KUALA LUMPUR: Dialog Group Bhd
posted a higher net profit of RM150.97 million for the first quarter ended Sept 30, 2024 (1Q FY2025) compared to a net profit of RM132.17 million in the same quarter last year.
In a filing with Bursa Malaysia today, the oil and gas services company said revenue, however, fell to RM634.45 million in 1Q from RM780.45 million previously.
This was mainly attributed to the divestment of its Saudi Arabian joint venture, Dialog Jubail Supply Base (DJSB), and reduced international business activities.
The group noted that its Malaysian operations remained busy across the upstream, midstream and downstream businesses, and increased its profits contribution to the group in the current financial quarter against the same period last year.
This was mainly attributable to the better performance of its midstream business due to increased revenue from higher tank storage occupancy and tariffs, according to the filing.
On the international front, the revenue and profits achieved for 1Q were lower compared to the same period last year amid reduced business activities, the company said.
In addition, the group has agreed to divest its entire 60 per cent equity interest in DJSB in August 2024.
"Pending completion, the results of DJSB were not consolidated at the group level in the current financial quarter, which contributed to the lower revenue and profits registered by international operations,” the company explained.
Dialog also said that its associate company, Morimatsu Dialog (Malaysia) Sdn Bhd (MDMSB), is expanding its fabrication facilities in Pengerang with an investment value of approximately RM250 million.
This expansion aims to provide one-stop technical and fabrication solutions for specialised process modules and skids for the energy, chemical, pharmaceutical, solar power and data centre industries.
Meanwhile, the group is marking its first venture into storage facilities for renewable fuel products under Dialog Terminals Langsat.
This project will serve potential users such as biofuel production companies, energy trading houses and multinational energy companies.
"The first phase comprising 24,000 cubic meters (m3) of storage facilities connected to truck loading bays and existing marine facilities is expected to be completed by the end of 2024.
"The second phase comprising an additional 150,000 m3 of storage for renewable and petroleum products is expected to be completed by September 2026,” said the group. - Bernama
