Business

Friday November 20, 2009

Dialog banks on core segments

By EILEEN HEE


PETALING JAYA: Dialog Group Bhd, which provides support services to the petroleum and petrochemical industry, will continue to focus on growing its recurring business in the plant-maintenance and catalyst-handling services segments.

“We have been consistent in our business strategy over the years. We will continue to grow our business that gives us recurring income,” chairman and group managing director Ngau Boon Keat told reporters after the company’s AGM yesterday.

He said the company was looking to invest in tank terminals and put the bulk of its investments in the country.

Ngau Boon Keat ... ‘We have been consistent in our business strategy’

“Dialog is a Malaysian company and 80%-90% of our investments are in Malaysia. Our storage tank in Kertih, for example, has provided a lot of multiplier effects to the economy,” he said.

The company had allocated about RM1bil for its projects, Ngau said, adding that it would also invest heavily in human capital to meet the growing business demand from its customers worldwide.

“We will train Malaysians and use them to go to other parts of the world to provide technical services.”

The catalyst-handling division continued to register strong performance with more than 50% growth in revenue for the financial year ended June 30.

For the first quarter ended Sept 30, its net profit increased 43% to RM26.93mil from RM18.81mil in the previous corresponding period. Its revenue rose 30.5% to RM308.85mil from RM236.54mil previously.

Of the revenue, RM173.79mil was from Malaysian operations.

On its expansion plans overseas, Ngau said the company had already expanded its operations to Saudi Arabia and the US and it had already received orders from Nigeria, Algeria and Qatar.


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