Saturday, November 26, 2011

Dialog banks on income from tank terminals

PETALING JAYA (Nov 24): Despite the gloomy global economic outlook, integrated oil and gas services specialist company, DIALOG GROUP BHD [], is optimistic of remaining bullish next year, bolstered by its recurring income from tank terminals, maintenance and services.

Executive Chairman Ngau Boon Keat said 80 per cent revenue came from recurring income.

The group posted RM1.2 billion revenue for the financial year ended June 30, 2011, with RM160.1 million after-tax profit.

"The economic situation may not be so good, but we're doing OK. We have major projects in Tanjung Langsat, Pengerang, and in Bintulu. Our business model doesn't depend on building new plants or (making) new investments," he told reporters after the group's AGM and EGM on Thursday.

Ngau said next year the group would concentrate on the Pengerang Independent Deepwater Terminal and Tanjung Langsat Terminal.

He said the Pengerang terminal would keep the group busy for at least seven years.

With RM2 billion full development cost, the terminal's first phase is expected to be completed by 2013, he said.

As the project develops, its cost can swell up to RM10 billion by 2017, depending on the project requirements, Ngau said.

Meanwhile, the expanding Tanjung Langsat Terminal is already contributing to the group's revenue.

"We will continue to promote investments in Tanjung Langsat," he said.

To date, the group's capital commitment for tank-related investments are about RM300 million and another RM225 million for non-tank related projects.

Dialog would continue to look for other opportunities which can complement its current services and can add value to the group, he said.

On overseas operations, which accounted for about 50 per cent of its turnover, Ngau said most of the jobs were specialised services.

"We are in all over the world and will go whereever the client needs us to be," he said.

Moving forward, the group would keep on tendering for projects but would not take more than what it could handle, he added. - Bernama

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