KUALA LUMPUR: Dialog Group Bhd's earnings dropped 11.5% in the last quarter ended June 30 on lower contribution from its downstream business.

       The group said its tank farm operations remained strong.

       Net profit in the three-month period fell to RM138.5mil from RM156.6mil. Revenue declined to RM522mil from RM540mil.

       For the full year ended June 30, 2021 (FY21), Dialog made a net profit of RM543mil compared with RM630mil previously.

       "Despite the lower revenue and net profit reported in the downstream activities, the Group saw increased contributions from its recurring income business such as midstream business," it said in a filing today.

       The company said its storage capacity of Dialog Terminals Langsat and Pengerang Independent Terminals Sdn Bhd continued to be fully leased out.

       "In addition, the newly commissioned Dialog Terminals Pengerang 5 with storage capacity of 430,000 m3 dedicated for BP Singapore Pte. Limited has commenced its commercial operations in March 2021," it added.

       Dialog said the economic environment was expected to remain "extremely challenging" in the short to medium term.

       "In the upstream sector, due to the disruption in the operations of petroleum products caused by the COVID-19 pandemic, the Group is taking proactive steps in the cash flow management of our upstream assets together with our respective partners," it said.

       "The Group remains optimistic of the future prospects of upstream sector and is confident it will continue to contribute positively to the Group's results," it added.？