment value of approximately RM250mil to provide one-stop technical & fabrication solutions for specialised process modules & skids for the energy, chemical, pharmaceutical, solar power and data center industries.
This will support Morimatsu Dialog in meeting the demands and opportunities in the region and beyond.
In response to growing interest in low-carbon fuels, Dialog is entering the renewable fuel storage market with its DIALOG Terminals Langsat (3) project. This facility will cater to biofuel producers, energy traders, and multinational energy companies.
“The first phase comprising of 24,000 m3 storage facilities connected
to truck loading bays and existing marine facilities is expected to be completed by end-2024.
“The second phase comprising an additional 150,000m3 storage for renewable and petroleum products is expected to be completed by September 2026. 100,000 m3 of this capacity is dedicated to EcoCeres Limited, a subsidiary of EcoCeres Inc,” Dialog said.
