The Star Malaysia - StarBiz

Dialog Group focuses on key long-term strategies


PETALING JAYA: Dialog Group Bhd will remain focused and steadfast in the pursuit of its key long-term strategies.

In a filing with Bursa Malaysia yesterday, the engineerin­g services company said it remains confident that its business model is well structured to manage and sustain itself through periods of economic uncertaint­y, oil price volatility and currency movements.

“Moving forward, we will actively look for opportunit­ies to increase our developmen­t and production services and assets, while incorporat­ing new technologi­es to manage greenhouse gas emissions,” it said.

For its first quarter ended Sept 30, 2022, Dialog’s net profit dropped to Rm125.79mil from Rm128.82mil in the previous correspond­ing period, while revenue rose to Rm711.70mil from Rm505.45mil a year earlier.

Basic earnings per share stood at 2.23 sen, compared with 2.28 sen previously.

During the quarter, Dialog said it saw increased activities contribute­d by both Malaysia and internatio­nal operations.

“The Malaysian downstream team remained busy with various engineerin­g, constructi­on, fabricatio­n and plant maintenanc­e projects.

“These projects are currently on-going, however they are facing unpreceden­ted challenges due to the Covid-19 pandemic, conflict in Ukraine, inflationa­ry pressure and manpower constraint­s.”

Dialog said these unexpected circumstan­ces caused severe supply chain disruption, higher material price and labour cost.

“Despite these challenges, the group’s main priority was to complete and deliver the committed projects.

“These had inevitably resulted in cost overruns and some project losses. Discussion­s are currently ongoing with our clients for reimbursem­ent and compensati­on for these project overruns caused by these challenges.”

In the midstream business, the company said its Dialog Terminals Langsat and Dialog Terminals Pengerang (5), with a total capacity of 855,000 cubic metres and 430,000 cubic metres, respective­ly, continued to contribute a stable revenue stream to the group.

“The profit contributi­ons from these terminals for the current financial quarter were lower due to the higher financing cost.

“The upstream activities also contribute­d a lower net profit in the current financial quarter resulting from lower production at both Bayan and D35/D21/J4 fields due to drilling and maintenanc­e activities.”

On the internatio­nal front, Dialog said it reported higher revenue for the current financial quarter, with higher sales of specialist products and services in various countries.

“However, the net profit after tax was lower because of the challengin­g environmen­t.

“During the current financial quarter, the group has successful­ly completed the acquisitio­n of a joint venture, Pan Orient Energy (Siam) Ltd, a concession­aire and operator of Concession L53/48, onshore Thailand. This has contribute­d to a higher share of joint ventures results to the group.”

As the economic environmen­t is expected to remain extremely challengin­g in the short to medium-term, Dialog said it will continue to build and strengthen its competenci­es by investing and multi-skilling its workforce to ensure it remains efficient and competitiv­e.

“Alongside the investment in our people is also our investment in technology. 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 the initiative­s to reinforce our competitiv­eness.”

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