Dialog 3Q profit rises 6% y-o-y to RM49.6m, dividend 1.1 sen per share

by **Cals** Fri 16 May 2014, 02:19

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Thursday, 15 May 2014 19:38

KUALA LUMPUR (May 15): Dialog Group Bhd’s net profit rose 6% year-on-year (y-o-y) to RM49.6 million in the third quarter ended Mar 31, 2014, from RM46.8 million a year ago.

Revenue inched up 0.3% y-o-y to RM638.3 million from RM636.6 million.

Dialog said it declared an interim single-tier dividend of 11% per ordinary share, which is 1.1 sen per share, in respect of the financial year ending Jun 30, 2014.

In a statement to Bursa Malaysia, the oil & gas service provider said its higher profit was due to larger revenue and improved net profit margin from its international operation.

Dialog said revenue from its international operation was higher mainly due to stronger sales of specialist products and services in the Middle East, India, Africa and Russia as well as increased fabrication activities in New Zealand.

But, the firm said revenue from its Malaysian operation for the current quarter was lower as registered by engineering and construction and plant maintenance activities.

For the nine-month period, net profit chalked RM163.6 million versus RM141.1 million in the previous period while revenue recorded RM1.91 billion from RM1.56 billion a year ago.

Dialog said the higher net profit was in line with higher revenue and increased contribution from joint ventures.

The firm said the larger revenue was due to higher contribution from engineering & construction and plant maintenance activities in Singapore.

For its Malaysian operation, revenue was also higher, contributed by all main activities.

“The oil and gas sector in Malaysia is expected to remain a main growth driver for the Malaysian economy contributing some 20% of the nation’s gross domestic product,” said Dialog on prospects ahead.

“The group is poised to benefit from the positive industry outlook as the group strategically grows the core businesses,” it said.