November 22, 2017 [The Edge Markets] - Dialog Group Bhd's net profit nearly doubled to RM160.93 million in the first financial quarter ended Sept 30, 2017 (1QFY18) from RM81.34 million a year ago, on the back of a fair value gain of investment properties at RM65.6 million.
This follows the acquisition of the remaining 45% stake in a jointly controlled entity, Centralised Terminals Sdn Bhd, which has been renamed as Dialog Terminals Sdn Bhd, in the current quarter under review.
Earnings per share rose to 2.86 sen in 1QFY18 from 1.54 sen in 1QFY17. Quarterly revenue also climbed 19.1% to RM778.66 million from RM653.55 million.
On prospects, Dialog said it remains confident that its business model is well structured and can withstand the current oil price volatility and currency movements.
“Barring any unforeseen circumstances, the group is optimistic that its performance will remain strong for the financial year ending June 30, 2018,” it said.
“The construction of Phase 2 of the Pengerang Deepwater Terminal in Johor is on schedule. We are also securing new potential partners for Phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals,” it said.
The group added that it is planning to expand Langsat Terminal (Three) in Tanjung Langsat, Johor, into a 300,000 cu m storage facilities, which is in line with its strategy to grow sustainable and recurring income thereby further enhancing shareholders’ value in the long term.
“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,” it added.
Dialog shares closed unchanged at RM2.30 today, with 12.95 million shares done, giving it a market capitalisation of RM12.98 billion.
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