KUALA LUMPUR (May 15): Integrated oil and gas services provider Dialog Group Bhd’s (KL:DIALOG) net profit for the January-March quarter dropped 13.57% year-on-year, as revenue fell on lower performances from both its Malaysian and international operations.
Net profit for the third quarter ended March 31, 2024 (3QFY2025) fell to RM134.97 million from RM156.16 million in 3QFY2024, its bourse filing on Thursday showed. Earnings per share dropped to 2.39 sen from 2.77 sen.
Lower oil prices dragged down its Malaysian operations’ revenue and profit contribution for 3QFY2025, while its international operations saw a reduction in business activities, particularly after the group divested its entire 60% stake in the Dialog Jubail Supply Base in Saudi Arabia.
Quarterly revenue fell 17.57% to RM578.81 million — its weakest since 2QFY2022, when the topline was RM544.49 million — from RM702.2 million.
It declared an interim cash dividend of 1.3 sen per share, payable on June 26, bringing FY2025's year-to-date payout to 1.3 sen per share, down 13.33% from 1.5 sen in the same period in FY2023.
Despite the weaker year-on-year showing, Dialog's 3QFY2025 was a turnaround for the group compared to the previous quarter of 2QFY2025 when it incurred a net loss of RM129.49 million, even as revenue dropped 14.9% from RM680 million.
Dialog had incurred a net loss of RM129.49 million in 2QFY2025 — its first quarterly loss in 25 years — mainly due to one-off impairment of investments amounting to RM134.72 million and project cost overruns.
For the first nine months of FY2025, Dialog made a net profit of RM156.44 million, down 64.17% from RM436.62 million in the same period of FY2024, as revenue fell 19.16% to RM1.89 billion from RM2.34 billion.
On prospects, Dialog said increased upstream activities are providing it the opportunity to participate in the field development cycle value chain, particularly in the provision of engineering and specialist technical services.
For its midstream business, Dialog said the segment remains a core focus, where it will undertake phased capacity expansions in Pengerang Deepwater Terminals (PDT). Within PDT, a Dialog and Petronas Gas Bhd (KL:PETGAS) joint venture has commenced work on the liquefied natural gas-driven air separation unit facility.
In the downstream business, the group said it will be cautious and take a selective approach to bidding for engineering, procurement, commissioning and construction contracts, and will prioritise in-house projects.
It also noted that its associate Morimatsu Dialog (Malaysia) Sdn Bhd has completed its RM250 million fabrication facilities in Pengerang, Johor, that provide one-stop technical and fabrication solutions for specialised process modules and skids for the energy, chemical, pharmaceutical, solar power and data centre industries.
“As the economic environment is expected to remain challenging in the short to medium term, we will continue to build and strengthen our competencies by investing in and upskilling our workforce, and digital transformation to ensure we remain efficient and competitive,” it added.
Dialog’s share price closed up five sen or 2.91% to RM1.77, bringing the stock a market capitalisation of RM9.99 billion. Over the past one-year, the stock has declined 28%.