PETALING JAYA: Dialog Group Bhd
is on course for another record-high year, with structural growth expected to sustain through financial year 2027 (FY27) and FY28, according to MBSB Research.
In a note, the research house said the “stars are aligned” for Dialog in FY27, supported by several converging factors such as the elevated crude oil price environment benefitting its upstream producing assets, as well as earnings recognition of its 25%-owned Cendramas production sharing contract which began from September 2026.
Additionally, its 150,000 cu m renewable fuel tanks at Langsat were completed in the first quarter of FY27 (1Q27), while the Baram Junior Cluster is expected to see first gas in 2Q27.
MBSB Research also cited stable midstream earnings contribution from the group’s take-or-pay tank terminal leases, and an engineering, procurement, construction and commissioning (EPCC) progress billings upcycle for its 272,000 cu m storage facility serving the PETRONAS-Eni-Euglena biorefinery.
The research house noted that the group is well-positioned to directly benefit from the energy security theme, which is gaining pace as supply disruptions push governments and oil majors to focus on reliable energy access.
“Governments and traders may also look to reduce their reliance on Middle East supply routes and storage hubs by diversifying into South-East Asia, which would support demand for storage capacity in the region as buffer stocks and strategic reserves are built up,” it added.
Altogether, Dialog is able to cover several parts of the energy security value chain, from upstream supply and mid-stream storage to energy transition, MBSB Research added.
Further ahead, FY28 is poised to see more assets joining Dialog’s stable, including a 614,000 cu m storage in PT5 for BP Singapore, and the PETRONAS-Eni-Euglena biorefinery storage facility.
“We believe that these assets will inevitably lift the group’s earnings base and ensure the continuity of Dialog’s earnings per share growth, making it a structurally growing company.”
The research house added that final investment decisions on any of the group’s three more upstream assets, currently in pre-development, would add to earnings visibility, giving further upside to its target price for Dialog.
MBSB Research has maintained a “buy” call on the stock.
