Maybank IB believes there may be potentially up to two more tank terminal jobs for Dialog over the next 12 months.
PETALING JAYA: Dialog Group Bhd
is in a position to potentially bag new tank terminal jobs over the next 12 months, says Maybank Investment Bank Research (Maybank IB).
This, it said, could help offset concerns on recent reported developments at the US$5.3bil Pengerang Energy Complex (PEC) project where its owner and operator ChemOne is reported to be experiencing a setback in achieving a financial close.
This is due to a said cost escalation on the part of its construction partner with an “upward revision” of the engineering, procurement and construction (EPC) costs from the initial US$2.5bil by its EPC partner Maire SpA, it noted.
PEC is envisioned to produce 2.5 million tonnes of aromatics, 3.9 million tonnes of petroleum and 50,000 tonnes of hydrogen annually.
According to a report, ChemOne is understood to be exploring other EPC contractors, including parties from China.
“But we continue to like Dialog for its recurring income portfolio and cash flow stability from its midstream tank terminal assets,” Maybank IB said.
Maybank IB maintained its ‘buy’ rating, earnings forecasts and sum-of-parts or SOP-based target price of RM2.32 and is its preferred pick for the sector.
“We believe there may be potentially up to two more tank terminal jobs for Dialog over the next 12 months.
“Despite the potential delay in the PEC project, we are not too concerned with Dialog’s growth prospects,” it said.
“Our channel checks have indicated that the company are also in talks at the intermediate/ finalisation stage with other oil companies and or multinational corporations for dedicated tank terminal contracts,” it added.
Maybank IB also noted that it has updated Dialog’s environmental, social and governance score.
An above average score of 55 has been assigned out of 100, against a previous score of 54.
The research house said the increase is attributed to improvement in Scope 1 emissions; increase in share of renewable energy used; and the decline in total water consumption and intensity.
“However, it was partially mitigated by an increase in total waste generated and a slight increase in the lost time injury frequency rate.”
Dialog’s single-largest shareholder is the Employees Provident Fund, which owns a 16.7% equity interest.
In its financial results for the fourth quarter of financial year 2025 (4Q25) and full financial year ended June 30 (FY25), Dialog saw net profit grow 6.5% year-on-year (y-o-y) for 4Q25 to RM147.4mil despite a 24.9% fall in revenue to RM608.3mil.
The company said the improved profitability in 4Q25 was due to contributions from both Malaysia and international operations, as well as share of profits from the group’s joint ventures and associates.
