Dialog to continue its focus on midstream business
PETALING JAYA: Dialog Group Bhd will continue to focus on its longer term strategy of growing its sustainable and recurring income.
Dialog Group has the second largest independent terminal owner-cum-operator in South-East Asia with a current operating capacity of 5.1 million metres cube.
Dialog's midstream business will continue to be its core focus and it will continue to invest in phased capacity expansions for dedicated long-term customers across its mid-stream terminals business portfolio.
The group will also focus on the development of Pengerang Deepwater Terminals to transform it into one of the largest petroleum and petrochemical hubs for the wider Asia Pacific region.
For new projects in the downstream segment, the group said it will conduct thorough risk assessments for new projects and strategically pursue opportunities that align with its risk management framework and strategic goals.
This is due to the current geopolitical and market uncertainties.
'We will take a cautious and selective approach to bidding for engineering, procurement, construction and commissioning contracts to prioritise in-house projects,' it said.
In its upstream business, Dialog said it will continue to grow its presence through the development and rejuvenation of oil and gas fields. Ongoing projects here in the upstream segment will count towards its diversification strategy, it said.
In its third quarter ended Mar 31, Dialog saw a decline in both its revenue and net profits.
Net profits for the third quarter declined year-on-year (y-o-y) by 13.6% to RM134.97mil while revenues dropped 17.6% y-o-y to RM578.81mil.
'The current net profit position is a recovery from the net loss of RM125.6mil in the preceding quarter.
'The performance in the current quarter was driven by contributions from both the company's Malaysia and international operations, as well as share of profits from the group's joint ventures and associates,' it said.
Within Malaysia, the group said its performance was driven primarily by midstream and upstream operations.
'The midstream operation reported better performance with increased earnings from higher tank storage occupancy and increased tariff rates at our independent terminals. The upstream operation continued to deliver strong production volume from its assets,' it said.
'The revenue and profits contribution for the current financial quarter was, however, reduced slightly when compared to the same period last year due to lower realised oil prices,' it added.
On the international front, Dialog said revenue and profits achieved in the current financial quarter was lower y-o-y due to reduced business activities.
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