The group said it will continue to invest in phased capacity expansions.
PETALING JAYA: Dialog Group Bhd
, which saw its bottom line growing by about 12.6% for the financial year ended June 30, 2024 (FY24), remains confident in its ability to navigate economic uncertainties, oil price volatility and currency fluctuations.
“As a leading integrated technical service provider diversified across the upstream, midstream and downstream sectors, Dialog will stay focused on our long-term strategies,” the group noted in a filing with Bursa Malaysia.
In the upstream segment, Dialog highlighted an improving oil market outlook, leading to increased activity.
“Against this backdrop, the group will continue to grow its existing upstream business through the rejuvenation, development and operatorship of oil and gas fields,” it added.
Dialog said the increased upstream activity provides the opportunity for the group to participate in other parts of the value chain in the field development cycle, particularly in the provision of engineering and specialist technical services.
As South-East Asia’s second-largest independent terminal owner and operator with a current operating capacity of 5.1 million cubic m, Dialog said midstream business continues to be a core area of emphasis.
The group said it will continue to invest in phased capacity expansions, focusing on developing Pengerang Deepwater Terminals into the largest petroleum and petrochemical hub in the Asia Pacific.
“This is in line with the group’s longer-term strategy to grow its sustainable and recurring income,” it added.
In the downstream business, Dialog said it will continue to leverage its strengths in integrated technical services but remains cautious due to market uncertainties, including geopolitical conflicts and supply chain disruptions.
“The group will exercise caution and selectivity, particularly in the bidding process for lump-sum engineering, procurement, construction and commissioning or EPCC contracts.”
Additionally, Dialog is expanding its fabrication facilities in Pengerang with a RM250mil investment through its associate company, Morimatsu Dialog (M) Sdn Bhd, 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.
In response to growing interest in low-carbon fuel alternatives, Dialog is developing storage facilities for renewable fuel products at Dialog Terminals Langsat (3), with the first phase comprising 24,000 cubic m storage facilities expected to be completed by the end of 2024.
“This venture will serve potential users such as biofuel production companies, energy trading houses and multinational energy companies,” it said.
The second phase comprising an additional 150,000 cubic m storage for renewable and petroleum products is expected to be completed by September 2026.
For the fourth quarter ended June 30, 2024 (4Q24), Dialog saw its revenue rising by 17.4% to RM810.1mil from RM690mil in 4Q23, while net profit grew by about 9% to RM138.4mil from RM126.8mil in the previous corresponding quarter.
For the full financial year, Dialog’s revenue increased by 5% to RM3.15bil from RM3bil in FY23, while net profit surged 12.6% to RM575mil from RM510.5mil in FY23.
The group reported increased revenue and profit after tax from its Malaysia operations, driven mainly by increased production from upstream activities.
Midstream activities continued to provide stable revenue, while the downstream team faced challenges, reporting losses due to project cost overruns.
On the International front, Dialog saw higher revenue and profit, contributed by increased sales of specialist products and services in various countries.
Despite facing numerous challenges, including the aftermath of the Covid-19 pandemic, Dialog remains focused on completing its committed projects, which have inevitably resulted in cost overruns and project losses.
The company declared a final cash dividend of 2.8 sen a share which took its full year dividend to 4.3 sen a share on FY24 earnings per share of 10.19 sen.
