Latest news with #DialogGroupBhd
New Straits Times
14 hours ago
- Business
- New Straits Times
Dialog seen ripe for re-rating on potential tank terminal contracts
KUALA LUMPUR: Dialog Group Bhd's stock could see an upward re-rating once long-term tank terminal contracts for its Pengerang Deepwater Terminal (PDT) Phase 3 are secured. Hong Leong Investment Bank Bhd (HLIB Research) said near term potentials include storage leases for ChemOne's aromatics plant and Petronas' joint venture biorefinery. The firm maintained its forecasts and reiterated a 'Buy' call on Dialog, keeping the target price unchanged at RM2.59. "We believe the eventual award of long-term tank terminal contracts for PDT Phase 3 will help re-rate the stock, which is currently trading at a reasonable valuation of 16 times forecast earnings for financial year 2026, compared to its five-year mean of 23 times. "We like Dialog for its recurring income business model and its unique position in riding the future expansion of Pengerang via development of tank terminals," it said in a research note. HLIB Research also highlighted that Dialog's downstream engineering, procurement, construction and commissioning business has swung back to minor profitability in the third quarter of financial year 2025 (3Q25). It said the group had assured that there would be no further cost provisions in anticipation of the official handover of Melamine plant in Kedah and gas compressor plant in Kluang to Petronas by the second half of 2025. On the midstream front, HLIB Research said storage rates edged up slightly to S$6.4 (RM20.98) to S$6.6 (RM21.63) per cubic metre in 4Q25, compared to S$6 (RM19.67) to S$6.5 (RM21.31) over the past year. It noted that this uptick was driven by stronger storage demand from oil traders, spurred by increased crude supply from OPEC+ and softening oil prices amid escalating trade tensions and heightened demand uncertainty. "The temporary shortfall from upstream in 4Q25 should be mitigated by better midstream contribution," it said.
The Star
16-05-2025
- Business
- The Star
Dialog to continue its focus on midstream business
The company said ongoing projects in the upstream segment will count towards its diversification strategy. PETALING JAYA: Dialog Group Bhd will continue to focus on its longer term strategy of growing its sustainable and recurring income. Dialog Group has the second largest independent terminal owner-cum-operator in South-East Asia with a current operating capacity of 5.1 million metres cube. Dialog's midstream business will continue to be its core focus and it will continue to invest in phased capacity expansions for dedicated long-term customers across its mid-stream terminals business portfolio. The group will also focus on the development of Pengerang Deepwater Terminals to transform it into one of the largest petroleum and petrochemical hubs for the wider Asia Pacific region. For new projects in the downstream segment, the group said it will conduct thorough risk assessments for new projects and strategically pursue opportunities that align with its risk management framework and strategic goals. This is due to the current geopolitical and market uncertainties. 'We will take a cautious and selective approach to bidding for engineering, procurement, construction and commissioning contracts to prioritise in-house projects,' it said. In its upstream business, Dialog said it will continue to grow its presence through the development and rejuvenation of oil and gas fields. Ongoing projects here in the upstream segment will count towards its diversification strategy, it said. In its third quarter ended Mar 31, Dialog saw a decline in both its revenue and net profits. Net profits for the third quarter declined year-on-year (y-o-y) by 13.6% to RM134.97mil while revenues dropped 17.6% y-o-y to RM578.81mil. 'The current net profit position is a recovery from the net loss of RM125.6mil in the preceding quarter. 'The performance in the current quarter was driven by contributions from both the company's Malaysia and international operations, as well as share of profits from the group's joint ventures and associates,' it said. Within Malaysia, the group said its performance was driven primarily by midstream and upstream operations. 'The midstream operation reported better performance with increased earnings from higher tank storage occupancy and increased tariff rates at our independent terminals. The upstream operation continued to deliver strong production volume from its assets,' it said. 'The revenue and profits contribution for the current financial quarter was, however, reduced slightly when compared to the same period last year due to lower realised oil prices,' it added. On the international front, Dialog said revenue and profits achieved in the current financial quarter was lower y-o-y due to reduced business activities.
