The company's revenue decreased to RM634.45mil from the RM780.45mil reported in 1Q24.
PETALING JAYA: Oil-and-gas services provider Dialog Group Bhd
posted a 14.2% increase in net profit for its first quarter ended Sept 30, 2024 of financial year 2025 (1Q25) to RM150.97mil from RM132.17mil in the same period last year.
The increase was achieved despite an 18.7% decrease in its revenue to RM634.45mil from the RM780.45mil reported in 1Q24.
In a filing with Bursa Malaysia, Dialog attributed the bottom-line improvement to a higher share of profits from its joint ventures and associates, which increased to RM117.74mil during the quarter under review, up 25.34% from RM93.94mil in 1Q24.
Earnings per share in 1Q25 was 2.68 sen. No dividend was declared for the quarter.
Locally, operations for Dialog remained busy across all the business streams, leading to an increase in pre-tax profit contribution to RM147.08mil in 1Q25, up 41.23% from RM104.14mil in the previous corresponding quarter.
Dialog said this was mainly due to the better performance by its midstream business, thanks to increased revenue from higher tank storage occupancy and tariffs.
As for its downstream business, Dialog said it has progressed to complete various engineering, procurement, construction and commissioning (EPCC) and plant maintenance projects.
“As reported in the previous quarters, these projects experienced losses due to various challenges brought on by geopolitical tensions, inflationary pressures and supply chain disruption which drove up material prices and labour costs.
“As some of these projects are in the pre-commissioning and commissioning stages, the losses reported by the downstream activities for the current financial quarter were reduced,” it said.
On its upstream business, Dialog said it continued to deliver a robust production volume from its assets.
“The revenue and profit contribution (from the upstream business) was, however, lower when compared to the same period last year due to lower realised oil prices,” it noted.
On the international front, however, Dialog saw its pre-tax profit contribution down 80.82% to RM8.91mil from RM49.01mil in 1Q24 due to “reduced business activities”.
In addition, Dialog group said it has entered into an agreement to divest its entire 60% equity interest in Saudi Arabia-based Dialog Jubail Supply Base Co Ltd (DJSB) in August for RM55mil.
“Pending completion, the results of DJSB were not consolidated at the group level in the current financial quarter, hence contributing to the lower revenue and profits registered by the international operations,” it said.
Dialog’s shares closed higher by four sen or 2.05% yesterday to RM1.99 a share.
Year-to-date, however, the stock is down by 3.4% from RM2.06 a share at the start of the year.
Dialog had a capital expenditure commitment of RM468.54mil as at Sept 30 compared to RM297.9mil a year ago.
Commitments in respect to its upstream business, however, was about RM20mil only against RM130mil a year ago.
