Dialog Group Bhd
20 May 2019
Source: The Edge
RHB RESEARCH (MAY 15): The group recorded 3QFY1 9 core net profit of RM143. 7 million, bringing 9MFY19 earnings to RM395.1 million. This is above estimates, mainly due to the earlier-than-expected full commissioning of Pengerang Phase 2.
Core profit surged 22 % y-o-y in 9MFY19, driven by higher contributions from JV and associates, primarily driven by the commencement of remaining tank terminal capacities in Pengerang Phase 2 in 3QFY19.
We are aware that Pengerang Phase 3 will proceed after Phase 2 is completed. Dialog also announced that it has commenced the construction of a storage terminal for Pengerang Phase 3, whereby 430,000 cu m capacity will be constructed for clean petroleum products. A term contract has been secured with BP Singapore with a take-or-pay structure spanning 10 years.
Phase 3 has been allocated 300 acres of land for development, comparable to the combined acreage of Phases 1 and 2. We expect to see long-term growth opportunities in terms of tank terminal capacities, to be anchored by Phase 3, going forward.