KUALA LUMPUR (Nov 14): Dialog Group Bhd’s net profit in the first quarter ended Sept 30, 2023 (1QFY2024) rose 5.07% to RM132.17 million, from RM125.79 million in 1QFY2023, largely due to better performance from its international operations and higher share of results from joint ventures (JVs) and associates.

The group’s earnings per share for 1QFY2024 increased to 2.34 sen from 2.23 sen in 1QFY2023, its Tuesday bourse filing showed. Quarterly revenue was 9.66% higher at RM780.45 million, compared with RM711.70 million previously, underpinned by higher sales of specialist products and services in various countries, and increased activities at the Jubail Supply Base

“In the current financial quarter, the group’s international operations reported higher revenue and higher net profit after tax from increased sales of specialist products and services in various countries, and increased activities at the Jubail Supply Base in Saudi Arabia. The engineering, construction, fabrication and plant maintenance activities in Singapore and New Zealand also contributed positively to the group’s performance due to the improved business environment. The share of results from joint ventures and associates for the current financial quarter was also higher, compared to the corresponding quarter last year, attributable to increased contributions from terminals operations, due to higher tank storage occupancy rate,” it said.

Its Malaysian business, on the other hand, saw lower earnings during the quarter, mainly due to downstream project cost overruns and losses caused by the unprecedented challenges brought on by the Covid-19 pandemic, conflict in the Ukraine, inflationary pressures, and manpower constraints.

In comparison with the immediate preceding quarter (4QFY2023), the group’s net profit was up 4.25% from RM126.78 million, while revenue jumped 13.11% from RM690 million.

Moving forward, as a leading integrated technical service provider that is diversified across the upstream, midstream, and downstream businesses of the energy sector, Dialog said the group will remain focused and steadfast in the pursuit of its key long-term strategies.

“In the upstream business, the general outlook of the oil market continues to see an improvement, following the disruption to demand caused by global events. Against this backdrop, the group will continue to grow its existing upstream business through the rejuvenation, redevelopment, and operatorship of producing and mature oilfields.

“In the downstream business, we will continue to leverage on our strengths and established track record in integrated technical services, comprising engineering, procurement, construction and commissioning, plant maintenance and catalyst handling services, and specialist products and services,” it said.

Meanwhile, the group remains optimistic of its positive performance for the current financial year.

Shares in Dialog closed one sen or 0.48% higher at RM2.11 on Tuesday, giving it a market capitalisation of RM11.91 billion.

Year to date, the stock has fallen 29 sen or 12.08%.