15/11/2023 (Malaysia) - Dialog Group Bhd has reported a notable increase in its net profit for the first quarter ending 30 September 2023, reaching RM132.17 million, up from RM125.79 million in the same period last year. The company's revenue also saw a 9.7% increase to RM780.45 million, compared to RM711.69 million in the previous year.
The oil and gas conglomerate attributed this improved performance to its international operations and higher earnings from joint ventures (JVs) and associated companies. The Group noted that its international operations reported increased revenue and net profit after tax, driven by higher sales of products and specialist services across various countries and increased activities at the Jubail Supply Base in Saudi Arabia.
In Singapore and New Zealand, the Group's engineering, construction, fabrication, and plant maintenance activities contributed positively to the overall performance, benefiting from an improved business environment. The Group highlighted that revenue from JVs and associated companies in the current financial quarter was higher due to increased contributions from terminal operations, following higher storage capacity rates.
Domestically, Dialog mentioned that its midstream activities in Malaysia continued to contribute stable revenue streams from the operations of Dialog Langsat Terminal and Dialog Pengerang Terminal. However, the profit contribution from these terminals was lower in the first quarter due to higher financing costs.
Despite lower net profit after tax from downstream and midstream activities in Malaysia, this was offset by better performance from upstream activities, thanks to higher production in both the Bayan and D35/D21/J4 fields.
Looking ahead, Dialog emphasized its continued focus on midstream business and the ongoing development of the Pengerang Deepwater Terminal (PDT) to become the largest petroleum and petrochemical hub in the Asia-Pacific region. The company stated that Phase 3 of PDT is set for the development of more specialized petroleum and petrochemical storage terminals catering to medium to long-term customers, which may include energy traders, multinational energy corporations, and refining and petrochemical plants.