Dialog's Shares Ease At Mid-Morning Despite Reporting Higher 3Q Net Profit
KUALA LUMPUR, May 14 (Bernama) -- Dialog Group Bhd’s shares traded lower at mid-morning on Thursday despite reporting a higher net profit for the third quarter ended March 31, 2026 (3Q 2026).
At 10.36 am, the counter fell three sen or 1.40 per cent to RM2.11 with 2.27 million units changing hands.
The oil and gas (O&G) company’s net profit widened to RM148.33 million in 3Q 2026, compared with RM134.97 million in the same period a year ago, and its revenue increased to RM696.85 million from RM578.81 million previously.
MBSB Investment Bank Bhd remains optimistic over Dialog’s prospects in the remaining financial year and expects the successful pivoting toward renewable energy storage amid the volatile oil market to contribute positively to the group.
Despite the global economic jitters and geopolitical tensions in West Asia, Dialog is set to maintain its integrated operational strategy, it said in a note.
“Given that Dialog’s performance is within our earnings expectations, we make no changes to our earnings forecast. We maintain a ‘buy’ call for Dialog, with a target price (TP) of RM2.55,” it said.
Moving forward, the investment bank expects the midstream segment to remain as Dialog’s main bread and butter, notably when traders are more prone to contango amid the geopolitical tensions in West Asia.
The group’s focus on recurring income through capacity expansion, long-term storage fees and energy transition solutions creates a shield against oil price volatility, it said.
Meanwhile, Hong Leong Investment Bank (HLIB) continues to favour Dialog for its diversified business model, which remains resilient in a volatile environment, with its midstream tank terminal business providing stable recurring income, while its upstream exposure offers leverage to higher Brent prices.
It noted that New Zealand is exploring fuel storage options in Malaysia and Singapore, as the Iran war exposes the risks of limited domestic storage capacity and overreliance on a single supply route.
“We believe this could further elevate Pengerang’s strategic importance as a regional storage and logistics hub, with Dialog emerging as a key beneficiary, given its strong tank terminal exposure and 242.81 hectares of available buffer land for future expansion.
“We like Dialog for its recurring income business model and its unique position in riding the future expansion of Pengerang via the development of tank terminals,” it said.
As such, HLIB is maintaining its ‘buy’ call on Dialog, with a TP of RM2.52 on the belief that the eventual award of long-term tank terminal contracts for its Pengerang Deepwater Terminals phase 3 will help to re-rate the stock.
-- BERNAMA
