PETALING JAYA: Dialog Group Bhd’s net profit for the fourth quarter ended June 30 fell slightly on a year-on-year (y-o-y) basis by about 12% to RM138.54mil as revenue dipped by some 3% to RM522.14mil.

       Basic earnings per share in the fourth quarter was at 2.46 sen while for the entire financial year 2021 (FY21), it stood at 9.63 sen.

       The group has proposed a final dividend of 1.90 sen which amounts to a payout of about RM107.3mil.

       Dialog said the proposed dividend payout is in view of the extremely challenging economy in the short to medium term and in view of the current investment opportunities.

       “The board has decided to conserve cash by recommending a final cash dividend of 1.90 sen in respect of the current financial year.”

       The group said in the notes accompanying its financial results that despite a lower revenue and net profit from its downstream activities, it had seen increased contributions from recurring income business such as the midstream operations.

       “The storage capacity of Dialog Terminals Langsat and Pengerang Independent Terminals Sdn Bhd continues to be fully leased out.

       “In addition, the newly commissioned Dialog Terminals Pengerang 5, which is dedicated to BP Singapore Pte Ltd, has commenced its commercial operations in March 2021,” it said.

       On its international activities, the group said revenue from this segment in the current financial year was lower against last year, mainly due to reduced business as a result of the challenging market and economic downturn from the prolonged pandemic.

       “Despite the lower revenue, net profit from international operations was higher, contributed by favourable performance from fabrication activities,” it said.

       Dialog also pointed out that in its previous financial year, it had booked a RM28.5mil non-cash fair value gain from business combination of a jointly controlled entity to a subsidiary.

       This had resulted in a total profit after tax of RM648.1mil for that year, it said.

       “During the current financial year under review, the group’s operations continued to be busy with the development of its own internal midstream assets.

       “The construction works under Phase 3A of Pengerang Deepwater Terminals were completed in March 2021 as scheduled while the capacity expansion of Dialog Terminals Langsat 3 is scheduled for completion by end-2021,” it said.

       The focus on the development of the group’s own internal midstream terminal assets during the financial year resulted in the lower revenue for Malaysian operations, it added.

       Moving forward, the group said it remains confident that its business model is well structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements.

       “While the world is experiencing a prolonged economic downturn due to the Covid-19 pandemic, which had caused demand disruptions of petroleum products, Dialog has maintained a very prudent approach and taken proactive steps in managing its finances.

       “Capital expenditure and operating expenses have been reviewed and cost reduction measures are ongoing without jeopardising our operations and service delivery to customers,” it added.

       Following the operations of phase one and phase two of Pengerang Deepwater Terminals (PDT), the group said its entry into the long-term storage agreement with BP Singapore for phase three of the PDT is another significant milestone for itself.

       This would be the catalyst for further development of the PDT in the coming years, it said.

       Dialog also said that land reclamation for phase three of this project had been completed.

       Meanwhile, the group said it is taking proactive steps in the cashflow management of its upstream assets together with its respective partners due to the disruption in the operations of petroleum products caused by the pandemic.

       Dialog said it remains optimistic about the prospects of the upstream sector and is confident that it will continue to contribute positively to the group’s results.

       “Notwithstanding that the economic environment is expected to remain extremely challenging in the short to medium term, we will remain focused on delivering on long-term goals.

       “Barring any unforeseen circumstances, the group is confident that its performance will remain profitable in FY22,” it added.