KUALA LUMPUR: Dialog Group Bhd, whose net profit rose 43% year-on-year to RM26.93 million in its first quarter ended Sept 30, 2009 (1QFY10), has proposed a two-for-five bonus issue of up to 568.34 million new shares of 10 sen each.

Dialog said yesterday the bonus issue would increase its share capital base to a level that would better reflect the operations of the group which were global and expanding, and the group’s asset base.

The proposed issue marks its sixth bonus issue since its listing on Bursa Malaysia Securities Bhd in 1996, whereby an original 1,000 shares will increase to 88,090 shares, including after share split and share dividends declared.

The bonus issue will be implemented by capitalising RM34.39 million from its revaluation reserve account and up to RM22.44 million from the retained profits account. The exercise is expected to be completed by the first quarter of 2010.

Meanwhile, Dialog said its 1QFY10 net profit climbed 43% from RM18.81 million a year earlier due to increases in engineering and construction (E&C) and plant maintenance activities in Malaysia.

Revenue increased 31% to RM308.85 million from RM236.54 million, while basic earnings per share rose to 1.93 sen from 1.35 sen.

Dialog said the group, being an integrated specialist technical services provider to the oil, gas and petrochemical industry, remained focused on the recurring businesses in the plant maintenance and catalyst handling services and the provision of specialist products and services.

Dialog also said it would continue to seek opportunities to grow its businesses with long-term sustainable income, such as its investments in the tank terminal business.

“Barring any unforeseen circumstances, the group is optimistic that its performance will be favourable for the financial year ending June 30, 2010 in view of the term contracts secured for most of our business activities above,” it added.


This article appeared in The Edge Financial Daily, November 18, 2009.