August 16, 2017 [Dialog Group Bhd.] - The Group delivered a strong financial performance for the financial year ended 30th June 2017 with revenue of RM3.39 billion, an increase of 33.9% from last year. Group’s net profit after tax increased by 23.8% to RM373.1 million from RM301.3 million recorded last year.
Performance analysis
As for the current reporting quarter, the Group recorded revenue of RM 968.9 million with net profit after tax of RM100.9 million, higher by 35.1% and 28.9% respectively against corresponding quarter last year.
The strong financial result achieved in the current financial year was mainly attributable to higher contributions from the Group’s joint ventures which recorded an increase by 51.1% to RM107 million from RM70.8 million recorded in previous financial year.
During the financial year under review, the Malaysia operation was busy in the midstream and downstream activities with engineering, construction and fabrication works from various on-going projects such as the Pengerang Deepwater Terminal Phase 2, Jetty Topside works for Samsung in Pengerang and the construction of plasticizer plant for UPC Chemicals in Kuantan. These well executed activities had contributed to the higher results delivered by the Malaysia operation despite the slower upstream activities experienced during the financial year.
The Group’s International operation also recorded a better financial performance in the current financial year against last year primarily driven by the increased downstream activities in Singapore and Saudi Arabia.
The Group’s profit before tax of RM121.9 million was 1.8% higher against RM119.7 million recorded in the preceding quarter. This was in line with the 6% higher revenue registered in the current financial quarter.
Prospects
As a leading integrated technical services provider to the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry, DIALOG remains confident that its business model is well structured and can withstand the current oil price volatility and currency movements. The Group’s financial track record has proven that DIALOG’s business is well risk-managed and sustainable.
With the on-going operations of Pengerang Deepwater Terminal Phase 1 and current construction of Phase 2, the Group is now working towards expanding Phase 1 as well as securing new potential partners for Phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals. Phase 3 and future phases will be developed on a total of approximately 800 acres comprising reclaimable land and the buffer zone. Further development of the Pengerang Deepwater Terminal will provide more opportunities for the Group’s engineering, construction, fabrication and plant maintenance services.
In the upstream sector, the Group is actively developing new reserves from the existing contracts. At the same time, the Group is also on the lookout for viable production assets, which may become available for possible acquisition.
The Group continuously reviews its resources to ensure efficient and effective utilisation and will continue to look for new opportunities to enhance its recurring income streams. In order to sustain its continuous growth, the Group will further improve and strengthen the skills of its manpower.
Barring any unforeseen circumstances, the Group is optimistic that it will continue to deliver a strong performance for the financial year ending 30 June 2018.
Final Dividend
a) The Board of Directors, pursuant to the Company’s Articles of Association, recommends a final dividend of 1.45 sen (previous corresponding year: 1.2 sen) per ordinary share in respect of the current financial year for approval of the shareholders at the forthcoming Annual General Meeting.
b) The total dividend for current financial year of 2.65 sen per ordinary share amounting to approximately RM148,874,000 comprises the following and represents an increase of 20% compared to previous financial year of 2.2 sen per ordinary share amounting to RM116,860,368:-
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(i) |
Interim dividend of 1.2 sen per ordinary share amounted to RM66,874,448 |
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(ii) |
Proposed final dividend of 1.45 sen per ordinary share of approximately RM82,000,000 |
The total dividend for the current financial year is in line with the Company’s dividend policy of payout ratio of at least 40% of profits attributable to shareholders of RM370.6 million.
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