Maybank IB raises Dialog’s 2018-2020 earnings forecast - New Straits Times

Maybank IB raises Dialog’s 2018-2020 earnings forecast
15 Nov, 2017
Source: New Straits Times


KUALA LUMPUR: Following the capacity expansion of Dialog Group Bhd’s two tank terminal facilities in Tanjung Langsat and Pengerang, Maybank Investment Bank Bhd (Maybank IB) has raised the oil and gas company’s financial year 2018 to 2020 earnings forecasts by four per cent per year.

Dialog was already on a progressive capacity expansion drive in both green and brownfield facilities, and its land would be tapped to realise this aspiration, said Maybank IB in a report.

The research house is also positive on Dialog’s recent venture with Johor Corporation (JCorp) to lease two parcels of land in Tanjung Langsat for RM62 million for 30 years and to acquire JCorp’s storage facilities for RM91 million.

The acquisition price for JCorp’s storage facilities equated to RM910 per cubic metre, relatively on par with MISC Bhd’s Langsat Terminal purchase at RM825 per cubic metre, said Maybank IB.

Dialog intends to expand its storage capacity at Tanjung Langsat by 300,000 cubic metres. With that, its overall capacity at Tanjung Langsat will rise from 647,000 to 947,000 cubic metres.

“We understand Dialog has plans to expand its tank storage operations at Pengerang, too.” Dialog’s Pengerang operationshave the capacity to add another five million cubic metres of storage facilities.

Maybank IB has upgraded Dialog to “buy” from “hold” and raised its target price by 13 per cent to RM2.63.


Dialog Group Bhd’s Pengerang terminal.