Revenue from International operation was higher against same quarter last year mainly attributable to stronger sales of specialist products & services in Middle East, India, Africa and Russia as well as increased fabrication activities in New Zealand. Year-to-date revenue was also higher from engineering & construction and plant maintenance activities in Singapore.

Revenue from Malaysia operation for the current quarter was lower as registered by engineering & construction and plant maintenance activities. However the year-to-date revenue was higher contributed by all main activities.

With higher revenue and improved net profit margin from the International operation, the Group’s net profit for the current financial quarter of RM54.1 million  rose by 27% against same quarter last year. As for the cumulative nine months’ period, the Group’s net profit was up by 30% to RM173.6 million in line with higher revenue and increased contribution from joint ventures.

Prospects

The oil and gas sector in Malaysia is expected to remain a main growth driver for the Malaysian economy contributing some 20% of the nation’s Gross Domestic Product. Out of the total cumulative amount of RM218 billion of announced Economic Transformation Programme projects, approximately RM70 billion (32%) will be invested in Pengerang. All these translate into a robust industry outlook and more upstream and downstream opportunities for oil and gas service providers.

As an integrated technical services provider to the petroleum and petrochemical industry, the Group is poised to benefit from the positive industry outlook as the Group strategically grow the core businesses comprising Upstream Services, Logistics Services – Tank Terminals and Supply Base, Specialist Products and Services, E&C, Fabrication, Plant Services and e-Payment Technology and Solutions.

The demand for tank storage facilities is expected to increase while further development of the Pengerang Deepwater Petroleum Terminal will provide increased opportunities for the Group’s E&C Division. The Group will also benefit from long-term recurring income once the terminal’s tank facilities become operational.

Phase 1A of the first terminal developed by Pengerang Independent Terminals Sdn Bhd (“PITSB”), a joint venture between Dialog, Vopak and the State Secretary, Johor Inc achieved mechanical completion on 31 March 2014 and received the first oil shipment on 12 April 2014. For this phase, there will be 25 storage tanks with a combined capacity of 432,000 cubic metres that is capable of storing Clean Petroleum Products. With the mechanical completion of this phase, we are progressing well with the construction of the 2 other phases – phase 1B ( Clean Petroleum Products ) and Phase 1C ( Crude ), for mechanical completion by end of Q2 2014 and Q4 2014 respectively. The Group is now working towards securing new potential partners for subsequent phases, which include the development of more petroleum and LNG storage terminals.

In the upstream division, BC Petroleum Sdn Bhd (“BCP”), a 32% owned joint venture, has completed the pre-development phase and progressed to the initial phase of the development of Bentara Oil Field within the Balai Cluster. Phase I of the Bentara field development will utilise the existing platform and two wells, producing from both Bentara-2 and Bentara-3 through the EPV Balai Mutiara. Commencement of production is planned for Q2 2014.

The redevelopment of the Bayan Field by Halliburton Bayan Petroleum Sdn Bhd (“HBP”), a 50% owned joint venture, continues progressing with good results, showing great improvements in production through production enhancement activities, while the oil and gas field development as well as near field prospect maturation activities continue to develop. Combined, all these activities are expected to create robust platforms that will generate long-term sustainable income for the Group.

The Group continues to enhance its human capital development to meet the anticipated workload challenges ahead.

Barring unforeseen circumstances, the Group is confident that it will continue to deliver a healthy performance for the financial year ending 30 June 2014.