The oil and gas (O&G) contractor’s stellar performance is a stark contrast to the gloom in the O&G sector, as the price of crude oil dropped to a six-year low.

The company said it will continue “to deliver a healthy performance” for FY16.

Dialog said its strong performance during the fourth quarter was underpinned by the Pengerang Deepwater Terminal project.

Phase 1 of the Pengerang Deepwater Terminal, with its storage capacity of 1.3 million cu metres fully leased out, is in full operations.

“To-date, more than 200 vessels including supertankers have used the terminal for loading and unloading purposes,” Dialog said.

Meanwhile, the engineering, procurement, construction and commissioning (EPCC) work on Phase 2 of the storage tank farm, valued at RM6.3bil, has already started.

“The group is now working towards securing new potential partners for subsequent phases of the Pengerang Deepwater Terminal, which include the development of more petroleum, petrochemical and liquefied natural gas storage facilities,” it said.

In addition, other projects and the upstream activities had also contributed positively to the better financial results.

“These better performances were, however, offset by lower sales in specialist products and services,” it said.

On the international front, revenue for the current reporting quarter and year-to-date was lower by 20% against the same period last year.

Dialog said this was mainly attributable to low activities in engineering, construction and plant maintenance in Singapore and fabrication in Australia and New Zealand and lower sales of specialist products and services.

“Despite the lower revenue, international operations recorded a higher net profit after tax by 20.8% for the financial year, mainly due to the gain on disposal of other investments in quarter two of the current FY.”

Separately, Dialog said the group’s share of joint venture (JV) results for the current year was lower when compared to the last financial year.

“This was mainly attributable to the share of operating and finance cost in Pengerang Independent Terminals, which recently commenced its full operation, and the write-off of a non-recoverable cost in a JV that involves upstream activities in quarter two of the current FY.”

For its full-year ended June 30, Dialog’s net profit increased to RM275.13mil from RM215.87mil in the previous corresponding period, while revenue was lower at RM2.36bil from RM2.55bil previously.

On its prospects ahead, the company said it was confident that its business model was well structured and could withstand the current oil price volatility and currency movements.

“The demand for storage facilities is strong for crude oil and products. Further development of the Pengerang Deepwater Terminal will provide more opportunities for the group’s EPCC and fabrication services.

“The group will continue to benefit from long-term recurring rental income derived from additional tank terminal facilities when they go into operations.”