MALAYSIA, 20/11/2024 (Asia News Channels) - Dialog Group Bhd reported a net profit of RM150.97 million for the first quarter ended September 30, 2024 (1Q FY2025), up from RM132.17 million in the same period last year. Despite this increase, revenue declined to RM634.45 million from RM780.45 million, primarily due to the divestment of its Saudi Arabian joint venture, Dialog Jubail Supply Base (DJSB), and a reduction in international business activities.
The company stated that Malaysian operations were strong across upstream, midstream, and downstream segments, with midstream performance driving increased profit contributions. The higher tank storage occupancy and tariffs contributed significantly to the segment's results.
On the international front, Dialog experienced lower revenue and profit compared to the same period last year, reflecting reduced activity levels. The group finalized the divestment of its 60% equity in DJSB in August 2024, with the financial results from the joint venture excluded from the consolidated accounts for the quarter.
Dialog also announced the expansion of its associate company, Morimatsu Dialog (Malaysia) Sdn Bhd (MDMSB), which is investing approximately RM250 million to upgrade its fabrication facilities in Pengerang. These facilities will support technical and fabrication solutions for industries such as energy, chemicals, pharmaceuticals, solar power, and data centers.
Additionally, Dialog is making its first foray into renewable fuel storage through its Dialog Terminals Langsat facility. The first phase, comprising 24,000 cubic meters of storage connected to truck loading and marine facilities, is expected to complete by the end of 2024. A second phase, which will add 150,000 cubic meters of capacity for renewable and petroleum products, is projected for completion by September 2026.
The company emphasized that these initiatives align with its growth strategy across traditional and renewable energy sectors.
-- ASIA NEWS CHANNELS