Business Times (Malaysia): Petrochem investments to return soon, says Dialog: “…multi-national corporations (MNCs) such as Petroliam Nasional Bhd, Royal Dutch Shell Group and ExxonMobil are expected to build more petrochemical plants by the end of next year.”: Wednesday November 23, 2005
SOUTH-EAST Asian nations, especially Malaysia and Singapore, may soon see a return of investments in new petrochemical plants, due to high oil prices and strong global demand for oil-based products.
Dialog Group Bhd chairman and managing director Ngau Boon Keat said multi-national corporations (MNCs) such as Petroliam Nasional Bhd, Royal Dutch Shell Group and ExxonMobil are expected to build more petrochemical plants by the end of next year. This spells big opportunities for companies like Dialog that construct oil and gas facilities for oil, gas and petrochemical giants.
Spending on such plants in South-East Asia halted in 2001 with MNCs shifting their focus on downstream businesses to China, Ngau said. This was blamed on the negative perception of the region following the September 11 terrorist attacks in New York.
"I cannot be specific, but there are plans by these MNCs for new downstream projects in the oil and gas industry in Malaysia and Singapore in particular.
"Investments in petrochemical plants are coming back to the region. We are very optimistic about our (current and future) performance," he told reporters after Dialog's annual general meeting in Petaling Jaya yesterday.
Ngau said Dialog posted higher revenues and profits from 1999 to 2002 because there were more downstream activities then.
The company achieved its highest net profit and revenue of RM75.3 million and RM367.4 million respectively in 2002.
Its net earnings dipped 12 per cent to RM32.69 million for the year ended June 30 2005 from RM37.54 million a year ago. Revenue, however, went up by 37.2 per cent to RM254.14 million from RM185.27 million.
Ngau said the company now gets 70 per cent of its revenue from local activities.
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