The Star
15-05-2025
- Business
- The Star
Dialog Group maintains positive outlook for FY25
KUALA LUMPUR: Dialog Group Bhd is optimistic about its performance for the financial year ending June 30, 2025 (FY25). 'As the economic environment is expected to remain challenging in the short to medium term, we will continue to build and strengthen our competencies by investing in and upskilling our workforce, and digital transformation to ensure we remain efficient and competitive,' it said in the notes accompanying its financial results. In the third quarter ended March 31, Dialog's net profit fell 13.6% to RM135mil, or earnings per share of 2.39 sen, compared with RM156.2mil, or 2.77 sen in the year-ago quarter. Its revenue fell 17.6% to RM578.8mil from RM702.2mil achieved a year ago. For the nine months ended March 31, Dialog posted a sharply lower net profit of RM156.4mil, down from RM436.6mil, while revenue fell 19% to RM1.9bil from RM2.3bil. It has declared an interim dividend of 1.30 sen per share for FY25, payable on June 26 to shareholders registered in the record of depositors as at June 12. Dialog said it remained focused and steadfast in executing its long-term strategies across the energy sector's upstream, midstream and downstream segments. Backed by a dedicated management team, Dialog said the group is confident that its integrated business model is well-positioned to navigate economic uncertainties, oil price volatility and currency fluctuations. Dialog said it would continue expanding its upstream business by developing and rejuvenating oil and gas fields. The company added that development of the Baram Junior Cluster, a 70:30 joint venture with Petros, started in January 2025 following the final investment decision. Meanwhile, pre-development studies for the RAJA Cluster Small Fields Asset Production Sharing Contract, awarded to DIALOG in December 2024, are currently underway. Dialog, the second-largest independent terminal owner and operator in Southeast Asia with 5.1 million m³ of operating capacity, said its Midstream business will remain a key focus. 'Our focus will be on our ongoing development of Pengerang Deepwater Terminals (PDT) into one of the largest petroleum and petrochemical hubs for the Asia Pacific region. 'Within PDT, Dialog and Petronas Gas Bhd joint venture has commenced work on the liquefied natural gas-driven air separation unit facility,' it said. Dialog is also expanding into renewable fuel storage at Dialog Terminals Langsat 3. The first phase, comprising 24,000 m³ of storage, began operations in February 2025. The second phase, adding 150,000 m³ of capacity, is expected to be completed by September 2026, reinforcing the group's focus on sustainable, recurring income. In its downstream business, Dialog will maintain focus on its core EPCC and maintenance services, adopting a cautious and selective approach to new projects that align with its risk management framework and strategic goals amid market uncertainties.
New Straits Times
15-05-2025
- Business
- New Straits Times
Dialog Group's Q3 net profit falls to RM134.96mil
KUALA LUMPUR: Dialog Group Bhd's net profit for the third quarter ended March 31, 2025 (3Q 2025), decreased to RM134.96 million as compared to RM156.16 million recorded in the same quarter last year. Revenue fell to RM578.80 million from RM702.19 million previously, the group said in a filing with Bursa Malaysia today. "The performance in the current quarter was driven by contributions from both Malaysia and International operations, as well as a share of profits from the group's joint ventures and associates," it said. Within Malaysia, Dialog said the performance was driven primarily by midstream and upstream operations, where the midstream operation reported better results with increased earnings from higher tank storage occupancy and increased tariff rates at independent terminals, while the upstream operation continued to deliver strong production volume from its assets. "The revenue and profits contribution for the current financial quarter were, however, reduced slightly, compared to the same period last year, due to lower realised oil prices," it said. On the international front, Dialog said the revenue and profits achieved in the current financial quarter were lower compared to the corresponding quarter in the previous financial year due to reduced business activities. Meanwhile, in a separate filing, Dialog has announced a payment of an interim cash dividend of 1.30 sen per ordinary share held in the company in respect of the financial year ending June 30, 2025, to be paid on June 26, 2025.
