Malaysian Energy Engineer Making Money from Storage
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Dialog Group Berhad.
Background
Dialog Group Berhad is a Malaysian engineering and construction company focused on services for the petrochemical and oil and gas sector, and storage of LNG, oil and petrochemicals.
DLG is currently involved in construction and development of regasification and storage tank units with progressive completion expected during 2017-2019.
Business Description
Dialog Group offers integrated technical services for the upstream and downstream sectors of the global oil, gas, and petrochemical industries.
Upstream services include drilling, while logistics or midstream services include LNG tank terminals and supply bases. Downstream services are mainly engineering and construction (E&C), and plant maintenance.
Its major E&C projects include the Pengerang Deepwater Terminal for oil and gas storage, the first of its kind in Southeast Asia, which will be completed in 2019.
PETRONAS’ (PTG MK) Pengerang Integrated Complex, which has a total storage capacity of 2.8m m3, is going to be expanded in Phase 2 that is now under construction comprising 22 petroleum tanks and a 34-tank petrochemical storage terminal. Phase 3 involves the development of regasification facilities and LNG storage (400,000m3).
Income from downstream tank storage rental and maintenance should remain stable due to less direct impact from lower oil prices.
Leadership
The Chairman of the Board is Ngau Boon Keat and he is also the co-founder of the company. He has been with the company since 1984 and was appointed to the Board of Directors on 2 January 1990.
Mustaffa Kamal Abu Bakar joined Dialog Group in 2001 and he is the Chief Operating Officer of the company.
When you look at the Profitable Growth rank in the chart below you’ll see that under Mustaffa Kamal Abu Bakar’s leadership DLG has been ranked in the top-three deciles on Profitable Growth.
World Class Benchmarking
Profitable Growth fell back to #3 in the past 12 months. This means DLG ranks better than 1,085 of 1,550 medium Industrials companies globally.
Profitability fell one step to #3 as well. Growth fell to #6 from #4 and is now ranked below average in the Industrials sector.
Asset utilization and Profit margin maintained their ranks. Sales growth improved to #7 from #9. But the Margin change worsened to #4 from #2 and dragged down the Growth rank.
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