KUALA LUMPUR: Integrated oil and gas service provider Dialog Group Bhd does not think it will be affected by Benalec Holdings Bhd’s land reclamation project in south Johor.
“I don’t think [Benalec is a competitor] because we are different. We are very focused on our [oil terminal] project [in Pengerang], we don’t know what they are doing,” said Dialog executive chairman Ngau Boon Keat after the AGM and EGM yesterday.
“We have our own clients and we have our own purpose. We have taken about three years to get where we are. I mean the world is so big, anybody can do what they want to do,” he said.
On Nov 10, Benalec announced that it had secured the rights to reclaim two large tracts of land in south Johor — Tanjung Piai (3,485 acres) and Pengerang (1,760 acres).
Benalec said the reclamation is to facilitate the development of the petroleum and petrochemical hubs and maritime industrial parks situated on the Pengerang and Tanjung Piai coasts.
However, Dialog has begun the first phase of its 500-acre independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014, according to Ngau.
The terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
The terminal will be jointly developed by Dialog, Vopak Terminal Pengerang BV and the State Secretary of Johor Inc (SSJI). A joint venture company will be formed in which Dialog and Vopak will hold 90% equity interest with the rest held by SSJI.
Ngau said Dialog will mainly focus on the Pengerang project because of its size. He said the Pengerang Terminal is 10 times bigger than the Kertih Terminal — the first centralised tankage facility (CTF) project by Dialog — consisting of petrochemical tanks with storage capacity of 400,000 cubic metres.
The entire development of Pengerang Terminal will eventually support about five million cu m of storage capacity and will take about 10 years to fully develop.
On its ongoing expansion of tank terminals in Tanjung Langsat in Johor, Ngau said Dialog is promoting more investments in the project.
He said Dialog plans to start building Langsat Terminal Three after the completion of Langsat Terminal Two, which is expected to be concluded in December this year. Langsat Terminal One was completed in August.
Ngau said Dialog will continue to look for opportunities to complement its services, such as its purchase of a 51% stake in Anewa Engineering Pvt Ltd this year. Anewa is an outsourcing company which provides engineering design to customers, mainly multinational companies in India, the Middle East and Southeast Asia in the oil, gas and petrochemical industry.
On the weakening global economic environment, Ngau said Dialog will not be severely affected.
“Our business model does not depend on just building new plants or new investments. Our focus is on recurring income, such as from terminals, maintenance, and special product services — where oil prices do not matter,” he said.
He said recurring income accounts for about 80% of Dialog’s revenue.
Dialog recently posted a 34.5% increase in net profit for its 1QFY12 ended Sept 30. Net profit rose to RM44.54 million from RM33.09 million a year ago, while revenue increased 35% to RM355.2 million from RM263.08 million.
As at Sept 30, Dialog had cash reserves of RM215 million against RM123.4 million in short- and long-term borrowings, translating into a net cash position of RM91.6 million.
Dialog said the improved performance was due to higher contribution from its operations in Australia and New Zealand. The consolidation of Fitzroy Engineering Ltd, a fabrication and multi-discipline engineering company based in New Zealand, was also a major contributor to the increase, it said.
For FY11 ended June 30, Dialog posted a 28.7% increase in net profit to RM152.3 million from RM118.3 million, on a 6.1% increase in revenue to RM1.21 billion from RM1.14 billion a year ago.
Dialog closed one sen lower at RM2.40 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
“I don’t think [Benalec is a competitor] because we are different. We are very focused on our [oil terminal] project [in Pengerang], we don’t know what they are doing,” said Dialog executive chairman Ngau Boon Keat after the AGM and EGM yesterday.
“We have our own clients and we have our own purpose. We have taken about three years to get where we are. I mean the world is so big, anybody can do what they want to do,” he said.
On Nov 10, Benalec announced that it had secured the rights to reclaim two large tracts of land in south Johor — Tanjung Piai (3,485 acres) and Pengerang (1,760 acres).
Ngau: The world is so big, anybody can do what they
want to do.
want to do.
Benalec said the reclamation is to facilitate the development of the petroleum and petrochemical hubs and maritime industrial parks situated on the Pengerang and Tanjung Piai coasts.
However, Dialog has begun the first phase of its 500-acre independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014, according to Ngau.
The terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
The terminal will be jointly developed by Dialog, Vopak Terminal Pengerang BV and the State Secretary of Johor Inc (SSJI). A joint venture company will be formed in which Dialog and Vopak will hold 90% equity interest with the rest held by SSJI.
Ngau said Dialog will mainly focus on the Pengerang project because of its size. He said the Pengerang Terminal is 10 times bigger than the Kertih Terminal — the first centralised tankage facility (CTF) project by Dialog — consisting of petrochemical tanks with storage capacity of 400,000 cubic metres.
The entire development of Pengerang Terminal will eventually support about five million cu m of storage capacity and will take about 10 years to fully develop.
On its ongoing expansion of tank terminals in Tanjung Langsat in Johor, Ngau said Dialog is promoting more investments in the project.
He said Dialog plans to start building Langsat Terminal Three after the completion of Langsat Terminal Two, which is expected to be concluded in December this year. Langsat Terminal One was completed in August.
Ngau said Dialog will continue to look for opportunities to complement its services, such as its purchase of a 51% stake in Anewa Engineering Pvt Ltd this year. Anewa is an outsourcing company which provides engineering design to customers, mainly multinational companies in India, the Middle East and Southeast Asia in the oil, gas and petrochemical industry.
On the weakening global economic environment, Ngau said Dialog will not be severely affected.
“Our business model does not depend on just building new plants or new investments. Our focus is on recurring income, such as from terminals, maintenance, and special product services — where oil prices do not matter,” he said.
He said recurring income accounts for about 80% of Dialog’s revenue.
Dialog recently posted a 34.5% increase in net profit for its 1QFY12 ended Sept 30. Net profit rose to RM44.54 million from RM33.09 million a year ago, while revenue increased 35% to RM355.2 million from RM263.08 million.
As at Sept 30, Dialog had cash reserves of RM215 million against RM123.4 million in short- and long-term borrowings, translating into a net cash position of RM91.6 million.
Dialog said the improved performance was due to higher contribution from its operations in Australia and New Zealand. The consolidation of Fitzroy Engineering Ltd, a fabrication and multi-discipline engineering company based in New Zealand, was also a major contributor to the increase, it said.
For FY11 ended June 30, Dialog posted a 28.7% increase in net profit to RM152.3 million from RM118.3 million, on a 6.1% increase in revenue to RM1.21 billion from RM1.14 billion a year ago.
Dialog closed one sen lower at RM2.40 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
