Dialog Group reported its earnings for the first quarter ended September registering a net profit after tax of RM148.6 million, an increase of 4.5% from RM142.2 million reported in the corresponding quarter last year. The group said the better result was achieved despite an 18.7% decrease in the current quarter's revenue to RM634.5 million from RM780.4 million recorded in the corresponding quarter last year. It added that the higher share of profits of joint ventures and associates contributed significantly to the Group's better performance in the current financial quarter.
Based on report, Malaysia operation remained busy across the upstream, midstream and downstream businesses, and increased its profits contribution to the Group in the current financial quarter against the same period last year. This was mainly attributable to the better performance by its midstream business due to increased revenue from higher tank storage occupancy and tariffs.The downstream business progressed to complete various EPCC and plant maintenance projects.
As reported in the previous quarters, Dialog said these projects experienced losses due to various challenges brought
on by geopolitical tensions, inflationary pressures, and supply chain disruption which drove up material prices and labour costs. As some of these projects are in the pre-commissioning and commissioning stages, the losses reported by the downstream activities for the current financial quarter were reduced.
The upstream business continued to deliver a strong production volume from its assets. The revenue and profits contribution for the current financial quarter was, however, lower when compared to the same period last year due to lower realised oil prices.
On the International front, the revenue and profits achieved in the current reporting quarter were lower against same period last year due to reduced business activities. In addition, the Group had also entered into an agreement to divest its entire 60% equity interest in Dialog Jubail Supply Base in August Pending completion, the results of DJSB were not consolidated at the Group level in the current financial quarter hence contributed to the lower revenue and profits registered by international operation.
