Revenue for Malaysia operation for the current quarter and financial year under review was higher mainly contributed by the engineering and construction ( E & C ) activities, i.e. the Independent Deepwater Terminal project in Pengerang and Bitumen Terminal project in Tanjung Langsat. In addition, higher sales of specialist products & services and increased fabrication and plant maintenance activities had also contributed to the better performance by Malaysia operation in the current quarter and financial year under review. 

Revenue from International operation for the current financial year increased mainly contributed by stronger sales of specialist products and services in Middle East, India, Africa and Thailand. Higher fabrication activities in New Zealand and E & C activities in Singapore also contributed to the better results for International operation in the current financial year. However, for current quarter, revenue decreased against corresponding quarter last financial year as a result of lower plant maintenance and E & C activities in Singapore. 

The Group’s profit attributable to owners of the Company for the current financial year was RM215.9 million, increased by 11.7% when compared to last financial year. This was achieved following the better performance from both Malaysia and International operation and overall increase in contribution from joint venture companies.

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, more than RM80 billion (RAPID Project) 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 business 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 Terminal will provide increased opportunities for the Group’s E&C services. 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. The construction work for phase 1B ( Clean Petroleum Products ) has been completed  and is now being commissioned for start-up. Phase 1C ( Crude oils ) construction is on schedule and due for mechanical completion by Q4 2014. The Group is now working towards securing new potential partners for subsequent phases, which include the development of more petroleum, petrochemical and LNG storage terminals. 

In the upstream services, BC Petroleum Sdn Bhd (“BCP”), a 32% owned joint venture, commenced oil production from the Phase 1 of Bentara field development in May 2014, while production enhancement and re-development activities continue in Bayan by Halliburton Bayan Petroleum Sdn Bhd (“HBP”), a 50% owned joint venture.  In May 2014, the Group accepted a letter of Intent from ROC Oil (Sarawak) Sdn Bhd (“ROC”) for a farm out of 20% of ROC’s participating interest in the Production Sharing Contract (“PSC”) for the three fields D35, D21 and J4, located offshore Sarawak, which will reduce ROC’s participating interest in the PSC to 30%. These activities are expected to pave the way forward in creating a robust platform that will generate long term sustainable income for the Group. 

The Group continues to proactively enhance its human capital development to support the anticipated technical 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 2015. 

Final Dividend 

The Board of Directors declared a final single tier cash dividend of 1.1 sen (previous corresponding period: 2.2 sen) per ordinary share in respect of the financial year ended 30 June 2014 for approval of the shareholders at the forthcoming Annual General Meeting.