Revenue, meanwhile, increased 29.4% to RM3 billion from RM2.32 billion registered a year ago.
In a filing with Bursa Malaysia today, the company said its Malaysian operations had recorded a revenue increase from its upstream, midstream, and downstream activities.
The higher upstream revenue was primarily due to the offshore project implementation at the Bayan field, located offshore Sarawak.
“Net profit from the upstream business was, however, lower due to maintenance activities and higher operating costs,” it said.
Dialog said its Malaysian midstream activities continued to contribute a stable revenue stream to the group through the operations of Terminal Langsat and Terminal Pengerang.
However, the profits generated by these terminals were somewhat reduced due to increased financing expenses.
The Malaysian downstream activities also remained busy with various engineering, construction, fabrication, and plant maintenance projects, it noted.
“However, the unprecedented challenges brought on by the Covid-19 pandemic, conflict in Ukraine, inflationary pressures and manpower constraints continue to impact our ongoing projects.
“These unexpected circumstances have caused severe supply chain disruption, higher material prices and labour costs,” it shared.
Despite these challenges, the group said its main priority is still to complete and deliver its committed projects, which have inevitably resulted in cost overruns and project losses.
Meanwhile, on the international front, the group reported higher revenue and net profit for FY2023, contributed by increased activities and an improved business environment overseas.
On another note, Dialog shared that it completed the acquisition of a 50.01% equity interest in Pan Orient Energy (Siam) Ltd, a concessionaire and operator of Concession L53/48, an oilfield in Thailand, in August 2022.
It said this has contributed to a higher share of earnings to the group in the current quarter and financial year.
Moving forward, the group said it remained optimistic about its performance in FY2024.
Dialog added that the board of directors had recommended a final cash dividend of 2.4 sen per ordinary share in respect of FY2023 for approval at the forthcoming annual general meeting.
This would bring the financial year’s total cash dividend to 3.7 sen per share, amounting to about RM209.35 million.
At market close today, Dialog’s share price was up three sen or 1.35% at RM2.26, giving it a market capitalisation of RM12.76 billion.