Dialog Group has recorded a slight decrease in its third quarter revenue results due to slower upstream activities and lower sales.
The group recorded a revenue of MYR 641.4 million (€140 million), which represents a decrease of 4.2% compared to the same quarter in 2015.
Work is well underway on the second phase of the Pengerang Deepwater Terminal which will handle, store and distribute crude oil. Petroleum, chemical and petrochemical feedstock, products and by-products to and from the refinery and petrochemical integrated developemtn complete. Phase two will have 2.1 million m3 of storage capacity and will be completed progressively in 2018 and 2019.
In its interim financial report, the group says that the Malaysia operation remained busy with engineering, construction and fabrication activities from various projects including Pengerang Deepwater Terminal phase 2. However, due to the slow down in upstream activities and lower sales, there was a drop in net profit after tax contribution from Malaysia.
Internationally, net profit after tax contribution for the current financial quarter was higher against the same period last year. This was due to higher fabrication activities in New Zealand and engineering and construction activities in Singapore.
In a statement the group says it is confident that its business model is well structured and can ‘withstand the current oil price volatility and currency movements’.
The statement adds: ‘The drop in oil prices will lower overall costs of processing, manufacturing and production of a wide range of petroleum and petrochemical products. In addition, the strong demand for storage facilities for petroleum products reinforce the group’s strategy to further develop and invest in the Pengerang Deepwater Terminal for the long term. The group will continue to benefit from long term sustainable recurring income when the additional tank terminal facilities start operations.’
Additionally, the group has also embarked on the joint venture with Petronas Gas Berhad for the development of LNG regasification facilities comprising a regasification unit and two units of 200,000 m3 LNG storage tanks with an initial send out capacity of 3.2 million tonnes per annum. It is due to be complete by the end of 2017.