The integrated technical service provider for the oil and gas sector said its improved performance was mainly contributed by its international operations and higher share of results from joint ventures and associates.
Quarterly revenue was 9.7% higher at RM780.4 million from RM711.7 million, according to its bourse filing today.
Its international operations reported higher revenue and higher net profit after tax from increased sales of specialist products and services in various countries, and increased activities at Jubail Supply Base, Saudi Arabia.
“The engineering, construction, fabrication and plant maintenance activities in Singapore and New Zealand also contributed positively to the group’s performance due to the improved business environment.
“The share of results from joint ventures and associates for the current quarter was also higher compared to last year, attributable to increased contributions from terminals operations due to higher tank storage occupancy rate,” it added.
As for its Malaysia business, it said earnings for the quarter was lower, mainly due to downstream project cost overruns and losses caused by challenges arising from the Covid-19 pandemic, conflict in Ukraine, inflationary pressures, and manpower constraints.
“These unexpected circumstances have caused severe supply chain disruption, higher material prices and labour costs,” it added.
Dialog said the group, which is diversified across the upstream, midstream, and downstream businesses of the energy sector will remain focused and steadfast in the pursuit of its key long-term strategies.
“We remain confident our business model is well structured to manage and sustain the group through periods of economic uncertainty, oil price volatility and currency movements.
“In the upstream business, the general outlook of the oil market continues to see an improvement, following the disruption to demand caused by global events.
“The group will continue to grow its existing upstream business through the rejuvenation, redevelopment, and operatorship of producing and mature oilfields,” it said.
Looking ahead, its focus will continue to be on the midstream business, the ongoing development of Pengerang Deepwater Terminals (PDT) into the largest petroleum and petrochemical hub for the Asia-Pacific region.
Spanning 1,200 acres with three terminal facilities and 19 berths, PDT is unique for its deepwater feature with the capability to operate very large crude carriers and Q-Max for liquified natural gas.
Dialog’s share price closed 1 sen or 0.5% higher today at RM2.11, giving it a market capitalisation of RM11.9 billion.