DIALOG (7277) : Dialog sees no great impact from weak oil prices
KUALA LUMPUR: Dialog Group Bhd will not be greatly impacted by declining global crude oil prices, Executive Chairman Tan Sri Dr Ngau Boon Keat said today.
Speaking to reporters after the group's annual general meeting, Ngau said this was due to Dialog's strategy of splitting its businesses evenly over the oil and gas support services sector spanning downstream, midstream and upstream activities.
"Low crude oil prices may affect the upstream business slightly. However, the midstream and downstream will be alright," he said.
"Usually when oil prices are down, transfer pricing to the downstream businesses is lower, which means there will be more money to allocate towards budgets for maintenance or expansion," he added.
Meanwhile, Ngau said construction of Phase 2 of the Pengerang Terminal would start in mid-2015, and is expected to be operational by end-2017.
Phase 2 will house storage terminals for liquefied natural gas and tankage for the Petronas' Refinery and Petrochemical Integrated Development (RAPID).
http://www.theedgemarkets.com/en/node/170759
KUALA LUMPUR: Dialog Group Bhd will not be greatly impacted by declining global crude oil prices, Executive Chairman Tan Sri Dr Ngau Boon Keat said today.
Speaking to reporters after the group's annual general meeting, Ngau said this was due to Dialog's strategy of splitting its businesses evenly over the oil and gas support services sector spanning downstream, midstream and upstream activities.
"Low crude oil prices may affect the upstream business slightly. However, the midstream and downstream will be alright," he said.
"Usually when oil prices are down, transfer pricing to the downstream businesses is lower, which means there will be more money to allocate towards budgets for maintenance or expansion," he added.
Meanwhile, Ngau said construction of Phase 2 of the Pengerang Terminal would start in mid-2015, and is expected to be operational by end-2017.
Phase 2 will house storage terminals for liquefied natural gas and tankage for the Petronas' Refinery and Petrochemical Integrated Development (RAPID).
http://www.theedgemarkets.com/en/node/170759
