KUALA LUMPUR (Nov 18): Dialog Group Bhd (KL:DIALOG) has reported a 7.3% decline in net profit to RM140.02 million for its first quarter ended Sept 30, 2025 (1QFY2026), from RM150.97 million a year earlier. The weaker earnings were mainly due to lower contributions from joint ventures (JVs) and associates, which were affected by unrealised foreign exchange movements.
The share of profit from JV and associates fell sharply to RM61.21 million from RM117.74 million. Nevertheless, operating profit surged to RM85 million from RM30.9 million, supported by stronger performances across both Malaysian and international operations, the group said in a bourse filing.
Quarterly revenue rose 3.6% year-on-year to RM657 million from RM634.45 million.
No dividend was declared for the quarter.
Within Malaysia, Dialog said midstream operations drove earnings growth, underpinned by healthy tank storage occupancy. Downstream operations also contributed more, aided by cost optimisation initiatives and the completion of several projects. Upstream operations, however, delivered lower profits compared with last year, reflecting reduced crude oil allocation and weaker realised oil prices.
Internationally, performance improved on the back of increased fabrication activities in New Zealand and higher engineering and maintenance contributions in Singapore following project completions.
Looking ahead, Dialog reaffirmed its commitment to long-term strategies as a diversified technical service provider across the energy sector’s upstream, midstream, and downstream segments.
In upstream, the group is expanding through field development and rejuvenation projects, including the Baram Junior Cluster and pre-development studies for the RAJA and Mutiara clusters. These initiatives are expected to strengthen engineering and specialist services while advancing emissions management through new technologies.
Midstream remains a core focus, with phased capacity expansions at Pengerang Deepwater Terminals (PDT) aimed at transforming the facility into a regional petroleum and petrochemical hub. Key developments include liquefied natural gas-driven infrastructure with Petronas Gas Bhd (KL:PETGAS), a US$330 million (RM1.37 billion) biorefinery-linked expansion with Pengerang Biorefinery, and a new long-term storage agreement with BP Singapore covering 614,000 m³ of refined product and biofuel storage. Dialog also launched renewable fuel storage in Tanjung Langsat with additional capacity dedicated to EcoCeres.
In downstream, the group will continue leveraging its engineering, procurement, construction and commissioning, and maintenance expertise to support PDT’s growth, adopting a selective bidding strategy while investing in workforce development and digital transformation.
Barring unforeseen circumstances, Dialog remains optimistic about its performance for FY2026.
Dialog shares closed up one sen or 0.5% at RM1.90 on Tuesday, valuing the group at RM10.73 billion. Year to date, the stock has gained 2.7%.