PETALING JAYA: Dialog Group Bhd’s net profit for its first quarter ended Sept 30, 2021 dropped to RM128.82mil from RM146.62mil in the previous corresponding period, mainly due to higher project costs.

       In a filing with Bursa Malaysia, the oil and gas support services provider said revenue in the quarter rose to RM505.45mil from RM331.66mil a year earlier.

       “The higher revenue was contributed by both Malaysian and international operations, which saw an increase in business activities as the economy is on a path towards recovery,” it said.

       Dialog said the higher revenue reported by its Malaysian operations during the period under review was attributable to increased upstream, midstream and downstream activities.

       “The upstream activities benefited from the higher oil price and production volume, while the newly commissioned Dialog Terminals Pengerang 5 (DTP5) contributed to higher revenue for midstream activities.”

       Commenting on its downstream business, Dialog said its Malaysian team was busy with various engineering, construction and fabrication, as well as plant maintenance projects.

       “These projects are ongoing. However, they are facing unprecedented challenges such as stringent Covid-19 standard operating procedures, supply chain disruptions, higher material price and logistics cost which affect the project schedules and margins.

       “This explained the lower net profit reported by the Malaysia operations in the current quarter under review.”

       On its prospects, Dialog said it remained confident that its business model is well-structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements.

       “The global economic outlook is showing signs of improvement. However, the impact of the prolonged pandemic as well as supply chain disruptions and inflation are dampening the overall outlook and it is uncertain how long this will last,” it said.