Dialog’s Q3 earnings 26% up despite lower revenue

PETALING JAYA: Dialog Group Bhd’s third-quarter net profit rose by 25.89% to RM118.84mil from RM94.4mil in the same quarter a year ago despite revenue dropping.

Revenue for the quarter ended March 31 fell 5.1% to RM867.37mil from RM913.61mil a year ago, it said in an announcement to Bursa Malaysia.

Basic earnings per share rose to 2.11 sen from 1.74 sen a year ago, while the company declared dividends of 1.4 sen against 1.2 sen previously.

The quarter saw Dialog’s Malaysian and international operations reporting higher profits against the corresponding quarter last year.

“The better performance in Malaysia was contributed by the midstream and downstream activities, in particular, its engineering, construction and plant maintenance services for various projects.

“In addition, the group’s financial performance for the current quarter included the consolidation of the Tanjung Langsat Terminals since they became subsidiaries in September 2017,” the company said in the notes to its financial statements.

The company said that upstream activities had also contributed to the better financial results after the recent increase in the oil price.

“On the international front, the higher profits in the current reporting quarter against the same period last year was mainly contributed by the increased activities at Jubail Supply Base, Saudi Arabia, and higher sales of specialist products and services in the Middle East, Thailand and India,” it said.

Its results were also buoyed by higher contributions from its associate company Pengerang LNG (Two) Sdn Bhd, which achieved its commercial operation and received the first commercial liquefied natural gas cargo.

On its prospects, Dialog said it remained confident that its business model was well structured and can withstand the current oil price volatility and currency movements.

“The group’s financial track record has proven that Dialog’s business is well risk-managed and sustainable,” it said.