KUALA LUMPUR (Aug 20): Dialog Group Bhd (KL:DIALOG) reported a 6.5% year-on-year (y-o-y) increase in its net profit for the fourth quarter despite a decrease in revenue, driven by improved contributions from its joint ventures (JVs) and associates, along with better performance in its midstream and downstream operations.

The integrated oil and gas services provider's net profit came in at RM147.38 million for the fourth quarter ended June 30, 2025 (4QFY2025), up from RM138.42 million in the same period last year, its bourse filing showed.

Revenue fell 24.9% to RM608.34 million from RM810.07 million, as it recorded lower contribution from its upstream operations due to reduced production and decreased business activities in its international operations. The topline decline was buffered by an increase in its share of profits from joint ventures and associates, which reached RM93.1 million in 4QFY2025 versus RM84 million in 4QFY2024.

Earnings were also supported by improved midstream operations, which saw higher income from healthy tank storage occupancy. The company’s downstream operations also performed better due to "cost optimisation initiatives and completion of some projects", according to Dialog.

The group proposed a final dividend of 1.8 sen per share, as opposed to the 2.8 sen it declared a year ago. This raised its FY2025 payout to 3.10 sen, compared with 4.30 sen for FY2024.

For the full FY2025, Dialog's net profit dropped 47.2% to RM303.83 million from RM575.03 million in FY2024, dragged primarily by a net loss of RM125.9 million it recorded in 2QFY2025, its first-ever quarterly loss in 25 years.

That second-quarter loss was mainly caused by a one-off impairment of investments totalling RM134.72 million, and project cost overruns in its engineering, procurement, construction and commissioning (EPCC) segment.

Full-year revenue for FY2025 was RM2.5 billion, down 20.6% from RM3.15 billion in FY2024.

Looking ahead, Dialog anticipates a challenging economic environment in the short to medium term. It plans to "continue to build on its competencies by investing in and upskilling its workforce, as well as digital transformation to ensure it remains efficient and competitive".

"Barring any unforeseen circumstances, the group is optimistic of its positive performance in FY2026,” it added.

Shares in Dialog closed four sen or 2.19% higher at RM1.87 on Wednesday, bringing the group's market valuation to RM10.56 billion.