The oil and gas services provider rose as much as 14 sen to RM1.81, adding to the 5% gain yesterday prior to its financial results announcement. It closed 5.4% or 9 sen higher at RM1.76, valuing the group at RM9.94 billion.
The company posted a net profit of RM137.74 million in Q2 from losses of RM129.49 million a year earlier while revenue rose 11.2% to RM756.34 million from RM680 million previously. That Q2 FY2025 loss was Dialog’s first quarterly loss in 25 years.
For the six months ended Dec 31, 2025, net profit surged to RM277.76 million from RM21.48 million a year ago. Revenue was up 7.52% at RM1.41 billion from RM1.31 billion previously.
The company said the strong performance was driven by positive contribution from its businesses, particularly its Malaysia operations which enjoyed healthy tank storage occupancy.
Favourable forex movements on its US dollar liabilities supported its financial performance although the international segment saw reduced business activities, it added.
“The group’s performance underscores the resilience of its integrated business model and ability to navigate fluctuating global oil prices and currency movements through diversified operations,” Dialog said in its financial report.
Its turnaround was positively received by both investors and research houses, indicating that the company is no longer saddled by legacy construction contracts plagued by cost overruns.
In a note today, MBSB Research said current volatile oil prices will boost demand for storage space in the short to medium term and would be a positive development for Dialog’s midstream business.
The group’s mainstay tank terminal business is a beneficiary of the tight supply in Asia with its assets nearly filled to the brim, supporting storage rates and cash flow.
In the upstream segment, CGS International said the award of a production sharing contract for the Cendramas field off Peninsular Malaysia with its partners should contribute to Dialog immediately given that it is a producing asset.
The company was co-founded by its executive chairman Ngau Boon Keat in 1984. He has a 0.5% direct stake and a 19.7% deemed interest in the company as of Sept 22, 2025.
A mechanical engineer by training, Ngau, 77, began his career in 1972 with Mobil Singapore and then worked with Petronas from 1975 to 1980.