Dialog said it remains optimistic of its positive performance in FY24.
PETALING JAYA: Dialog Group Bhd
will remain focused and steadfast in its pursuit of its key long-term strategies.
In a filing with Bursa Malaysia, the integrated technical service provider said it remained confident that its business model was well structured to manage and sustain the group through periods of economic uncertainty, oil price volatility and currency movements.
For its fourth quarter ended June 30, 2023, Dialog’s net profit rose to RM126.78mil from RM118.25mil in the previous corresponding period, while revenue grew to RM690.04mil from RM675.65mil a year earlier.
Basic earnings per share stood at 2.25 sen, versus 2.10 sen previously.
For its financial year ended June 30, 2023 (FY23), Dialog’s net profit rose to RM510.52mil from RM508mil in the previous corresponding period, while revenue grew to RM3bil from RM2.32bil a year earlier.
During the quarter and financial year under review, Dialog said its Malaysian operations recorded increased revenue from its upstream, midstream and downstream activities.
“The higher upstream revenue was mostly due to the offshore project implementation at Bayan field. The net profit from the upstream business was, however, lower due to maintenance activities and higher operating costs.”
Dialog said Malaysian downstream activities remained busy with various engineering, construction, fabrication and plant maintenance projects.
“The unprecedented challenges brought on by the Covid-19 pandemic, conflict in Ukraine, inflationary pressures and manpower constraints continue to impact our ongoing projects.
“These unexpected circumstances have caused severe supply chain disruption, higher material prices and labour costs.”
Despite these challenges, Dialog said its main priority was still to complete and deliver the committed projects, which have inevitably resulted in cost overruns and project losses.
On the International front, Dialog said it reported higher revenue and net profit after tax for the current quarter and financial year, contributed by increased activities and the improved business environment overseas.
“The group has successfully completed the acquisition of a 50.01% equity interest in Pan Orient Energy (Siam) Ltd, a concessionaire and operator of Concession L53/48, onshore Thailand oilfield in August 2022.
“This has contributed to a higher share of joint ventures’ results to the group in the current quarter and financial year.”
Going forward, Dialog noted that the economic environment is expected to remain extremely challenging in the short to medium term.
“We will continue to build and strengthen our competencies by investing and multi-skilling our workforce to ensure we remain efficient and competitive.
“Dialog has long leveraged technology to differentiate ourselves from our competitors. In this regard, our ongoing digital transformation initiatives have been progressing well and we will continue these initiatives to reinforce our competitiveness.”
Barring any unforeseen circumstances, Dialog said it remains optimistic of its positive performance in FY24.
Meanwhile, in a recent report, Kenanga Research said Dialog’s prospects are expected to remain positive, underpinned by its tank farm business, stable downstream margins as well as its on-track major expansion plans.
It said it liked Dialog for its resilient non-cyclical earnings with multi-year growth prospects from future capacity expansion.
