KUALA LUMPUR (May 19): Dialog Group Bhd saw its net profit for the third quarter ended March 31, 2021 (3QFY21) fall 9.85% to RM 136.17 million from RM151.04 million a year ago due to lower revenue generated by downstream activities.
Subsequently, its earnings per share declined slightly to 2.41 sen from 2.68 sen.
In a filing exchange today, the group highlighted its quarterly revenue dropping by 19.84% to RM405.18 million from RM505.43 million as the focus on the development of the group’s own internal midstream terminal assets resulted in lower revenue for Malaysian operations.
Despite lower earnings, Dialog declared an interim dividend of 1.2 sen per share to its shareholders, to be paid on June 29.
For the full nine-month period, the group’s net profit declined by 14.6% to RM404.6 million from RM473.69 million while revenue was down by 38.3% to RM1.09 billion from RM1.76 billion.
Moving forward, the group remains upbeat that its business model is well structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements.
“Whilst the world is experiencing a prolonged economic downturn due to the Covid-19 global pandemic which had caused demand disruptions of petroleum products, Dialog has maintained a very prudent approach and taken proactive steps in managing the group’s finances.
“Capital expenditure and operating expenses have been reviewed and cost reduction measures are ongoing without jeopardizing our operations and service delivery to customers,” it said.
In the midstream sector, the group said it will continue to develop Pengerang Deepwater Terminals (PDT) for oil, gas and petrochemical players that are looking to capture Asia Pacific demand growth over the next 30 years.
“PDT continues to offer a compelling value proposition for the establishment of strategic hub operations given its ideal location and one-stop integrated hub offering.
“In the downstream sector, we will continue to leverage on our strengths and establish a track record in integrated technical services comprising Engineering, Procurement, Construction & Commissioning (EPCC), Plant Maintenance & Catalyst Handling Services, and Specialist Products and Services,” it said.
As for the upstream sector, the group is taking proactive steps in the cash flow management of its assets together with its respective partners.
Dialog’s share price fell two sen to RM2.88 today, giving it a market capitalisation of RM16.26 billion.
