Dialog Group: Pengerang Remains Key To Success
Dialog Group Bhd, an integrated specialist technical services provider to the oil, gas, and petrochemical industry, has reported 1HFY23 core earnings of MYR259m, up 2% YoY, contributing 43% of its full-year estimate.
Developing Pengerang to its full potential remains the long-term key agenda for Dialog Group's success. Its Phase 3 project (earmarked for long-term downstream/ dedicated terminals ops) is gaining traction post pandemic and will anchor the Group’s growth over the next 10-15 years.
Dialog Group Bhd, an integrated specialist technical services provider to the oil, gas, and petrochemical industry, has reported 1HFY23 core earnings of MYR259m, up 2% YoY, contributing 43% of its full-year estimate.
The YoY increase was largely driven by higher associate profits from its upstream operations acquisition, Pan Orient Energy Corp (POEC), offset by continued high project and operation costs.
Dialog's management believes that developing Pengerang to its full potential is its long-term key agenda, with its Phase 3 project set to anchor growth over the next 10-15 years.
The company plans to expand its terminal business in Tj. Langsat, including the addition of a 24k m3 storage capacity for renewable energy products. Dialog is on track with its 1HFY23 results, and the strength in FY23 is expected to continue, with lower opex and POEC contributions, and gains in Pengerang operations.
The company's total dividend for FY21 was 6.3 sen per share. The research team maintains its BUY recommendation with a MYR4.90 target price, which is SOP-based.
Asir Fatagar
